Marcus by Goldman Sachs
Goldman Sachs plans robo-investment feature for Marcus in the UK
Marcus’ customers here in the UK will soon be able to invest in diversified portfolios with the American bank.
The new automated feature will give users a tailored portfolio of stock and bond ETFs, which will be dependent on the customer’s risk level and timeline.
Marcus will handle the day-to-day handling of the portfolio, monitoring it daily and reworking the account to keep it on track with the individual customer’s goals.
A spokesperson for the bank said: “We’re excited about expanding our offering to investment products. Marcus Invest will launch in the United States during the first quarter of this year, with the UK launch planned for the second half of 2021. We look forward to providing additional information about these products in due course.”
An account can be opened with $1,000 in the US and is charged an annual fee of 0.35 per cent, although it’s not known how much UK customers will need to open an account with the American bank’s fintech arm.
Unlike other popular trading and investment apps, Marcus’ investment product will not let users buy and sell individual stocks, rather they will be able to invest in diversified portfolios.
The news of the new investment-friendly account comes just a week after Marcus reopened its virtual doors to UK savers after it stopped signing up new customers in June 2020 following a surge in demand.
As a result of the Covid-19 pandemic, Marcus was forced to shutter its easy-access savings account as its 500,000 deposited billions of pounds, meaning the bank was edging closer and closer to regulatory limits.
Marcus currently has more than £21bn in its savings accounts and British banking regulations require companies with deposits of more than £25bn to become a separate entity from its parent company, called ring-fencing.
A spokesperson for the bank clarified that this hasn’t happened yet and that it is keeping a watchful eye over customer deposits.
UPDATE 17-02-2021 - Article was updated to include a statement from Marcus by Goldman Sachs.