Goldman Sachs recently launched Transaction Banking, an online banking service for large businesses that is more streamlined than traditional banks’ offerings; features include virtual accounts, quick account opening and predictive cash flow analytics; the annual corporate banking revenue opportunity is $80bn in the U.S. and up to $160bn globally; a handful of banks dominate the market today and according to Hari Moorthy, Global Head of Transaction Banking at Goldman Sachs it has not evolved since 1980; “These banks are using massive mainframe systems and lots and lots of people; it’s not atypical for a bank to have between 5,000 and 20,000 people in an organization that manages this, a huge operational staff and a huge technology staff all working on old-school technology,” he said to American Banker; the Goldman system was built entirely on the cloud using Amazon Web Services; Transaction Banking officially launched on June 6, and it now has 175 corporate clients; in five years, Goldman expects the transaction banking division to generate $1bn in annual revenue. American Banker.
