By Roger Baird on Tuesday 11 June 2019
The US powerhouse bank said it will launch savings products with Saga later this year.
Goldman Sachs’ online account has announced a tie up with Saga, the over-50s insurance and travel company, to launch savings products later in the year.
Marcus by Goldman Sachs said in May it had attracted 250,000 customers to its 1.5 per cent variable savings rate, amassing £8bn in deposits just eight months after the US bank’s British launch. The account so far offers just a single product.
UK firm Saga said the move is aimed at “returning to its heritage of delivering high-quality products and services” following a profit warning in April.
Both businesses said they “will launch new products together from autumn 2019”.
Marcus global head Harit Talwar said: “This partnership is an example of our ambition to bring our global scale and deep capabilities to meet a broad range of personal finance and investment needs.”
The powerhouse bank launched the digital business - named after founder Marcus Goldman - in 2016, and said in May it held more than $35bn in assets under management in its UK and US operations. The lender’s British online savings arm is led by managing director Des McDaid (pictured).
Saga lowered its profit forecast in April, warning older Britons were cutting back on their travel plans because of uncertainty over Brexit. It added is also faced margin pressure in its insurance business and cut its dividend, denting its share price.
Saga chief executive Lance Batchelor welcomed the deal with Goldman Sachs.
Batchelor added: “This is an important strategic partnership for Saga that will help us provide innovative and high-quality products that will be designed not just to meet our customers’ needs, but to exceed their expectations.”