[GS:] “This is the financial cloud for corporates… The possibilities of what we could do here are practically limitless.”
Goldman just released software that allows clients to embed banking services into their own products. The strategy could help Goldman jumpstart its push into transaction banking, which has lagged consumer technology in ease of use…
Decades late to the global cash management industry ruled by Citigroup and JPMorgan Chase, Goldman hopes to leapfrog rivals by offering a fresh approach to corporate bank accounts and cross-border payments. After building a new cloud-based system for accounts and payments, Goldman is publicly releasing software known as APIs to allow clients’ programmers to build on top of the bank’s platform.
[GS:] “We are trying to create a new industry by integrating our services into their businesses so they can cater to their clients as if we had them… Imagine a technology company that can use these APIs to create a solution for payments or deposits in concert with whatever else they currently provide to that client.”
The approach, dubbed banking-as-a-service, is inspired by what Amazon has accomplished with its cloud business. Just as Amazon enabled a generation of businesses to tap into cheap computing power, Goldman’s wager could spur the proliferation of digital wallets and seamless payments throughout the corporate and consumer realms.