Fidelity Clearing & Custody Solutions has struck a deal with Goldman Sachs and U.S. Bank to provide more loans to wealth-management clients of its RIA, broker-dealer and family office partners.
Fidelity says the agreements mean investors will have “expanded access to non-purpose loans … secured by the client’s brokerage account assets.”
Goldman Sachs Private Bank Select, for instance, means advisors can offer eligible clients securities-based loans of between $75,000 and $25 million.
“Wealth management firms are increasingly asked to manage both the asset and liability side of a client’s balance sheet and are looking for a choice of lending solutions and providers, so we continue to see strong demand for these types of products,” said Mike Durbin, head of Fidelity Institutional Product, in a statement.
“By working with several of the major providers in the lending space, our platform offers firms a full suite of options to best meet their clients’ needs,” Durbin explained.
According to Fidelity, GS Select cuts down on the processing time for a loan, from what can be several weeks to as little as one day, by “digitizing the loan-origination process.” It does by using proprietary technology and the resources of a dedicated team of lending managers.