Goldman (GS) Expands Transaction Banking Presence in the EU

Napoleon Elizer

Goldman Sachs GS expands its transaction banking business to the European Union (EU). The footprint expansion will strengthen Goldman’s relationships with existing clients in the EU and aid the wall street biggie in serving new clients across the region.

GS has offered capital markets, financing, trading and transaction advisory services in Europe. Hence, the expansion increases the breadth of the firm’s offering.

The transaction banking platform, known as TxB, was launched in the United States in 2020 and was extended in the U.K. last year. To date, the platform has done business with more than 400 clients, processed trillions of dollars through its systems and accepted more than $65 billion in deposits.

The company has further expanded in new markets and will start from a new location in Frankfurt. It also plans to expand to Amsterdam. This will enable GS to serve clients’ treasury needs like deposits and payments in more than 160 countries and 120 currencies.

TxB’s digital-first and cloud-based global platform offers clients visibility into their accounts, payments and liquidity positions across currencies and countries.

Per management, “We are excited to bring the Goldman Sachs Transaction Banking experience to clients with treasury needs in the European Union. We understand the challenges of running a complex global treasury operation, and built our platform to be nimble, secure and easy-to-use to support clients as they run and grow their businesses.”

The expansion will further diversify the company’s business and revenues. It is in line with Goldman’s efforts to diversify the business mix toward more recurring revenues and durable earnings. GS has been undertaking initiatives to boost asset management and wealth management business, while expanding its digital consumer banking platform.

The GreenSky acquisition will facilitate the expansion of its point-of-sale capability. In February 2021, the company launched an automated wealth-management platform called Marcus Invest to expand the suite of consumer financial offerings within its digital consumer lending unit.

Goldman expanded GS Bank’s business by acquiring an online deposit platform from GE Capital Bank in April 2016. Goldman also launched a digital consumer lending platform — Marcus by Goldman Sachs — which it has been bolstering by rolling out its services in different regions.

Over the past year, shares of GS have lost 14% compared with a decline of 9% of the industry.

 

Goldman (GS) Expands Transaction Banking Presence in the EU
Image Source: Zacks Investment Research

 

GS carries a Zacks Rank #3 (Hold) at present.

Expansion & Business Diversification Moves by Other Companies

Last month,BlackRock, Inc. BLK launched a spot bitcoin private trust for institutional clients in the United States. The fund seeks to track the performance of bitcoin, with fewer expenses and liabilities of the trust.

Through the partnership, BLK’s institutional clients will have access to crypto trading, custody, prime brokerage and reporting via Coinbase Prime, which is the exchange’s institutional platform, providing a wide range of features and tools.

Credit Suisse Group AG CS is preparing to fully own its securities joint venture in China. Credit Suisse entered an agreement to buy its local partner, Founder Securities’ 49% stake in Credit Suisse Founder Securities for 1.14 billion yuan ($163.92 million), following which CS will have complete control of its onshore securities venture.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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