Goldman Marcus UK pauses new accounts - Business Insider - Business Insider

. Deposits have spiked during the coronavirus crisis — £4 billion have flooded in since lockdown began, Des McDaid, head of Marcus UK, told Reuters — and Marcus now holds a total of approximately £21 billion from over 500,000 savers since it debuted in 2018.

In the short term, halting new account openings will put the brakes on Marcus' momentum in the UK. Skyrocketing deposits help Marcus become a more serious contender in a digital banking market that includes other high-profile digital banks like Monzo, Starling, and Revolut. And high-yield savings accounts are likely gaining notice from consumers looking for a safe place to store their savings during the economic uncertainty accompanying the coronavirus crisis.

But freezing customer acquisition efforts will mean that Marcus UK will miss out on much of the buzz. This is not entirely a loss, however, as it will limit the number of deposits on which the bank has to pay its high 1.05% interest rate at a time when major US and UK banks have set aside a combined $78.8 billion to prepare for the economic fallout from the coronavirus pandemic.

But Goldman seems to have deemed the risk of a loss of momentum worth it in exchange for extra time to decide the long-term direction it wants to take Marcus in the UK. Goldman is aware of the fact that a new account freeze will slow growth and is using the measure to avoid having to ring-fence Marcus in the near future.

McDaid told Reuters that "separating Marcus financially and operationally from Goldman Sachs would be a significant change to [its] low-cost business model, which allows [Marcus] to pay consistently competitive rates to existing savers." Throttling Marcus' growth enables Goldman to more slowly approach the £25 billion threshold, giving it time to decide if and when it wants to expend the resources to handle process of ring-fencing.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Inside Sallie Krawcheck's Ellevest: Assets trail digital wealth rivals - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Is it discriminating to say that with 80 mil under mgmt she is rather a failure?
Source: BusinessInsider - 🏆 729. / 51 Read more »

PRESENTING: An inside look at winners and losers of fitness industry - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Inside the hospital at Javits Center, from Navy Reserve officer - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Microsoft expect 70 bln. Income from RAM OS cartridge Windows sales ( which increase stability and security of OS)
Source: BusinessInsider - 🏆 729. / 51 Read more »

Goldman Sachs: 6 oil refining stocks to buy now — and one to ditch - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

The best rewards checking accounts right now - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Facebook's refusal to remove a post by Trump still won't hurt its ad business - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. true. but its' worth retweeting to see how 45 thinks of the protesting and protestors, and to remind American ppl of his way of thinking.
Source: BusinessInsider - 🏆 729. / 51 Read more »