Wall Street titan Goldman Sachs has moved into retail finance in the UK as it launches a new savings bank.
The bank is opening its doors to less affluent consumers with an online access account that can be opened with a minimum £1 deposit.
The Times reports that the new savings bank, named Marcus after Marcus Goldman, the company’s founder, will go live next month after Goldman’s 6,500 London staff were offered the chance to open accounts yesterday.
Though market conditions may impact it in future, Marcus is set to pay a 1.5 per cent interest rate on deposits, which it claims will be the highest in the market.
Goldman tells The Times: “Our initial offering aligns to one of Marcus’ core tenets, offering transparent, simple and easy-to-use products that provide value.”
It adds that the UK launch “represents an important milestone in the growth of Goldman Sachs’ consumer business, as well as continued diversification of the firm’s funding.”
Goldman has already launched its Marcus account in the US, bolstering its retail deposits, diversifying its revenue streams and taking pressure off regulatory stress tests.
The US Marcus account also offers loans, but The Times says there are no immediate plans to do so in the UK.