With the acquisition of Chicago-based fintech business NextCapital, Goldman Sachs will now be able to offer automated pension scheme recommendations to its clients. According to a bank’s statement on Tuesday, the agreement’s details have not been published and are expected to be finalized in the second half of 2022. Based on the Financial Times, the transaction has become a part of the five largest financial advisory acquisitions completed by Goldman Sachs.

Goldman and its competitors are competing to strengthen connections with crucial demographics such as company members and diversification of income by expanding into managing money, which is often a more stable funding source than trading and other Wall Street activity.

Goldman Sachs Plans to Purchase NextCapital

According to a Goldman Sachs announcement, NextCapital, the Chicago-based fintech startup that provides automated retirement plan consulting, will be acquired. The deal, whose terms weren’t revealed, would be concluded within the second half of 2022, according to a statement released by the bank on 29th March. Based on the Financial Times, which broke the news of the agreement first, the takeover is a part of the five leading portfolio management acquisitions completed by New York-based Goldman Sachs.

Recently, Goldman and competitors like JPMorgan Chase and Morgan Stanley have increased their financial technology and asset management acquisitions. The banks are competing to strengthen relationships with critical groups such as company members and diversify earnings by increasing cash management, which is often a more stable revenue generator than trading and other Wall Street operations.

This purchase advances our strategic goal of establishing engaging customer services in portfolio management and increasing our investments in FinTech to accommodate the burgeoning defined benefit plans industry, stated Goldman CEO David Solomon in a statement.

NextCapital was created in 2014 and perhaps recently increased private equity in 2020 after it announced cumulative financing of $85M. The agreement provides Goldman with another instrument to help customers boost their employees’ retirement prospects. The bank stated that it already oversees $350B in annual revenue for designated beneficiaries and specified participation plans.

Employers want customized solutions and guidance that could best help personal saving and investment goals, claimed Luke Sarsfield. We trust that personalization is the destiny of pension benefits and that it will fuel the next surge of creative pension alternatives, says the company.

NextCapital

NextCapital is the industry-leading name in digital advisory platforms, offering options to assist everyone in successfully retiring. NextCapital collaborates with banking firms to provide investors with individualized financial preparation and accounts management through various channels. The company’s open-architecture online advising solution includes account gathering, analysis, making plans, investment management, and the ability for partners to modify advise methodologies and trustee roles.

If you’re a member of a business pension scheme or a retailing investor, they have a pension scheme that’s right for you. Technology is used in every one of their services to increase productivity and lower costs. Each one comes with a retirement preparedness evaluation, savings guidance, a customized portfolio, and concrete strategies to help you get ready for and via retirement.