Goldman Sachs on course to launch cash management

Goldman Sachs on course to launch cash management

Goldman Sachs Group Inc is considering paying big multinational corporations more for their deposits than other banks as it paves the way for its entry into a mundane but prized business: managing cash. The global investment banking powerhouse and fifth-largest U.S. bank, which is six months into building the required technology, aims to start the service in the first half of 2020, according to two people familiar with the plan. They agreed to discuss internal strategy on the condition they not be named. The bank, which will earn fees and gain a captive client base for its foreign exchange business, could offer existing corporate clients more on deposits if they sign up for Goldman’s cash management services, a person familiar with the plan told Reuters.

Long considered a low-margin, utility-like service, the wholesale payments and cash management business generated about $250 billion in global revenue in 2017 for big banks, according to management consulting firm Oliver Wyman. The steady stream of income has grown more attractive to banks that have been shifting away from volatile areas such as trading and investment banking in the aftermath of the financial crisis a decade ago. Citigroup Inc, JPMorgan Chase & Co, Bank of New York Mellon Corp, HSBC Holdings PLC, Standard Chartered PLC and Deutsche Bank AG currently dominate the market, handling corporations’ payments and receivables across different regions.

As Goldman seeks to grow stable revenue by adding a cash management service for clients whom it already offers hedging and strategic advice, the investment bank further evolves to match rival universal banks’ range of businesses. Goldman Sachs is about half way to a goal management set in 2017 to generate $5 billion more in annual revenue by next year, largely by boosting reliable, feebased businesses. However, rivals privately scoff at the idea Goldman can gain significant market share in a business where contracts often last five years, clients tend to stick with their banks and a global network of banking licenses greases the wheels.

“The regulatory and operational costs of building a global cash management platform will be very steep and will take many years to achieve the scale that will justify the costs,” said a senior commercial banker at a large European bank. “Large multinational companies are consolidating number of banks they deal with, and they don’t tend to switch service providers frequently for functions like facilitating payments and managing payrolls.”




Serena outslugs Halep

Serena outslugs Halep

A fired-up Serena Williams slugged past world number one Simona Halep yesterday as she inches ever closer to a 24th Grand Slam title, while Novak Djokovic survived a battle to stay on course for a record seventh Australian Open crown.

Wall for ‘Dreamers’

Wall for ‘Dreamers’

US President Donald Trump bitterly attacked top Democrat Nancy Pelosi yesterday after she rejected a deal on immigration and the Mexico border wall that would end a 30-day-old government shutdown. Pelosi, speaker of the House of Repres

Serena, Djokovic in charge

Serena, Djokovic in charge

Serena Williams stepped up her drive for a record-equalling 24th Grand Slam yesterday by swatting aside Eugenie Bouchard, as world number one Novak Djokovic won an emotional 2008 Australian Open final rematch with Jo-Wilfried Tsonga. B

Federer, Nadal stay on track

Federer, Nadal stay on track

Roger Federer ground out a tough three-set win to make the Australian Open third round for an incredible 20th straight year yesterday, with long-time rival Rafael Nadal also safely through in his drive towards an 18th Grand Slam title.

Only Japanese-born sumo champ retires

Only Japanese-born sumo champ retires

The only Japanese-born grand championor “yokozuna” in sumo has decided to retire following a disastrous run of form and injury, leaving two Mongolians on top of the ancient sport. Kisenosato, the first Japanese-born wrestle


Social worker dies in Chennai

Social worker dies in Chennai

Long-time Bahrain resident and Indian social worker T P Abdulla, 71, passed away in Chennai, India yesterday. He was working with Bahrain Disabled Sports Federation as programme co-ordinator. Funeral will take place in Chennai today. He is survived by his wife Fatima and four chil

Busaiteen pays tribute to HRH Premier

Busaiteen pays tribute to HRH Premier

A ceremony was held in Busaiteen, Muharraq, in tribute to His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa, who recovered after undergoing successful medical check-ups. Traditional Ardha shows, folkloric songs and other activities were staged at the celebration, in t

Syria co-operation vow

Syria co-operation vow

Russian President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan at a meeting in Moscow yesterday vowed to co-ordinate their actions more closely in Syria.  “Co-operation between Russia and Turkey is a touchstone for Syrian peace and stability,” Erdogan s

Salaries ready for VRS first batch candidates

Salaries ready for VRS first batch candidates

The President of the Civil Service Bureau (CSB), Ahmed Al Zayed, yesterday announced that the CSB will efficiently transfer the salaries of the Voluntary Retirement Scheme (VRS)’s 773 successful candidates who are transitioning to retirement on January 31. Mr Al Zayed went on noting

Nadal relentlessly marches on

Nadal relentlessly marches on

Rafael Nadal continued his relentless march towards an 18th major title yesterday as an emotional Petra Kvitova swept into her first Grand Slam semi-final since a terrifying knife attack almost ended her career. On day nine of the Aust

BIC set to host Neon Run

BIC set to host Neon Run

Bahrain International Circuit (BIC) is set to host on Friday the much-anticipated BIC Neon Run, held as part of the promotional campaign for the Formula 1 Gulf Air Bahrain Grand Prix 2019. The event is scheduled to be held from 3pm to

Alaina, Hopkins end engagement

Alaina, Hopkins end engagement

Singer Lauren Alaina and partner Alex Hopkins have called it quits. The country star and her beau, who got engaged over last summer, announced they were ending their six-year relationship on their respective Instagram accounts on Monda

Misbah-ul-Haq to visit school

Misbah-ul-Haq to visit school

Misbah-ul-Haq,former Pakistani cricketer who captained the Pakistani team in all three formats of the game, is visiting the British School of Bahrain(BSB) on Thursday. He will hold cricket sessions with students at 8.15am which will be

Tokyo airport tests driverless bus

Tokyo airport tests driverless bus

Visitors pouring into Japan’s Haneda airport for the Tokyo Olympics next year may find themselves ferried to and from planes on driverless buses, currently being tested at the major hub. Six Japanese firms, including national car