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The Markets
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Banks

Barclays takes on Goldman Sachs with plans to launch digital retail account in US

Banks are trying to compete with Goldman Sachs' retail bank Marcus in the US and the UK

Barclays PLC (LON:BARC) is planning to launch a low-cost digital-only retail account in the US to challenge Goldman Sachs Inc’s (NYSE:GS) new Marcus brand.

Barry Rodrigues, head of cards and payments at Barclays International, told the Financial Times the lender would create a current, or checking, account for its US online bank.

The US online bank already offers credit cards, savings and loans to 13 million customers.

READ: RBS launches 1.5% savings rate to match Goldman Sachs's new UK retail bank

“We’re going to launch checking, we’re in the process of doing the build and we’re doing some testing…We expect to have that in the market next year,” Rodrigues told the newspaper

Goldman Sachs launched Marcus, a digital retail bank named after the group’s co-founder, in the US in 2016 before rolling out the brand in the UK with a savings rate of 1.5% on up to £250,000.

Last week Royal Bank of Scotland PLC (LON:RBS) said it would raise its savings rate on its instant access savings account to 1.5% up to the first £10,000.

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