Goldman SachsHas agreed to purchase NextCapital,A Chicago-based fintech company that offers automated advice for corporate pension plan participants.

According to a press release Tuesday, the bank stated that it will close the deal in the second half this year. According to the Financial Times which reported it, the acquisition is one of the five most important asset management transactions New York-based Goldman had done.

Goldman Sachs, and other rivals Morgan Stanley JPMorgan ChaseIn recent years, banks have increased their investments in fintech and asset-management. Banks are trying to build relationships with corporate workers and diversify their revenue streams by investing in money management. This is typically a steady revenue source that’s more stable than trading or other Wall Street activities.

David Solomon, Goldman CEO and President of Goldman Investments stated that this acquisition was in line with our strategic objectives to create compelling solutions for asset management. He also said that it would accelerate our investments in technology in order to service the expanding defined contribution market.

NextCapital was established in 2014. most recentlyIt raised venture capital in 2020 when it reported that it had received $85 million of funding.

Goldman now has another way to provide employees with ways to increase their retirement prospects. Goldman is known for its ability to provide retirement solutions that are tailored to employees. AycoIts personal financial management solution, stated that the company already holds approximately $350 Billion in assets and is under surveillance for defined benefit plans and defined contributions plans.

Luke Sarsfield is the global head of Goldman’s asset management division. He stated that employers are seeking to give their employees personalized solutions and customized advice in order to better help them save and invest. We believe that personalization will be the new wave in innovative retirement strategies.