Barclays (LON:BARC) is launching a US current account which will put it in competition with Goldman Sachs’ Marcus, the Financial Times has reported. The news comes ahead of the blue-chip lender’s third-quarter results on October 24.
Barclays’ share price has fallen deep into the red in London in today’s trading, having given up 1.30 percent to 162.86p as of 09:57 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.45 percent lower at 6,964.20 points. The group’s shares have given up about 14.4 percent of their value over the past year, as compared with about a 7.4-percent dip in the Footsie.
Barclays to launch new account
Barry Rodrigues, head of cards and payments at Barclays International, told the Financial Times that the lender would “leverage Barclays’ UK knowledge and expertise” to create a current, or checking, account for its US online bank, which already offers credit cards, savings and loans to 13 million customers. He explained that Barclays’ pitch was very similar to Goldman Sachs’ Marcus in that “we do believe that there’s a good value proposition [...] on the digital banking side”.
While he did not give a target for how many current account customers Barclays hoped to attract, the newspaper notes that its initial target market will be the 10 million customers in the blue-chip lender’s co-branded credit cards, and the three million in its existing digital bank.
Analysts on London-listed lender
Deutsche Bank, which rates Barclays as a ‘buy,’ set a price target of 240p on the shares last week. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 228.88p.