Goldman Sachs' digital-only challenger Marcus has signed up more than 250,000 UK customers less than eight months after launch:
report. However, Marcus' rapid ascent in the UK points to a long runway for new entrants into the country's retail banking industry.
And its latest figures highlight it's a much bigger threat. Despite neobanks' impressive customer acquisition, the road to profitability remains a way off, with these players struggling to make money. One reason for this has been an inability, as of yet, to convince customers to up their deposits, including directly from paychecks. For context, Monzo only had £71.
In the US, Marcus began with a consumer loans product before bolstering it with high-yield savings and money management tools. Given its success in the UK, the bank will only likely expand its proposition in the country, which should propel further growth, both in terms of customer numbers and balance sheet.
Incumbents in the UK and afar should take a leaf out of Marcus' strategy. Its market-beating interest rate is undoubtedly a big reason why Marcus has gained traction in the UK. It also highlights a crucial strategy for success: identifying genuine pain points for consumers. Coupling that focus with incumbents' existing advantage of deep resources and consumer trust remains a powerful combination.is driving a shift toward financial marketplaces.
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