Goldman Sachs seems interested in making another move into the fast-growing world of robo-advisers. The leading investment banking organization is advertising for a software developer to help with its Digital Advise Solutions (DAS) business which covers “mass affluent market by building an Automated Digital Advice Platform (Robo Advisor)”.
Goldman’s strategy is focused on advising and seeking financing for large corporations, as well as investing in businesses that it believes can be resold for large profits. The investment bank launches its latest venture as it came under pressure to justify the high fees it charges. This has prompted the bank to look at ways to broaden its customer base outside of wealthy clientele with $50 million or more in assets, including developing tools based on artificial intelligence.
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Robo-advisers, which use computer programs to provide investment advice online, typically charge less than half the fees of traditional brokerages. In addition, Goldman expects that the robos will attract the mass affluent segment, broadly defined as those with less than $1 million in investable assets, who may be attracted by its high-level technology services.
A recent surge of private investment in fintech companies, together with wealthy clients’ rising interest in robo-advisers, have prompted global banks to race to release their own versions of the automated investing technology. The options included initiatives to buy, build or partner to keep pace with the new technology.
Goldman, which prides itself on advising the world’s richest clientele, last year launched an internal venture called Marcus to challenge the likes of Lending Club which provide loans to consumers and small businesses. It has also acquired GE Capital’s online bank, online retirement savings platform Honest Dollar, as well as Symphony’s messaging service which taps a big consortium of financial services firms.