GS Bank will soon be renamed to Marcus by Goldman Sachs. Goldman Sachs has recently been announcing this change to the media and to customers. The bank will remain the same, still an FDIC member known as Goldman Sachs Bank USA, but the brand name will be Marcus by Goldman Sachs instead of GS Bank.
The name Marcus by Goldman Sachs may not be familiar to savers. GS Bank launched Marcus by Goldman in October 2016 as an online platform offering personal loans. Since that time, Goldman Sachs has been pleased with how this Marcus brand has helped the firm’s reputation according to reports in the American Banker.
Where did the name “Marcus” come from? Marcus Goldman founded Goldman Sachs in 1869.
This latest name change continues Goldman Sachs’s recent efforts in building a successful retail bank. In April 2016, GS Bank acquired the online deposit platform of GE Capital Bank and assumed $16 billion of deposits. Last April, GS Bank issued a press release marking its one-year anniversary of its retail bank and announced it had grown online deposits by $4 billion. This name change along with GS Bank’s recent rate hikes are signs that GS Bank may want to see online deposits grow much more. The $4 billion is only a small percentage of GS Bank’s total deposits which total $106 billion as of June 30, 2017.
In addition to the name change, GS Bank informed customers of upcoming website enhancements. According to Business Insider, emails to customers mentioned improvements to mobile features, the addition of a chat service for better customer service and the roll out of tools to improve customers’ “financial wellness."
It’ll be interesting to see how successful Goldman Sachs’s online retail bank will be. This name change shows that they are being upfront about the bank’s connection to Goldman Sachs which still faces headwinds from all the bad publicity that it received in relation to the financial crisis of 2007-2008. In my opinion, most savers are more concerned with competitive deposit rates, good customer service and solid online banking features than with the controversial history of Goldman Sachs. Have you decided against opening an account at GS Bank due to Goldman Sachs’s history?