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The Client-Centric Trend Continues

A couple of items on firms entering new territory to note.

○ First, Goldman Sachs is reportedly developing a wealth management offering to append to Marcus, the firm’s retail banking platform. The offering is expected to be a hybrid robo/advisor-based service that will round out Marcus’ banking, lending and soon to be insurance and retirement savings products.

○ Next, Envestnet announced that it is adding lending to its growing advisor platform through a partnership with Advisor Credit Exchange. Envestnet plans to offer consumer loans by the fourth quarter of this year and commercial loans by 2020.

Both of these developments underscore the continuation of the trend for leading financial service firms to provide increasingly comprehensive service packages designed to meet the broadest range of consumers’ financial life needs. Often, as is the case with Goldman, these packages are built with the specific needs of target segments such as the mass affluent in mind, and with reference to growing databases of client interests, activities, consumption patterns and preferences.

In the words of Envestnet’s CEO, the addition of the lending solution to Envestnet’s wealth management platform is “crucial for Envestnet to provide advisors with the most comprehensive financial wellness service to their clients.”

We expect the trend toward relationship-based, integrated multi-product packages to continue as markets increase their demand for customized offerings built around their needs rather than vendor defined product silos.