Goldman Sachs has signed up for 100,000 customers at its new retail bank, Marcus, in just one month – and now plans to set up a Cash Isa and Asset Management service.
The company, known as "Vampire Squid", because it has a strong grip on the banking industry, founded the online retail bank Marcus in September with a savings account that pays 1.5 percent interest.
Executives told The Mail on Sunday that the bank had recovered more than £ 2.3 billion in deposits. This means that the average saver has paid £ 23,000.
Big plans: Goldman is known as "Vampire Squid" because he has a strong grip on the banking industry
Marcus has promised to shake up the savings industry with simple and competitive accounts – and growth has already led competitors like Barclays to raise interest rates.
Des McDaid's UK CEO said customers were tired of selling confusing accounts with catches that toppled their interest rates. "Customers should not need a degree to figure out how an account works," he said.
Marcus now wants to introduce more savings products like Cash Isas, but McDaid did not want to say when the division would start lending deposits or what form these loans would take. Bank ring fencing rules prohibit banks from using private deposits for investment banking.
Goldman has built a fearsome reputation for his relentless pursuit of profit, and Marcus' launch is an attempt to give retail customers a friendlier face.
Harit Talwar, the Goldman banker accused of promoting Marcus' global expansion, told The Mail on Sunday that savers are angry at how banks treat them – and that Marcus has a chance to win them over to win.
"People who save do not feel respected by the financial services industry," he said. What does that reflect? Banks are just trying to take care of themselves. "
He said the bank also wanted to launch a mass-market wealth management arm in the UK.
"We have a very strong, successful wealth management business for high net worth individuals in both the US and the UK," said Talwar.
We plan to translate some of our best investment products and advice to be relevant to a wider range of clients
"We plan to implement some of our best investment products and advice to be relevant to a wider range of clients." The move is part of Goldman's strategy under its new CEO, David Solomon.
In the US, Talwar persuaded former CEO Lloyd Blankfein to call customers and thank them for their business, a service typically intended for corporate clients. This is also planned in the UK.
Talwar said: "Here in London we have [UK chief executive] Richard Gnodde calls customers and thanks them for their business. "
He said the idea of founding a digital retail bank had surfaced in 2014 at the residence of Gary Cohn, then president of Goldman.
After brunch in the Hamptons – a prosperous part of the New York coast – top executives have decided that providing financial services to consumers online over the next decade will be a major source of revenue growth.