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Goldman Seeks Tokyo Banking Licence for Cash Management

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The Goldman Sachs Group (GS - Free Report) is seeking to obtain Tokyo banking licence before launching its global cash management business later in 2019, per an article by the Financial Times. With this licence, the company will be able to assist clients in receiving and making payments in yen — one of the most traded currencies in the world — along with pound, U.S. dollars and euros.

Further, Goldman is optimistic about its new corporate cash management platform. The service is expected to commence later this year, and is likely to help it achieve $100 million per year in cost saving. Further, the Wall Street biggie targets to launch the product with clients in 2020.

Through this innovative platform, Goldman aims to better serve corporate clients across the firm, including institutional client services and investment management.

Notably, by obtaining the banking licence, Goldman will be able to more effectively compete with other industry leaders like JPMorgan (JPM - Free Report) , Citigroup (C - Free Report) and HSBC Holdings (HSBC - Free Report) that have significantly expanded banking networks globally.

The move is part of CEO David Solomon’s major overhaul to diversify the company into more reliable and stable source of revenues such as consumer banking, wealth management for high-net worth clients and cash management.  

On that front, 2019 has been quite an active year for Goldman so far. In March, it launched a first ever credit card in partnership with Apple. Also, it bolstered ETFs sales by agreeing to acquire Standard & Poor's Investment Advisory Services LLC.

Also, rumors about its plans to acquire United Capital Financial Partners with a view to bolster private wealth management division have made rounds recently. The company at present offers services to the ultra-rich. However, post-acquisition, it would have exposure to affluent and high net worth clients as well.

Goldman’s efforts to improve financial performance through strategic initiatives seem impressive. However, persistent legal hassles pose a concern.

Shares of the company have lost around 4% in the past six months compared with 6.5% decline of its industry.

Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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