Goldman Sachs is planning to launch an app in the U.K. for customers of its digital bank Marcus and also has plans in the works to offer automated investment management, FinTech Futures reported.
The Marcus app for the U.K. will be rolled out to Apple iOS users before the end of this month. Android users will have to wait until June to download the app. The robo-advisory service is anticipated to launch in the region by the first quarter of 2022.
Marcus became available in the U.K. in September 2018 and has since received total deposits of $30 billion. Its deposit reserves are about $5 billion below the U.K.’s ring-fencing requirements. If deposits reach that threshold, Marcus would have to move some of its profits from Goldman Sachs, FinTech Futures reported.
The U.K. comprises less than one-third of the $100 billion deposits that Marcus has worldwide, most of which are held in the U.S.
Marcus pivoted to wealth management in order to stay within U.K. banking rules, which require retail deposits totaling more than $35 billion to be ring-fenced, Reuters reported.
“We are pivoting more into an investment and wealth provider rather than a full-service digital bank,” Des McDaid, head of Marcus U.K., told Reuters.
He added that Marcus grew fast in the region and is looking to repeat that success with its robo adviser platform.
Goldman Sachs reported fourth-quarter earnings that surpassed expectations, with per-share earnings of $12.08 versus the forecasted $7.47. Revenues also came in higher than anticipated at $11.7 billion. Forecasts had pegged revenues at about $10 billion. Revenues tied to equities trading grew by 40 percent year on year to $2.3 billion.
Uber executive Peeyush Nahar was hired by Goldman Sachs as a partner to lead the digital banking division and is expected to start June 1. He replaces Omer Ismail, who left the investment bank for Walmart’s FinTech startup.