Goldman Sachs to underpin new digital bank with Infosys tech
Goldman Sachs moves into retail banking with new digital bank, GS Bank. Infosys to provide tech.
Goldman Sachs has recently launched a new digital bank, GS Bank. It accepts deposits from consumers and institutional clients, starting from just $1.
Goldman Sachs is understood to be working with Infosys and its EdgeVerve division on this project, with the vendor’s e-Finacle platform as the underlying tech for GS Bank.
Infosys’ spokesperson provided a “no comment” to Banking Technology.
The bank is currently using a number of solutions from FIS at the front and the back office, including the Profile core banking system and FIS’s Virtual Back Office (VBO).
GS Bank is a New York State-chartered bank. It stems from the Goldman Sachs’ acquisition of the online banking business of General Electric, GE Capital Bank.
The deal was completed in April 2016. GE Capital Bank came with nearly $17 billion of deposits and 140,000 retail customers. The terms of the deal were not disclosed, but a person familiar with the matter was quoted in the press saying that the price was immaterial to Goldman Sachs.
More significantly, this takeover represents Goldman Sachs’ move into the retail banking space – a departure for the bank that has traditionally catered to the high net-worth segment.
Infosys in the US
Infosys is keen to gain a strong foothold in the US banking software market and is known to be bidding for a number of projects at regional and super-regional banks (with assets north of $20 billion).
Amit Dua, vice-president and regional head at Infosys, comments that the US banks want to “break the shackles of legacy outsourcers”.
The vendor already has two customers in the US. These are Discover Financial Services, which has replaced its legacy core banking platform supplied by Fiserv with Finacle; and Eastern Bank, which has ousted FIS’s channel banking platform in favour of e-Finacle.
Last year, Infosys also teamed up with Verizon, to offer the Finacle suite as a Software-as-a-Service (SaaS) model on Verizon Cloud. The offering is aimed at the US community banks and financial institutions.
