Goldman Sachs Group Inc. is planning to launch a cash management service in the first half of 2020, Reuters reported, citing "two people familiar with the plan."
Goldman Sachs will offer to pay existing multinational corporate clients more on their deposits if they sign up for its cash management services, Reuters said. Through the service, the bank is looking to earn fees and gain an expanded client base for its foreign exchange business.
The investment bank is six months into building the required technology for the service and has already begun its hiring of cash management compliance, technology and legal professionals, according to the report. Goldman reportedly plans to move its deposits from other banks onto its own cash management platform later in 2019.
Citigroup Inc., JPMorgan Chase & Co., Bank of New York Mellon Corp., HSBC Holdings PLC, Standard Chartered PLC and Deutsche Bank AG are among banks that currently dominate the market for wholesale payments and cash management business, Reuters noted.
The Wall Street Journal reported back in April 2018 that Goldman Sachs was looking to make a foray into commercial banking and had hired former JPMorgan executive Hari Moorthy to design new commercial banking products.