Goldman Sachs (GS) partners with capital markets technology company

In order to expand its transaction banking business, Goldman Sachs, Inc. GS partners with Derivative Path, which is a leading provider of capital markets technology and derivatives execution services to regional and community banks.

Through this collaboration, thousands of regional banks and US credit unions will be able to use Goldman Sachs foreign exchange services.

Although the financial terms of the agreement have not yet been disclosed, the partnership will enable Derivative Path customers to provide a more consistent end-to-end global payment solution to their underlying customers using the platform. Goldman Sachs transaction bank.

Art Brieske, Global Head of Payments for Goldman Sachs Transaction Banking, said: “Regional and community banks now have access to the same global payment capabilities as major monetary central banks. We are delighted to partner with Derivative Path to provide access to our global payment capabilities through their platform and provide regional and community banks with a complete, simplified and efficient cross-border payment solution.

Pradeep Bhatia, CEO and Co-Founder of Derivative Path, said, “Teaming up with one of the world’s largest and most established financial institutions is a major step in the right direction to bring greater technological sophistication and greater flexibility to the region and the community. banking industry in the United States. The launch of our joint solution with Goldman Sachs confirms our mission to provide a new wave of innovation to these companies.

Transaction banking means handling cash for governments and multinational corporations, from processing employee payroll to collecting from customers to securing exchange rates for payments sent to other countries.

The collaboration with Derivative Path is Goldman Sachs’ latest step to gain market share in the crowded and competitive $300 billion transaction banking industry it entered in 2019.

Business diversification has been the main source of earnings stability at Goldman Sachs. In traditional banking, a diversified product portfolio has a better chance of supporting growth than many other banks, which have abandoned some of these areas.

Goldman Sachs has undertaken initiatives to boost asset management and wealth management businesses, while expanding its consumer digital banking platform. The deployment of digital control facilities will enhance its consumer banking platform, while the acquisition of GreenSky will facilitate the expansion of its point-of-sale capacity.

By rolling out services in different regions, GS is strengthening its digital consumer lending platform – Goldman Sachs’ Marcus.

Over the past six months, shares of GS have lost 24.8% compared to the industry’s 23.6% decline.

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Currently, Goldman Sachs carries a Zacks Rank #3 (Hold).

A few higher-ranked stocks in the financial sector are S&T Bancorp, Inc. STBA and credit acceptance company CACC. Currently, STBA sports a Zacks Rank #1 (Strong Buy), while CACC sports a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

S&T Bancorp’s consensus earnings estimate for the current year has been revised up 5.4% in the past 60 days. Over the past year, STBA’s share price has fallen by 11.1%.

Credit Acceptance’s earnings estimates for the current year have been revised up 11.8% in the past 60 days. Shares of CACC have gained 4.4% over the past year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Laura J. Boyer