According to the Wall Street Journal Goldman Sachs is going after yet another new line of business: corporate treasury services; Citigroup is the market leader in the space and reportedly earned $10.2 billion in treasury services last year; Goldman Sachs is starting from zero but it is betting a clean-sheet approach will cut costs and improve the product; the company has set a target of $1 billion in revenue from this new division by 2025; treasury functions still rely on paper trails and Goldman Sachs think it is ripe for disruption; they have been operating in stealth mode since last July and have already amassed 175 corporate clients and $20 billion in deposits with a team of 375 people; there are many parallels to their consumer banking business in Goldman’s approach to this new initiative. Wall Street Journal
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.