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Goldman (GS) Unveils Transaction Bank in the United Kingdom
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In an effort to enter Britain’s cash management services market and diversify into other arenas, The Goldman Sachs Group, Inc. (GS - Free Report) recently opened its transaction bank in the country. The Wall Street biggie will offer day-to-day treasury operation services such as payment processing and payroll, to different companies. It comes a year after the banking giant set up a division in the United States.
Since its inception, the American transaction bank has aggregated deposits worth $35bn and has processed trillions of dollars. It is hoped that the U.K. branch will be similarly lucrative. Markedly, Goldman Sachs had begun steering toward U.K. households in 2018 by launching its savings bank — Marcus — which had 50,000 customers signed up within its first fortnight.
Goldman Sachs's transaction banking global head, Hari Moorthy, said, “The growth of this business has exceeded our estimates and we are very excited to bring transaction banking to the UK to expand our client reach and streamline banking for multinational corporations with a presence in the US and the UK."
Goldman Sachs, alongside its rival JP Morgan (JPM - Free Report) , are increasingly targeting the U.K.’s lending market, trying to go up against current market leaders like HSBC Holdings plc (HSBC - Free Report) and Citigroup (C - Free Report) , which offer a wider spectrum of services to corporate clients. Goldman Sachs is counting on its digital cash management platform to entice clients currently using older systems at competing banks.
This move came onboard despite the U.S. banking giant being vocal critics of Brexit.
Bottom Line
Notwithstanding Brexit, U.S. investment banking giants seem to be of the opinion that the U.K. market still exhibits significant growth prospects, if only as a footing for further European expansion. Hence, the move is a strategic fit.
It is also in line with Goldman Sachs’ focus on business diversification, which has been the key source of its earnings stability. Within traditional banking, a diversified product portfolio has better chances of sustaining growth than many other banks, which have exited some of these areas. The stock has gained 39.4% over the past six months, outperforming the industry’s rally of 28.2%.
Image Source: Zacks Investment Research
Currently, Goldman Sachs carries a Zacks Rank #3 (Hold).
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Goldman (GS) Unveils Transaction Bank in the United Kingdom
In an effort to enter Britain’s cash management services market and diversify into other arenas, The Goldman Sachs Group, Inc. (GS - Free Report) recently opened its transaction bank in the country. The Wall Street biggie will offer day-to-day treasury operation services such as payment processing and payroll, to different companies. It comes a year after the banking giant set up a division in the United States.
Since its inception, the American transaction bank has aggregated deposits worth $35bn and has processed trillions of dollars. It is hoped that the U.K. branch will be similarly lucrative. Markedly, Goldman Sachs had begun steering toward U.K. households in 2018 by launching its savings bank — Marcus — which had 50,000 customers signed up within its first fortnight.
Goldman Sachs's transaction banking global head, Hari Moorthy, said, “The growth of this business has exceeded our estimates and we are very excited to bring transaction banking to the UK to expand our client reach and streamline banking for multinational corporations with a presence in the US and the UK."
Goldman Sachs, alongside its rival JP Morgan (JPM - Free Report) , are increasingly targeting the U.K.’s lending market, trying to go up against current market leaders like HSBC Holdings plc (HSBC - Free Report) and Citigroup (C - Free Report) , which offer a wider spectrum of services to corporate clients. Goldman Sachs is counting on its digital cash management platform to entice clients currently using older systems at competing banks.
This move came onboard despite the U.S. banking giant being vocal critics of Brexit.
Bottom Line
Notwithstanding Brexit, U.S. investment banking giants seem to be of the opinion that the U.K. market still exhibits significant growth prospects, if only as a footing for further European expansion. Hence, the move is a strategic fit.
It is also in line with Goldman Sachs’ focus on business diversification, which has been the key source of its earnings stability. Within traditional banking, a diversified product portfolio has better chances of sustaining growth than many other banks, which have exited some of these areas. The stock has gained 39.4% over the past six months, outperforming the industry’s rally of 28.2%.
Currently, Goldman Sachs carries a Zacks Rank #3 (Hold).
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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