FILE PHOTO: David M. Solomon, President and Chief Operating Officer, Goldman Sachs, speaks at the Milken Institute’s 21st Global Conference in Beverly Hills, California, U.S. April 30, 2018. REUTERS/Lucy Nicholson/File Photo
NEW YORK (Reuters) – Goldman Sachs Group Inc Chief Executive Officer David Solomon said on Tuesday the bank aims to boost the number of mid-size corporate clients it serves over the next few years.
Goldman Sachs’s investment bankers and corporate banking divisions have long managed relationships with some of the world’s largest companies, Solomon said. But as the U.S. investment bank develops more corporate services, like cash management, it has sought to sell them to a broader group of clients.
“There are lots and lots of companies with (enterprise) value at $500 million to $3 billion,” Solomon said at a conference hosted by Credit Suisse Group AG in Florida. “There’s real … expansion opportunity for the firm … to open the aperture of corporations that we bring Goldman Sachs to.”
Starting last year, the bank began developing a technology platform to handle corporate clients’ cash payments and receipts of money around the world. Goldman will launch the product in 2020, with itself as the first client.
Since taking the helm at Goldman in October, Solomon has overseen a review of the bank’s businesses to identify areas where it can grow to reach a goal of generating $5 billion in new revenue.
Goldman’s scale as a global bank means that strategies like adding more small and mid-sized corporate clients or launching corporate cash management services can add “a couple of million dollars of revenue” at only a moderate cost to the bank, Solomon said.
“You can move the needle over a period of time with reasonable investments.”
Reporting By Elizabeth Dilts; Editing by Bernadette Baum