- Goldman Sachs launched its Marcus product in the UK in early October and has already raised $US7 billion in deposits.
- Marcus has been a big hit in the UK so far with over 100,000 people signing up.
- “We were the beneficiaries of hitting a nerve in the UK market where we were paying more than the high street banks and deposits came our way,” said Stephen Scherr, Goldman Sach’s CFO.
Goldman Sach’s Marcus launched in October last year in the UK and its performance to date has validated the move.
UK customers deposited nearly $US7 billion (£5.4 billion) with the bank in the first three months of business. Marcus took a total of $US35 billion of deposits in 2018, across both its UK and US operations.
The bank attracted more than 100,000 customers in the UK with its 1.5% saving rate, one of the highest rates available to UK consumers.
“In the UK, we opened up to be perfectly candid with much more demand than we had anticipated and that will give us an ability to moderate the acceleration of rate,” Stephen Scherr, Goldman Sach’s CFO said during the bank’s earnings call Wednesday.
“We were the beneficiaries of hitting a nerve in the UK market where we were paying more than the high street banks and deposits came our way, but the influx of that will give us more manoeuvrability on the rate.”
Goldman Sachs has previously confirmed to Business Insider that a lack of physical branch infrastructure allowed the bank to offer better interest rates to UK customers.
Its earnings call also cited lower financing costs as part of its rate offering.