Goldman Sachs to start transaction banking operations in Japan

GOLDMAN Sachs Group is set to start transaction banking services in Japan, as chief executive officer David Solomon expands the business of managing cash flows for big companies.

The US bank will launch the operation in the world’s third-largest economy through Goldman Sachs Bank USA’s Tokyo branch, the company said in a statement on Wednesday (Apr 12). Japan is the first country in Asia where the firm offers the service, it said.

Goldman Sachs began the business of handling money for large companies in the US in 2020 and since introduced it to the UK, Germany and the Netherlands, in a bid to generate more stable revenue streams than volatile areas such as trading and investment banking. The number of clients has doubled to more than 450 since 2020, according to a company presentation.

The platform provides global companies in Japan with treasury services including cash management and cross-border payments into more than 160 countries, to help them manage accounts speedily and efficiently, according to the statement.

Goldman Sachs’s banking arm gained a license in 2021 from Japan’s Financial Services Agency for corporate cash management operations. The company has since been offering services including dollar settlements for Japanese companies overseas, according to a spokesperson. BLOOMBERG