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Fidelity Clearing to Partner With Goldman, US Bank; Expand Loans to Wealth Clients

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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.

“GS Select was built upon our wealth management and lending expertise to help independent advisors enhance their client relationships,” said Andrew Kaiser, head of the Goldman Sachs Private Bank, in a statement. “By applying technology across the life cycle of a loan — from origination through collateral management — we are able to more quickly and effectively meet the needs of financial advisors and their clients.”

Fidelity says its clearing unit will continue to offer margin borrowing and non-purpose loans to wealth management clients of advisor and brokerage firms it works with, as well as products like credit cards, debit cards, checking and bill payment.

U.S. Bank is working with Fidelity to offer wealth clients non-purpose loans secured by assets on the Fidelity platform. In addition to securities-based lending, wealth management firms can access other credit products via U.S. Bank’s Private Banking team.

“In today’s competitive marketplace, adding custom banking products to an advisor’s practice can be an important advantage, enabling advisors to offer more financial options to their clients than ever before and helping them to build stronger client relationships,” said Rachel Ferguson, national private banking director for U.S. Bank, in a statement.

Fidelity currently works with assets under administration of $6.2 trillion, including managed assets of $2.3 trillion as of June 30. It partners with more than 12,500 financial advisory firms.