Goldman taking it seriously, are you?

Image source: Financial Times

The firm has released software that allows clients to embed banking services into their own products as part of a push to break into the $32 billion a year industry managing cash for big corporations, according to Hari Moorthy, Goldman’s global head of transaction banking.

I think it was a fact the big corporate banks such as Goldman will make moves in this direction sooner or later.

If we look at corporate banks most of them still rely on hard-to-use systems let alone other companies integrate into those systems.

What Goldman is doing now 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.

“This is the financial cloud for corporates,” Hari Moorthy said. “The possibilities of what we could do here are practically limitless.”

And he is right. I personally am using one such Banking-as-a-service API services in the UK and you know what it is so easy and fast that to integrate I do not even think how and where it is connected to.

Above I mentioned that big corporate banking still relies on old systems, however, with API services now it doesn’t matter much.

Think about it, connecting directly into Goldman’s corporate platform, open accounts quickly, and take advantage of the bank’s automated payments programs, which it created for itself as its first client.

However, this time it si much faster and much easier through the company’s newly released APIs. Less hustle, less headache.

“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,” Moorthy said in a phone interview. “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.”

So, Goldman Sachs wants to help any company in the world become a bank.

I believe this is another step on the way to embedded finance.