Goldman Sachs has partnered with card issuing startup Marqeta to build the U.S. bank’s Marcus checking accounts set to launch this year, the companies said on Thursday, Trend reports with reference to Reuters.
The bank, an investor in California-based Marqeta, hopes that the partnership will enable it to create more personalized and feature-rich digital banking services for its customers, it said.
Launched in 2016, Marcus has allowed Goldman to diversify its revenue and funding sources by offering savings accounts and personal loans to retail customers. Until then, the bank had operated largely as an investment bank and trading house, relying on money from the wholesale market.
Goldman, which had amassed more than $96 billion in consumer deposits through Marcus as of September 2020, has been investing heavily in its retail business. It bought a personal finance app in 2018, launched a credit card with Apple Inc in 2019 and has been offering lucrative savings rates to draw in more customers.
It launched an app for Marcus a little over a year ago, finally meeting demand from frustrated smartphone users who had to view account information, make loan payments or balance transfers on the bank’s website.
Marqeta’s clients include well-known digital payments companies like Square Inc and Klarna. Its platform has become popular with young tech-savvy financial companies, as it claims its technology makes it easier for fintech software developers to build new products and services.
Marqeta, whose backers also include Mastercard Inc and Visa, has seen business boom this year, with COVID-19 lockdowns leading to a surge in demand for digital payments.