Goldman Sachs ,Inc (NYSE:GS) investing app, Simon, is gaining the interest of rival banks.
Major banks such as JP Morgan, Wells Fargo, and Credit Suisse among others are in advanced talks to buy shares in the app, which is estimated to be worth $100 million. Simon is used for selling complex investment products.
CNBC reports on the situation:
Simon was developed as a web-based operation to sell complicated bond-like investments to retail investors through brokers. The idea was to get rival banks to sell the investment products, called structured notes, to retail brokers through the app, but Goldman’s ownership kept competitors at bay. Getting outside owners on board was seen as a way to boost the use of the app.
This isn’t the first major home-grown technology produced by Goldman Sachs, as the investment bank created REDI trading technology. In 2013 it sold the majority of the technology to hedge funds and other money-management firms.
Goldman Sachs, Inc shares rose $0.22 (+0.09%) in after-hours trading Wednesday. Year-to-date, Goldman Sachs Group, Inc. (The) (GS - Get Rating) has declined -6.63%, versus a 10.06% rise in the benchmark S&P 500 index during the same period.