Digital Banking
Goldman’s Marcus bank offers customers a digital future
July 17, 2020
Goldman Sachs' startup consumer bank, Marcus, named after the firm's cofounder, has seen an increase in digital-only banking during the coronavirus crisis, according to a report on Yahoo Finance. The firm also saw a 40% shift of its customers to mobile banking during the pandemic, but doesn't expect these customers now to shift back to traditional methods.
"Digital banking is here to stay, and physical branches are a dinosaur. They are a thing of the past. Consumers don't want to visit them," Harit Talwar, head of global consumer business for Goldman Sachs, told the news outlet.
The Marcus bank made its debut four years ago and offers no-fee savings accounts with a 1.05% annual percentage yield that can be opened up with as little as dollar. Marcus also offers access to fixed-rate, no-fee loans of up to $40,000.
After teaming up with both Apple and Mastercard last year, Marcus released its first-ever digital and physical credit card called the Apple Card.
These efforts helped Goldman post consumer banking revenues for Q2 of $258 million, up from this time last year and grew consumer deposits from $20 billion to $92 billion, according to the report. Goldman reported for Q2 $7 billion in loan balances, with about $2 billion from the Apple Card and $5 billion from Marcus' loan business. Talwar said this is because Marcus offers a competitive rate and it's simple and easy customers to access and use.
The bank also offers a deferred payment option for loans and the Apple Card for those struggling from the impact of the coronavirus.
According to Talwar, more than 90% of Marcus accounts were open without any human contact at all, but should a customer ever need help, it's only a click away.
