Digital Banking

Marcus Exceeds Goldman’s UK Expectations

Goldman Sachs’ online retail bank Marcus is enjoying a strong debut internationally — the company says the rollout of Marcus in the U.K. has “exceeded every expectation.”

According to a report in CNBC citing Des McDaid, a managing director at Goldman Sachs, Marcus has more than 100,000 customers since launching in the U.K. at the end of September. Part of the reason could be the 1.5 percent interest rate on savings, which is the highest rate in the market for these instant accounts.  “U.K. savers have been waiting for something for a long time,” McDaid said during the LendIt FinTech conference in London, which was covered by CNBC. “We said we'd put the interest back into savings. We did that by creating a bit of a buzz, a bit of a noise around our launch, and it's just taken off.” The managing director noted that even after Brexit, Goldman Sachs and Marcus are committed to the business. What's more, he said the uncertainty about the impact Brexit will have on the UK economy gives consumers another reason to save more money. “We're in the U.K. to stay, and hopefully U.K. savers know that,” McDaid said.

As it stands now, Marcus only offers a savings account for customers in the U.K. — but it could expand its services, with McDaid saying it could offer lending, wealth management and open banking products. He said Marcus is looking at expanding into other areas of Europe such as Germany. “If you can fix a customer need, and Germany's the right place, it feels like a logical step for us,” he said, according to Bloomberg. What's more, the executive said Marcus could make acquisitions or partner with a FinTech where it is appropriate, pointing to its purchase of Clarity Money, which is a personal financial management tool. He said Marcus is also working internally on technology with a team of 6,000. “We have the capability and the financial know-how to make this work,” McDaid said, according to CNBC.

 

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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