The Diamond Podcast for Financial Advisors Industry Update on Goldman Sachs: What could a new RIA custodian mean for advisors and the industry?
Oct 29, 2020
Louis Diamond, an industry expert and partner at Diamond Consultants, discusses the seismic shifts at Goldman Sachs as they dive into the RIA custody business. He explores how this move could disrupt traditional finance and the implications for Goldman Private Wealth Advisors. With insights on Goldman's strategy, potential revenue motives, and competitive responses from firms like Morgan and UBS, Louis also considers how this shift might attract breakaway advisors and family offices looking for new opportunities. A compelling analysis of what's ahead!
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Goldman Validates RIA Channel
- Goldman's move into RIA custody validates the independent RIA channel and increases competition for advisors and clients.
- The brand cachet of Goldman could let advisors leverage prestige while remaining independent if the custodian succeeds.
Folio Purchase Signals Intent Not Scale
- Folio's $11 billion of assets is meaningful but small relative to Goldman and likely a foundation rather than a full solution.
- The acquisition signals intent but not an immediate, large-scale custodian capability.
Build On Folio, Leverage Goldman Ecosystem
- Goldman will probably use Folio as a base and invest heavily in engineers and integrations to build out custody services.
- They can connect custody with Marcus, credit card, and other Goldman lines to offer an end-to-end advisor platform.