The financial giant is launching an online deposit business in the UK.
The financial giant is launching an online deposit business in the UK.
Wall Street giant Goldman Sachs could take ‘alternative’ lending to the next level. The firm is planning to launch an online deposit business in the UK by the middle of next year.
It will aim to replicate the success of its online retail-lending brand Marcus in the US by bringing the service to the UK.
Like the US bank, the new UK service will aim to offer higher returns on savings than other retail banks, Stephen Scherr, head of strategy at the bank, told the Financial Times.
"Much like in the US, we’re aiming to offer consumers easy-to-use and higher-returning savings options than [they] might have elsewhere," he told the paper. The firm may also add a lending arm to the UK bank later on, he added.
The firm launched the US savings account in April 2016, offering an interest rate of 1.05 per cent and a minimum deposit of $1. It then launched its lending arm Marcus in October and is a competitor of Lending Club and Sofi.
The lending business crossed the $1bn milestone in June of this year. Users can apply for unsecured loans of up to $30,000 through the platform. It was named after one of the founders of Goldman Sachs, who immigrated to the US from Bavaria in 1848.
Goldman has other lending strategies as well. In July it launched a fintech-style platform where it makes loans of $75,000 to $25m using borrowers' investment portfolios as collateral.
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