Marcus by Goldman Sachs Applies Technology to a Long Legacy of Bringing Financial Expertise to Clients

ThemeS: Clients | Innovation

In 2016, Goldman Sachs launches Marcus by Goldman Sachs, an online platform offering personal unsecured loans and savings accounts to retail clients.

In 2016, Goldman Sachs acquired GE Capital Bank’s US deposit platform and integrated it with GS Bank USA, a deposit-taking institution the firm had established in Utah in 2004, creating a fully online savings bank for retail customers.  2016 also marked the launch of Marcus by Goldman Sachs (“Marcus”) as an online platform for offering unsecured consumer loans. Through Marcus, credit-worthy borrowers could apply for fixed-rate, no-fee personal loans of up to US$30,000 for periods of two to six years.

Goldman Sachs developed the offering based on extensive research and direct feedback from 10,000 consumers about common personal debt “pain points,” leveraging the firm’s core competencies in risk management and technology to craft a truly consumer-driven loan product. Some defining features of the Marcus offering included a fixed rate over the term of the loan (as contrasted with credit card interest rates, which can fluctuate unexpectedly), the ability for customers to choose payment dates that work with their cash flows, and a team of U.S.-based, dedicated loan specialists delivering live and personalized support.

Drawing on its risk management expertise and technological processes and resources, Goldman Sachs was able to launch Marcus within a year of its conception. Approximately one year after launching, in November 2017, Marcus hit the US$2 billion mark in loans. At that time, the firm integrated GS Bank’s consumer online deposit platform into Marcus. In April 2018, GS Bank acquired Clarity Money, a leading personal finance app, and welcomed Clarity’s more than one million customers to Marcus. Later that year, Marcus launched in the United Kingdom, offering a 1.5% rate on savings up to GB£250,000—the highest available rate in the market for such accounts.

From its beginnings as a simpler, more consumer-friendly alternative to credit card borrowing, Marcus continues to evolve toward Goldman Sachs’ vision of creating a leading online platform to enable millions of consumers to take control of their financial lives and make smarter financial decisions.