Betterment to Acquire Robo-Investing Accounts from Goldman Sachs

Betterment has signed a deal with Goldman Sachs to take over the digital investment accounts of the investment bank’s Marcus Invest, according to a Monday announcement.

The accounts, which provide tailored investment portfolios online, will be shifted to Betterment in the upcoming months, according to the firm, who did not disclose details of the transaction. The digital wealth manager will only be acquiring Marcus Invest accounts and assets under management. No additional accounts, technology, staff, or operations are being acquired in the transaction, the firms noted.

The transfer of digital investment accounts to Betterment is scheduled for June 29, pending closing requirements. Customers have the option to decline the transfer.

Goldman Sachs will continue to expand its Marcus Deposits platform, which serves over three million customers worldwide and holds more than $100 billion in consumer deposits.

“As we increase our focus on our growing Marcus Deposits platform, we made the decision to transition away from our digital investment advisor offering and wanted to find a great home for those customers,” Marcos Rosenberg, global head of Goldman Sachs Marcus, said in a statement. “Betterment was the obvious choice for those accounts as we share a deep commitment to customer satisfaction. We look forward to continuing to serve our Marcus Deposits customers with great products and a great experience.”

Goldman opened Marcus in 2016, and Marcus Invest in 2021 targeting retail investors with a digital banking and investment platform.

Goldman makes the move after, last August, shedding its personal finance division created from the purchase of United Capital Financial Partners Inc. In 2019. The firm sold the unit, which had been renamed as Goldman Sachs Personal Financial Management, to Creative Planning LLC, noting at the time it followed the bank’s strategy of focusing on ultra-high-net-worth wealth management and workplace growth strategy through RIA and other wealth management clients including Creative Planning.

Clients moving their accounts from Marcus Invest to Betterment will receive automated investment services, varied investment portfolios and tax-efficient tools, according to the firm. Additionally, they’ll have access to diverse account options, planning aids, educational materials and the choice of human advisory services. Betterment has more than 850,000 clients and assets exceeding $45 billion under management.

“This acquisition further cements our leadership in the digital investing space,” Sarah Levy, Betterment’s CEO, said in a statement. “We are excited to welcome these customers to Betterment where our scalable technology platform will continue to support them on their investing journeys.”