Goldman Sachs Buys Personal Finance App Clarity Money

Goldman Sachs Group Inc GS has completed its buyout of fintech startup Clarity Money in a deal that's reportedly worth $100 million.

What Happened

Goldman announced on Sunday it has officially acquired Clarity and its more than 1 million customers. Clarity is a lending app that leverages the power of machine learning to help users better manage their finances. The Clarity app is linked to customer checking and credit card accounts and helps the average user save roughly $300 by analyzing their transactions.

Prior to the Goldman buyout, Clarity and its founder Adam Dell had raised about $15 million in funding. Goldman intends to incorporate Clarity into its Marcus online lending platform, and Dell will join the Marcus team as a partner.

“Clarity Money has pioneered a consumer-centric approach to personal finance that will help Marcus continue to put power in the hands of consumers,” said Stephen Scherr, Chief Executive Officer of GS Bank and Head of the Consumer & Commercial Banking Division.

What It Means

The popularity of fintech and personal finance apps has exploded in the past decade, and the Clarity buyout is further evidence the traditional banking industry is embracing the disruptive trend rather than trying to fight it.

Clarity was one of more than 300 attendees of the Benzinga Global Fintech Awards in 2017. The buyout news is an indication that Goldman Sachs and other Wall Street heavyweights pay close attention to the pool of talented entrepreneurs that attend and compete at Benzinga’s annual event each year.

To register yourself or your company to participate in this year’s event, which will take place in New York City on May 15 and 16, visit the event website here.

Related Links:

Your 2017 Benzinga Fintech Award Winners

Clarity Money, An $11-Million Funding Round And Your Financial Health