Goldman Sachs launched its new US transaction banking offering in June.
Following the launch of its consumer brand, Marcus, in 2016, the move is the latest of the firm’s new initiatives to target big pools of revenue in markets where it does not need to capture commanding share to grow a profitable business quickly.
This is all part of a drive to attract operating deposits to lower the bank’s own cost of funds.
Goldman has been working on the initiative for some time. It had taken roughly $500 billion of its own operational flows and brought them onto its own platform by the end of 2019.
It stated at the end of last year that the expectation was to have third-party customers and clients of the firm on the platform in 2020.
By June, all clients signed up so far were existing Goldman customers.
“We started working on this two years ago. There was clearly an opportunity for a new entrant, but what form would it take?” explains Eduardo Vegara, global head of product and sales for transaction banking, who joined Goldman from California-based Silicon Valley Bank.
It is quite clear, he says, why the business had room for a new competitor.
“When we talked to clients, we heard a lot of dissatisfaction with existing