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Goldman Sachs' savings account Marcus hits 250,000 UK customers

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·Senior City Correspondent, Yahoo Finance UK
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FILE - In this Dec. 13, 2016, file photo, the logo for Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. Goldman Sachs reports earnings Tuesday, July 17, 2018. (AP Photo/Richard Drew, File)
Goldman Sachs appears above a trading post on the floor of the New York Stock Exchange. Photo: AP Photo/Richard Drew.

Marcus by Goldman Sachs has signed up more than a quarter of a million customers in the UK in just under eight months.

Des McDaid, the Goldman managing director who heads up Marcus in the UK, told Yahoo Finance UK: “We’ve passed a quarter of a million customers and just over £8bn in deposits or savings, so for us it’s hugely exciting.”

Marcus by Goldman Sachs is an online savings account in the UK that offers a savings rate of 1.5%. It is the investment bank’s first foray into mainstream mass banking.

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The brand was launched in the USA in late 2016, before launching in the UK, its first market outside North America, last September. Goldman Sachs said in November that 100,000 people had signed up to Marcus in the UK after little over a month.

The rapid growth came despite slowing momentum in the UK savings market as a whole. Savings growth hit an all-time low in 2018, according to figures from UK Finance.

“I think we came out of the blocks very fast as a business,” McDaid told Yahoo Finance UK. “Our first month was huge, it’s settled down now but we’re still growing fairly consistently.”

McDaid put the growth down to a “simple, straight-forward offering, delivered well.” Marcus currently only offers one account in the UK, an easy-access saver.

“Our goal was you could open an account in a few minutes, it was supposed to be quick,” McDaid said. “When you phoned us, we were there, we didn’t have automated voice systems that made you press one, press two.

“It was almost like having a premium offering but making it accessible as well — that whole thing of starting [saving] from £1.”

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Sign-ups have a “bias to the south and London” among customers, McDaid said, but he insisted it is a national brand.

“We’re really not trying to be anything other than a mass bank but I think the Goldman Sachs brand will attract a certain type of people as well,” he said.

McDaid said Marcus would likely launch new products next year and suggested cash ISAs, joint accounts, and term accounts could be likely additions.

“We haven’t quite decided what our next product will be yet,” he added. “It will be what can we deliver in a simple way to bring value to our customers.”

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Oscar Williams-Grut covers banking, fintech, and finance for Yahoo Finance UK. Follow him on Twitter at@OscarWGrut.

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