Goldman Sachs (GS) is making a strategic shift by exiting the robo-advisory business and selling its Marcus Invest digital investing accounts to Betterment. The move comes as CEO David Solomon leads the firm in refocusing on its core strengths of trading, asset management, and investment banking.
Marcus Invest, an algorithm-driven investment advisory business launched in 2021, was part of Goldman’s efforts to offer more affordable services to the mass affluent. However, the firm is now streamlining its consumer offerings and concentrating on its key areas of expertise.
This decision follows previous moves to sell off other consumer-focused units, including a personal finance division and specialty lender GreenSky. Goldman is also looking to divest its credit card partnership with General Motors, while maintaining its partnership with Apple.
The firm’s profits rose 28% in the first quarter of 2024, driven by strong investment banking revenues. This positive performance has boosted Goldman’s stock, which climbed nearly 3% on the news of the Marcus Invest sale.
The transition of Marcus Invest accounts to Betterment is expected to take place by June 29. Goldman reassured customers that it remains committed to its Marcus Deposits platform, which includes savings and certificates of deposit accounts.
Goldman’s global head of Marcus, Marcos Rosenberg, expressed confidence in the decision to partner with Betterment, stating that it aligns with the firm’s focus on growing its deposit platform. The move reflects Goldman’s strategic realignment and commitment to its core business areas.