Goldman Sachs Group Inc (GS.N) has hired a senior executive from Wells Fargo & Co (WFC.N) to lead its transaction banking business, according to an internal memo seen by Reuters on Tuesday.
A strategic move to expand transaction banking
Goldman Sachs launched its transaction banking unit in June 2020, offering digital cash management and payment services to corporate clients. The business is part of the bank’s strategy to diversify its revenue sources and reduce its reliance on volatile trading and investment banking activities.
The bank said it has signed up more than 250 clients and processed over $35 billion in cross-border payments since the launch of the unit. It also said it has hired more than 300 employees across sales, product, engineering, and operations to support the growth of the business.
A seasoned leader with extensive experience
The new head of transaction banking is Lisa McGeough, who joins Goldman Sachs from Wells Fargo, where she was the head of international banking. She has over 30 years of experience in the financial services industry, spanning various roles and regions.
McGeough will report to Tucker York, the global head of the consumer and wealth management division, and Harit Talwar, the head of digital finance, according to the memo. She will also work closely with Eduardo Vergara, the head of global markets and investment banking for Latin America, who oversees the transaction banking business in the region.
McGeough will be responsible for leading the global strategy, product development, and client delivery of the transaction banking unit, as well as building partnerships with other businesses and divisions within the bank.
A competitive landscape with growing opportunities
Goldman Sachs faces stiff competition from other banks in the transaction banking space, such as JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N), and Bank of America Corp (BAC.N), which have long-established relationships and networks with corporate clients.
However, the bank also sees growing opportunities to leverage its digital capabilities, global reach, and expertise in serving complex and sophisticated clients, especially in the areas of cross-border payments, liquidity management, and data analytics.
The bank said it aims to attract $50 billion in deposits and generate $1 billion in revenues from its transaction banking business in the next few years.
