(26 February 2019 – Global) Goldman Sachs has started filling out its fledging cash management business as the bank looks to diversify.
The Financial Times is reporting that the Wall Street bank has already recruited 100 staff for the new unit, a third of the initial 300-person target which was announced in January.
Goldman is specifically aiming to win revenues from Citigroup and JPMorgan Chase as it moves away from its traditional base of investment banking fees and trading.
When announcing the new venture in January, Goldman pledged to use cutting-edge technology to tackle “pain points’ its investment bank clients encounter with traditional providers of services to handle payments and surplus cash.
Cash management also offers Goldman access to a new funding source — clients’ operating deposits — which is cheaper than the wholesale money that makes up 60 per cent of Goldman’s existing funding base.