Goldman Betting Fintech Can Help Solve Retirement Savings Problems

Goldman Sachs Group Inc GS announced that its investment management arm had agreed to acquire Honest Dollar, in an attempt to widen its portfolio of financial services for small businesses and startups.

Honest Dollar is an Austin, Texas-based online retirement savings platform that targets the roughly 45 million Americans without access to employer-sponsored retirement plan.

Timothy O'Neill and Eric Lane, co-heads of IMD at Goldman Sachs, explained in a statement, "Honest Dollar has created a simple solution to a complex retirement savings problem… Together, we have the potential to help millions of people achieve their investing goals."

Related Link: How Do Bankers See The Fintech Threat?

Goldman did not disclose the terms of the deal, which is expected to close in the second quarter of the year.

In related news, Goldman recently launched an ETF operation, in an attempt to grow its investment management segment, as its traditional profit generation businesses, like trading, face increasing macro and regulatory pressures.

The Honest Dollar purchase may be another attempt to provide a boost to the investment management arm of the firm. Shares were nearly unchanged on the day, trading at $153.79.

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Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.