Betterment has entered into an agreement with Goldman Sachs to acquire the digital investment accounts of the investment bank's Marcus Invest, as announced on Monday. Betterment will integrate Marcus Invest's accounts into its operations. The company currently manages over $45 billion in assets and serves more than 850,000 clients. The transition is set for June 29, 2024, though Marcus Invest customers can opt-out.
Goldman Sachs introduced Marcus Invest in February 2021 to enable automated stock purchases and cater to retail investors. At the launch, the company highlighted that Marcus Invest and Marcus Checking provided a digital, app-based banking experience aimed at making Goldman Sachs a primary banking partner for customers.
Marcos Rosenberg, global head of Goldman Sachs Marcus, explained the rationale behind choosing Betterment to take over the digital accounts. "As we enhance our focus on the Marcus Deposits platform, we needed to find a suitable new home for our digital investment advisor customers," Rosenberg said. "Betterment's proven commitment to customer satisfaction made them the natural choice. We are excited to continue providing top-tier products and experiences to our Marcus Deposits customers."
Goldman Sachs will look to continue scaling its Marcus Deposits platform, which caters to over three million customers worldwide and manages more than $100 billion in consumer deposits.
The business adjustment follows Goldman's recent divestiture of its personal finance division. Last August, the firm sold its personal financial management business to Creative Planning.
According to Betterment, clients transitioning from Marcus Invest will benefit from Betterment's automated investment services, diverse portfolio options, and tax-efficient strategies. They will also have access to various account types, planning tools, educational materials, and the option to consult with human advisors.
Sarah Levy, CEO of Betterment, described the acquisition as a strategic enhancement of the company's market presence. "This acquisition further cements our leadership in the digital investing space," Levy said. "We eagerly anticipate supporting these new customers with our advanced technology platform."
The release also states that Betterment is acquiring only the accounts and assets under management from Marcus Invest; the transaction does not include any other accounts, technology, employees, or operations.
