Goldman Sachs is planning to introduce robo advisory services to cater to less-affluent investors.
A team in Goldman-subsidiary United Capital Financial Partners is working on the initiative.
The move will enable the American banking giant to offer wealth management services to consumers with as little as $5,000 in investible assets, according to the Financial Times.
However, the minimum investment amount is yet to be determined.
Joe Duran, founder of United Capital, told the FT that the robo adviser will initially cater to clients “with low complexity, not that much in assets”. The service will be open to United Capital’s direct clients as well as to other advisers using its wealth platform.
In May this year, Goldman Sachs signed a deal to acquire United Capital for $750m. Currently, the integration of the two businesses is underway, Duran told the publication.
The move to introduce digital wealth management service is seen as Goldman Sachs’ plan to further diversify its business rather than focusing on conventional investment banking operations.
The company already owns a separate online retail bank called Marcus through which it offers personal loan and savings services. It has also invested in British digital wealth adviser Nutmeg.
Goldman Sachs CEO David Solomon is slated to announce the company’s future strategy next month.
Last month reports also emerged that UBS is planning a new service to reach out to less-affluent segment of the customers.