Goldman Sachs Launching Transaction Banking in Japan

Goldman Sachs said recently it is launching a transaction banking business in Japan, offering corporate customers in the world's No. 3 economy services such as deposits, cash management and cross-border payments.

The move comes as the global economic slowdown hits investment banks, driving some to push for new revenue streams. Goldman is aiming to win transaction banking mandates from a wave of companies in Japan over the next few years, including tapping those it already has close ties with through services such as advisory on mergers and acquisitions.

The financial giant recently completed development of a cloud-based business system, which it will use in its transaction banking services. Japan is the first place in Asia where Goldman is providing transaction banking.

Japan's megabanks and foreign banks such as Citigroup and JPMorgan Chase currently hold a large share of the country's market for corporate financial management and overseas corporate remittances. Goldman hopes to quickly ramp up its business in the area as its investment banking staff look to promote its new services.

Goldman has already started to receive inquires about the new business from major trading houses and technology companies making overseas investments. "Our goal is to win mandates from 100 companies within the next few years," said Masanori Mochida, president of Goldman Sachs Japan.

Goldman has no plan to launch retail banking in Japan.

(Source: Nikkei Asia)