For the first time, it is allowing rivals to sell their own investment products through a Goldman web application, according to several clients and the bank.
With the move, Goldman aims to do more than sell just its own products. It is looking to create an online platform used by others—even competitors—to reach customers. Just as iPhone users can choose Google Maps or Spotify’s music-streaming service instead of Apple’s own applications, retail brokers across the country can choose aWells Fargo& Co. debt instrument for their clients’ portfolio, using the Goldman web tool.
It is a fresh example of investment banks seeking new ways to make money as superlow interest rates and tougher regulation crimp profits. In some cases, banks like Goldman are transitioning from swashbuckling traders to toll-taking middlemen, taking less risk to earn smaller fees.