Goldman Sachs bats off competitors with first UK transaction bank
Goldman Sachs is set to appear in the UK after the Wall Street-based firm said today it has launched its £35bn transaction bank in the country.
The global investment bank expanded its transaction bank business after launching in the US last year, while it eyes steadier revenue sources beyond its investment division.
Goldman’s shares sank 3.50 per cent on the New York Stock Exchange on Friday, taking its stock price to 348.83p per share.
The bank will offer UK companies cash management services while it grows in its new financial market.
The transaction banking business has raked in over $35bn in deposits in the US, spread across 250 clients since June last year.
Goldman’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.”
The investment bank appears to be trying to branch out, as its competitors – like Citigroup and JPMorgan – offer a wider set of services to corporate clients.
It comes as JPMorgan confirmed last week its plans to buy digital wealth manager Nutmeg, which manages £3.5bn of assets.
While still subject to regulatory approval, the deal will bolster JPMorgan’s digital bank offering, under the Chase brand, which is planned for launch in the UK later this year.