Will Goldman Sachs TxB provide the impetus for transaction banks to embrace digitalization faster?

Will Goldman Sachs TxB provide the impetus for transaction banks to embrace digitalization faster?
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With a legacy spanning 150 years in the financial services industry, “our lack of legacy infrastructure in this new undertaking is a crucial advantage for us and a key differentiator relative to the rest of the industry” remarked Mark Smith, Head of Global Liquidity, Transaction Banking at Goldman Sachs. The bank rolled out its comprehensive cash management business to establish itself in the transaction banking industry, thereby introducing new choices for Treasurers

A digital experience from the word go!

\"\" Mark Smith, Head of Global Liquidity, Transaction Banking at Goldman Sachs

In an era of digitization, Goldman Sachs Transaction Banking (TxB) – the bank’s transaction services arm – unveiled its cloud-based treasury management solution in June this year. Understanding that the customer today seeks an agnostic approach to banking, GS TxB’s digital proposition is mindful of its clients’ expectations and aims to fill the current treasury gaps. Proof of this is how GS TxB sets up a digital profile for a potential customer at the very first introduction and discussion meetings. This set-up provides potential clients a personalized onboarding experience and establishes a  unique relationship. This further establishes how Goldman Sachs intricately weaves its digital proposition with its customer’s needs.

At the core of GS TxB is its treasury management solution’s unique proposition – ‘Virtual Integrated Account (VIA).’ While virtual accounts  are offered by multiple banks, Mark reiterates how VIA can transform treasury through “instant account opening and closure, flexible account structure creation, liquidity pooling and better reporting. GS TxB’s VIA solution is cloud hosted API driven and real time, thereby further differentiating itself other virtual iaccount offerings. Goldman Sachs built a technology enabled infrastructure combining its platform and products to offer a “single, global, real-time, API driven multicurrency solution suite completely hosted on cloud.” Emphasizing on the need for a consistent customer experience in transaction services, GS TxB’s user-interface empowers treasurers with a seamless banking experience. 

Getting the timing right!

Covid-19 left the world reeling with unprecedented changes.  Mark acknowledged how companies now have to increasingly consult with their treasurers to plan and manage cash and working capital better. A treasurer’s challenges such as visibility into liquidity positions, transparent costs related to transactions, the need for a platforms and interactive user-interface have exponentially grown in the pandemic. In addition to this, Mark emphasizes the need for rich data analytics and actionable insight – a crucial component of TxB’s offering. Reiterating the need for a consumer-centric approach, Mark comments “Goldman Sachs’ has built a consumer-grade experience with powerful features corporate needs. We built our products with a look to the future – we future-proof when we look at our product roadmap. Being on the cloud allows us to be nimble and to innovate quickly.”

Goldman Sachs rolled out its comprehensive cash management business to establish itself in the transaction banking industry, thereby introducing new choices for Treasurers

A clear goal and vision

Rolled out initially to Goldman Sachs’ American MNC clients looking for a differentiated experience, TxB’s team aims to deliver simple yet innovative solutions which span across, liquidity management, global payments and escrow services. With its approach outlined, TxB is poised to achieve its goal of $50 billion in deposit balances and $1 billion in net revenues in 5 years, with Mark commenting “We’ve designed a cutting-edge suite of innovative products that will drive a smarter, leaner treasury.  Finally, we’ve built a cognitively diverse team combining digitally-native talent with subject matter experts to understand Treasurers’ priorities, advise on industry trends and to bring clients solutions that will drive efficiency, transparency and treasury transformation.”

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>> Read more exclusive features about retail banking innovation and the digital banking landscape. Download the latest issue of The Digital Banker Magazine HERE.

 

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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