- Goldman Sachs co-CIO Marco Argenti recently sent out a memo to staff with plans for creating a “financial cloud” for customers
Goldman Sachs co-CIO Marco Argenti recently sent out a memo to staff with plans for creating a “financial cloud” for customers that could be “transformational” for the business over the next few decades. Argenti is the right executive to take on this ambitious task as he had worked at Amazon Web Services for six years prior to joining Goldman in October.
“In the same way Amazon Web Services (AWS) was conceived, both as an internal product to streamline Amazon.com’s operations and as an external product to offer the same benefits to any company facing similar issues, our core technology services can be externalized to other financial institutions,” wrote Argenti.
Argenti pointed out that its risk analytics platform Marquee is an example of a core technology that was built for internal use that could be spun out for use by its customers as a building block for the financial cloud.
“Goldman Sachs is well-positioned to be the leader in creating and offering the first global ‘financial cloud’ to institutional, corporate and consumer clients,” Argenti added in the memo. “That is an opportunity that can be transformational to the firm’s business for decades to come.”
“As increasing customer requirements, regulations, and scale put more pressure on companies to increase their technology investment in order to remain competitive, we believe that there is an opportunity to externalize some of our services in the form of a financial cloud and turn engineering investments from costs into revenue streams,” explained Argenti.
One of the ways in which Goldman Sachs would build up its financial cloud is by hiring developers. Last year, Goldman Sachs’ chief technology officer Atte Lahtiranta pointed out that the company is heavily focused on bringing in outside developers.
Goldman Sachs is not the only major financial player ramping up its cloud efforts. Bank of America CEO Brian Moynihan recently revealed that the company is saving $2 billion per year by building its own cloud.
Read More On Pulse 2.0
– How Goldman Sachs Plans To Ramp Up Its Wealth Management Business
– Goldman Sachs Names Alternative Investments Group Heads
– Goldman Sachs CEO David Solomon: Ambitious Growth Plans Will Require Patience
– David Solomon: Goldman Sachs Earmarks $750 Billion For Sustainability
– Goldman Sachs May Deploy A Robo Advisor Soon
– Goldman Sachs CEO David Solomon: Marquee Platform Migrating To AWS
