Barclays digital bank has set its sights on the US market challenging Goldman Sachs’s Marcus in the digital banking space.
Reported by the Financial Times, the London-based banking giant is looking to expand its digital capabilities oversees next year.
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Barclays digital bank will offer US consumers a current account. Moreover, in the US, Barclays has 13 million customers that can access credit cards, savings and loans.
The bank will leverage its UK knowledge and experience to boost its digital presence.
Speaking to the FT, head of cards and payments at Barclays International, Barry Rodrigues, stated:
“The more aspects of the relationship a customer has with us, the happier we are. 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.”
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By GlobalDataFintech competition
Currently, the biggest competition comes from the popular digital-only bank, Marcus. The challenger has had a roaring success in the UK after its launch in September 2018.
The bank disrupted the savings market with its easy-access account, paying 1.5% interest – a move that experts say will force the other high street banks to pay more.
Furthermore, the account is open to UK savers aged over 18 and customers can deposit from £1 to £250,000.
Since its launch, Marcus has attracted over 50,000 UK customers. Will Barclays be able to do the same?
The Barclays digital bank will face steep competition from other incumbents across the country. In addition, the digital-only space for banking in the US is not as fierce as it is across Europe.
However, the branch system is still going strong, with consumers more likely to bank online with their current provider.
CEO of Revolut, Nikolay Storonsky told RBI that the challenger also aims to take a large portion of customers with its launch in the US. The newly crowned ‘Unicorn’ has already completed US market research and will touch down in early 2019.
