Goldman Sachs is set to roll out a stocks and shares ISA to rival the offerings of Hargreaves Lansdown and AJ Bell.
The bank's plan to launch the tax-free investment account marks the latest expansion of Goldman's consumer bank Marcus, which was launched in the US in 2016 and began offering savings accounts in the UK last year.
Marcus has amassed more than $50bn in retail deposits, including $12bn in the UK, by offering competitive interest rates.
The latest move will be key to raising revenues and diversify Goldman's source of funding; most of the money is used to fund Goldman's investment banking activities, the FT has reported.
As banks in the UK that hold more than £25bn in customer deposits over the long term are required to legally separate their retail and investment banking operations, the ISA will generate fees but the customers' money held in the investments will not count towards the £25bn deposit threshold, according to the FT.
If Marcus hits the threshold, Goldman would have to comply with the UK ring-fencing legislation.
The ISA is thought to be in its early stages and it is unclear whether it will be ready for the next ISA season.
The UK's retail investment market has exploded in recent years, with assets held by platforms doubling to £500bn between 2013 and 2017, according to a recent review by the Financial Conduct Authority. Goldman declined to comment.
This article was first published by Investment Week, a sister title to International Investment.