Goldman Sachs to launch transaction banking in the UK

Goldman Sachs is set to launch its transaction banking business in the UK.

The division will offer UK companies cash management services.

The move comes amid a wider shift by the New York based firm to diversify away from its traditional investment banking focus.

Goldman’s transaction banking business, which launched in the US in June last year, has reportedly attracted over $35 billion in deposits and 250 clients.

The investment bank’s shares fell 3.50 per cent in New York Stock Exchange (NYSE) trading on the news.

Goldman reported net revenues of $44.56 billion and net earnings of $9.46 billion for the 2020 financial year, its strongest results in a decade.

Goldman is not the only major US bank to recently announce a UK expansion; JP Morgan acquired digital wealth manager Nutmeg earlier this month.

Goldman’s retail banking arm Marcus recently launched a mobile app for its UK users, three years after it first offered a savings account in the UK in 2018.

“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,” said Hari Moorthy head of Goldman’s global transaction banking division.

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