Goldman Sachs Looking to Offer Corporate Treasury Services

According to the Wall Street Journal Goldman Sachs is going after yet another new line of business: corporate treasury services; Citigroup is the market leader in the space and reportedly earned $10.2 billion in treasury services last year; Goldman Sachs is starting from zero but it is betting a clean-sheet approach will cut costs and improve the product; the company has set a target of $1 billion in revenue from this new division by 2025; treasury functions still rely on paper trails and Goldman Sachs think it is ripe for disruption; they have been operating in stealth mode since last July and have already amassed 175 corporate clients and $20 billion in deposits with a team of 375 people; there are many parallels to their consumer banking business in Goldman’s approach to this new initiative. Wall Street Journal