Will everyday Aussies soon be banking with Goldman Sachs?

Tuesday 12 September 2017

Article by Ben Tosi

Aussie banks are on notice after news that global investment bank Goldman Sachs is planning to enter the UK market with a high-interest online savings account next year.

Aussie banks are on notice after news that global investment bank Goldman Sachs is planning to enter the UK market with a high-interest online savings account next year.

In an interview with the Financial Times, Goldman Sach’s Head of Strategy, Stephen Scherr revealed that the banking powerhouse is looking to increase its global influence in online, personal banking with a British excursion.

“Much like in the US, we’re aiming to offer consumers easy-to-use and higher-returning savings options than [they] might have elsewhere,” said Scherr.

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Traditionally thought of as a bank for the super rich, Goldman Sachs began offering online savings account for those with as little as US$1 early last year and followed this initiative up by offering unsecured personal loans for US customers under its brand name, Marcus.

Goldman’s upcoming incursion into the British market comes as FinTech Australia announced Sydney as the eighth most attractive financial centre in the world, according to the latest Global Financial Centres Index.

The ranking means Sydney is now considered a “global leader” with Melbourne also jumping eight places to be ranked within the top 15, begging the question: will Goldman bring its online savings accounts and personal loans into the Aussie market?

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Considering Aussies have shown a real interest in fintech platforms, Mozo’s Product Data Manager, Peter Marshall believes that Goldman Sachs would certainly have some pull over banking consumers if they were to make the move down under.

“Australians consistently show how willing they are to adopt new technologies and any potential new, online players, like this, would mean banks would need to offer more competitive rates and more innovative services to hold onto their customers,” said Marshall.

Last month a host of lenders made cuts to interest rates on savings accounts including market leader, ME Bank which cut its ongoing bonus savings account rate by 10 basis points to 2.95%.

Mozo’s quick tips to maximise your savings account return:

  • Make regular deposits: The more money in your account, the more money you will be making in interest.
  • Be aware of the terms: Regular deposits or no withdrawals are often conditions to earn the bonus rate.
  • Set up automatic payments: Make sure you’re not leaving any unnecessary cash in a transactional account where it will be earning little or no interest.

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