Goldman Sachs has reopened its cloud-based retail bank in the UK after suspending the account temporarily to avoid complying with.
The investment bank’s online offering, Marcus, was. It is another example of a traditional bank offering to keep pace with digital banking trends.
In December 2019, the bank initiallyaccounts after high demand from savers meant deposits likely exceeded £25bn, the threshold at which UK banks have to ring-fence their retail operations to keep them separate from investment banking arms.
It then suspended the Online Savings Account last summer amid. “We temporarily withdrew our in demand from savers,” said a spokesperson at the bank.
Goldman Sachs’s decision to slow the take-up of Marcus reflects theconsumers and the venture’s ability to increase through modern technology.
The bank announced thisthat the account was once again available after changes in the market. “Conditions in the savings market have changed, and we can make our available again to new customers, in line with our business plan,” it said.
The account currently has £21bn in deposits, with the capacity for more before the £25bn ring-fencing threshold is hit. “Wevery carefully,” said the spokesperson.
After the global financial crisis of 2008, which was caused by failures in the big banks’ investment banking operations, regulators instructed UK banks to introduce a. Banks had to . It was introduced in 2011, and banks had to comply by January 2019.
The legislation was designed to prevent thebanks from affecting consumer savings and current accounts after the fallout of the 2008 global financial crisis.
Goldman Sachs and other large traditionalbanks to run separately from their traditional organizations. They have adopted the same IT development techniques as the new banks, such as . These units are better placed to compete with digital-first challenger banks, including those that are app-based.
Speaking at an AWS event in 2019,, said that Marcus had 600 times more customers applying than expected in the first hour of its launch.
Using AWS, the Marcus platform was built in the UK, end to end, in just 11 months. Hannaford said this would have been unthinkable in theby provisioning its hardware, which alone would have taken five months.
Using theto launch new products enables banks to scale up operations rapidly, removing limits to transaction volumes.JP Morgan Chase is another example of a traditional US bank bank in the UK. It recently announced that it had recruited 400 staff in the UK to work for the bank, which will . The digital UK bank, based in Canary Wharf in London, will offer , including current accounts.