Goldman Sachs Investment ISA

I doubt this’ll have much of an impact on the challenger stockbrokers (Marcus doesn’t seem to have for the challenger banks) but this could be pretty significant for the incumbents like Hargreaves Lansdown & Interactive Investor. If GS can replicate the success of Marcus in this space then they’ll attract a lot of customers pretty quickly.

More details in the FT.

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I wonder if that’s why Marcus launched with market leading interest rates, to draw people into the investing products eventually?

The ISA is thought to be in its early stages and it is unclear whether it will be ready for the next ISA season.

Be interesting to see what they come up with

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It’s cheaper to win customers from cash savings into investment products than investment provider switching. With savings accounts switching being (relatively) cheap for businesses this could be the bigger plan.

I wouldn’t be surprised if they are attracting users with a proposition they already know and “get” before pushing them into higher margin solutions where they can lock in a bigger share of wallet.

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