Goldman Sachs is shifting its focus to mimic the likes of Apple, Amazon, and Google. The Wall Street bank is adopting a more digital approach, investing heavily in technology to improve its financial services. It aims to automate the investment banking process, reducing the need for human intervention. This strategy is expected to cut down on costs, improve efficiency, and increase profitability.
The bank’s new direction is a response to the changing landscape of the financial industry. Technology has disrupted traditional banking, with fintech startups offering innovative solutions and challenging the status quo. Goldman Sachs recognises the need to adapt and innovate to stay competitive.
The bank’s tech strategy includes the use of artificial intelligence and machine learning to automate trading and risk management. It’s also developing an online lending platform, Marcus, targeting consumers with good credit scores. This digital pivot is expected to reduce the bank’s reliance on revenue from trading, which has been dwindling in recent years.
While this is a significant shift for Goldman Sachs, it’s not the first Wall Street bank to embrace technology. J.P. Morgan and Bank of America have also invested in digital innovations. However, Goldman Sachs’ strategy is more comprehensive, aiming to transform the entire banking process rather than just specific areas.
Goldman Sachs’ move towards digitalisation reflects the broader trend in the banking industry. As technology continues to evolve, banks must adapt and innovate to stay relevant and competitive.
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