© Reuters
Goldman Sachs, the Wall Street giant, has announced its withdrawal from the mass-affluent advice market this week as it shifts focus towards enhancing its advisor custody business. The decision, revealed at an industry conference by CEO David Solomon on Thursday, indicates a strategic realignment within the firm.
Solomon explained that the firm undertook a comprehensive evaluation of its Personal Financial Management division, which was being developed using resources from United Capital. This registered investment advisor was acquired by Goldman Sachs in 2018. The review led to the decision to exit the wealth advisory sector for mass-affluent clients.
The move signifies Goldman’s ongoing strategy to identify and concentrate on sectors where it can compete most effectively. It also mirrors the company’s intention to leverage its strengths and resources to optimize its market position and profitability.
This strategic shift underscores Goldman’s admission that even a Wall Street titan cannot dominate all financial services sectors, leading to a more focused approach in areas where it can exert significant influence and derive substantial profitability.
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