Goldman Sachs’ lending platform Marcus coming to UK
Goldman Sachs’ online personal loan platform Marcus is coming to the UK.
Wider national roll-out “in the coming weeks”
In an internal memo, seen by many British newspapers, it reveals that the bank told staff that Marcus would open to its 6,000 UK-based staff ahead of a wider national roll-out “in the coming weeks”.
As reported by FinTech Futures in October 2016, Goldman Sachs unveiled Marcus in the US.
Named after Marcus Goldman, one of the firm’s founders, the platform provides consumers with a way to “consolidate their high-interest credit card debt”. Borrowers can apply for fixed-rate, no-fee personal loans of up to $30,000 for periods of two to six years.
In April 2018, Goldman Sachs completed the acquisition of Clarity Money to bring over one million customers to Marcus.
In the latest development, the FT says Goldman Sachs’ consumer bank will accept its first UK depositors from today (23 August), and is understood to be offering the highest interest rate in the country to entice new savers into the first international expansion of its new retail arm.
The 1.5% rate on offer puts Marcus nine basis points ahead of the current highest-yielding instant-access savings account available in the UK, according to Moneyfacts.
However, the bank cautioned employees that the current rate “may be subject to change for the nationwide launch, depending on market conditions”.
The lender described the move as “an important milestone in the growth of Goldman Sachs’ consumer business, as well as continued diversification of the firm’s funding”.
Since its launch, Marcus has accumulated more than $20 billion in deposits and lent $3 billion to customers. It’s part of a plan to increase revenues by $5 billion over the three years to 2020.
Some UK challenger banks – such as Atom, Monzo and Starling – specialise in savings accounts. So the Marcus move will stoke up the already intense rivalry across the nation.
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This is a sign of the times to come; low barriers of entry, changing customer expectations and technological innovation – over time increase the number of new entrants. Interestingly, Marcus is underwritten by a significant institution with Banking in its DNA. Exciting times ahead.