Goldman Sachs Could Set Up Online Retail Bank In Australia

Post by Sharat on September 28, 2017 · Under banking · Comments Off on Goldman Sachs Could Set Up Online Retail Bank In Australia 

Australian banks have been put on notice after global investment bank Goldman Sachs announced that it is intending to enter the UK market with a high-interest online savings account in 2018. In an interview with the Financial Times, Stephen Scherr of Goldman Sachs said the investment bank plans to increase its retail profile by offering online personal banking in the UK in the same way it has already done in the US. The bank intends to provide consumers with easy-to-use savings accounts that offer high rates of interest.

Not just for the super-rich

Goldman Sachs is usually associated with the super-rich, however the investment bank began offering savings accounts with minimum balances of as little as US$1 at the beginning of last year. Goldman’s followed up the product by offering unsecured personal loans for US customers under the brand name Marcus.

Australia an attractive market

Goldman’s foray into the UK market comes at a time when FinTech Australia revealed that Sydney is the eight most attractive financial centre in the world, which means the city is now considered a global leader. Melbourne also saw its ranking vault into the top 15. All of this means it is a question of when not if Goldman brings its online bank and personal lending business to the Australian market.

Australians quick adopters of technology

Given the fact that Australians have expressed a real interest in fintech platforms, Goldman Sachs is likely to attract a fair amount of interest from potential banking customers when it makes the move down under. Australians have in the past shown that they are incredibly willing to adopt new technologies and should a new player enter the space, incumbents are likely to offer more competitive rates and better services in order to hold on to customers.

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