Goldman Sachs has established a digital lending service for affluent consumers who hold portfolios at third party wealth management firms.
The programme provides financial advisors at third-party broker-dealers, Registered Investment Advisors and asset custodians the ability to offer securities based loans in the form of a revolving line of credit within 24 hours to their clients.
The service, dubbed Private bank Select, extends Goldman's lending into the large and growing independent advisor market serving the needs of the mass affluent segment. Individuals with at least $150,000 of non-retirement assets under management will be eligible to apply.
"This programme is a quick, simple and convenient way for investors to borrow up to $25 million against securities held in investment accounts at the firms that Goldman Sachs partners with," says the Wall Street giant.
The bank has struck up a relationship with Fidelity Clearing & Custody Solutions, offering RIAs and broker-dealers that clear on Fidelity’s custody and trading platform the ability to provide loans to eligible clients. Other partnerships, primarily aimed at private wealth management businesses without bank affiliates, are set to be announced over the coming months.