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Goldman Sachs Launches Digital Wealth Platform

Tom Burroughes Group Editor London 27 July 2017

Goldman Sachs Launches Digital Wealth Platform

The US firm is reported to be looking beyond some of its traditional client base with the roll-out of a new wealth platform.

Goldman Sachs is reaching beyond its traditional network of ultra-high net worth wealth management clients to pursue part of the “mass affluent” segment, launching a digital platform through which clients of other firms and brokerages can apply for loans.

The platform, called GS Select, will make loans of $75,000 to $25 million using borrowers' investment portfolios as collateral.

The firm said that GS Select is an expansion of its existing Private Bank business in PWM, which uses a digital platform to extend the lending services customarily reserved for PWM clients to non-PWM clients. "GS Select expands lending into the large and growing independent advisor market; the investing needs of this market are already served by Goldman Sachs Asset Management through the Third Party Distribution (‘TPD’) business," it said in a statement. "This programme is a quick, simple and convenient way for investors to borrow up to $25 million against securities held in investment accounts at the firms that Goldman Sachs partners with for this lending programme."

The loans are offered through GS Bank USA, it added.

Goldman Sachs reported second-quarter financial figures a few days ago,

The firm is partnering with Fidelity Investment's clearing and custody business, which caters to small brokerages and wealth management firms. Those firms, in turn, have investors who may need loans.

"It's a relatively lower risk marketplace but a very big market," Andy Kaiser, head of Goldman's private bank, also told Reuters in an interview. The report went on to say that Goldman Sachs also plans to leverage relationships with outside investment managers through its asset management division, which sells its own mutual funds, structured notes and alternative investments.

The bank says GS Select will be able to approve and process loans in just one day, and eliminate loads of paperwork that typically accompany applications.

 

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