Goldman Sachs’s Marcus account set to disrupt the UK deposit market as 67% of savers say interest rate drives provider choice

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Following the recent announcement that Goldman Sachs is to offer their ‘Marcus by Goldman Sachs’ savings account to members of the public in the UK,

Kit Carson, Head of Banking and Fintech at GlobalData, a leading data and analytics company, offers his view on the company’s latest move:

“This product is set to disrupt the hitherto tranquil UK deposit market by appealing to two of the key drivers for UK savers, interest rate and brand equity – 67% of savers in the UK cite a good interest rate and 58% cite a ‘well regarded’ brand as the top 2 drivers when choosing a savings provider, according to GlobalData’s latest Retail Banking Insight Survey.

‘‘The strength of Goldman’s brand equity speaks for itself and with Marcus’s launch rate of 1.5% putting many high street brands in the shade we expect to see savers switching to Goldman’s, especially at the upper end of the retail market where 85% of those holding over £7,000 say that they are driven by the rate on offer.

‘‘The reputation of some High Street banks has also suffered of late from the instability of their digital platforms. This will provide a further incentive for depositors to move and retain their funds with Goldman’s digitally based Marcus product in the medium term.

‘‘GlobalData’s expectation is that the big 9 will now be forced to raise their rates for their savers in kind. Given UK banks are notorious for passing on the Bank of England’s full base rate rises to borrowers whilst offering more miserly rates to depositors, Marcus by Goldman Sachs will be welcome news for UK savers.’’

Data Source: GlobalData’s Retail Banking Insight Survey which analyses the critical drivers of savers when choosing a deposit and savings provider.

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