Goldman Sachs’ online banking, Marcus and its new mobile app.
Goldman Sachs online banking Marcus recently launched a new mobile app that goes beyond loan payments and balance transfers. Some critics believe they were behind in the game which could have negatively impacted market share as Marcus faced criticism from smartphone users.
Goldman Sachs started the bank as Marcus just over three years ago to diversify into the retail banking industry without diminishing the well-known Goldman Sachs brand on Wall Street for investment banking . The bank offers savings accounts as well as personal loans which tend to be at higher interest rates compared to other types of traditional bank loan offers.
Personal loans are growing exponentially thanks to online competition. Goldman Sachs is known primarily as an investment bank and has no presence as a physical banking institution. The company admitted that customers had requested an app for most of 2019 and spent a lot of time developing throughout the year. The bank explained that it wanted to make sure it was the best app in its class.
Even though Marcus is only a few years old, with Goldman Sachs behind him, online banking has emerged as a major player in the online retail banking industry. The bank claims more than $ 50 billion in deposit activity as well as $ 5 billion in loans, from personal loans that are short-term in nature.
That said, compared to the rest of Goldman Sachs, $ 50 billion in deposits is a very small percentage of its business. Consumer banking still has a long way to go before it brings the kind of volume to the business that investment banking does. Marcus, however, shows a lot more promise than his credit card business.
Credit cards may have been a step too far, at least for now. As online banking has become mainstream and the Marcus brand begins to gain recognition beyond its connection to Goldman Sachs, it will likely experience exponential growth over the next two years and achieve more impressive profit margins.