Goldman Sachs experienced a major shock when trading revenue fell by 32%, or $18 billion. In fighting to regain their footing, they are capitalizing on their deep experience and contacts throughout global industry. Goldman is forming an Innovation Lab, that will focus on providing advice and consulting to companies involved in a variety of multi-faceted transactions, such as mergers and acquisitions, assessment, and more.
They have had more success marketing services based on insider knowledge of industries through their core business in IPOs, stocks, and financing
The Innovation Lab makes use of their most unique asset, highly-experienced and skilled personnel who are leaders in global finance in almost every sector. In fact, insiders jokingly refer to it as the “Brain Trust.”
They intend to assist companies like SoftBank Group Corporation and Berkshire Hathaway Incorporated. Goldman Sachs deal makers James Morris and Brian DeCenzo are expected to lead the group. They believe that project could generate $5 billion annually.
Competitors to Innovation Lab
According to analysts, insufficient effort and dated trading technology are to blame for the downfall of Goldman Sachs. They have had more success marketing services based on insider knowledge of industries through their core business in IPOs, stocks, and financing.
Goldman certainly has the experience, but there are a number of able competitors vying to take the number one spot in the banking industry, to name a few:
UBS Group AG – Simply referred to as UBS, this Swiss global company offers investment banking, asset management, and wealth management services to institutional, corporate, and private businesses. Established in 1862, the company has Sergio P. Ermotti as their CEO. They have a projected annual revenue of $28.9 billion.
Citigroup, Inc. – Citigroup, also known as Citi, was established after Travelers Group and Citicorp merged in 1998. The multinational company provides institutions and consumers a range of financial services and products. Located in New York City, Citigroup is headed by Michael L. Corbat, and the company has an estimated revenue of $123.7 billion.
JPMorgan Chase & Co. – Headed by Jamie Dimon, JPMorgan Chase & Co. is a financial service firm that delivers research, banking, investment, finance, and insurance to different businesses. The company has a projected revenue of $98.2 billion.
Deutsche Bank AG – The German banking company provides investment and financial services. John Cryan is the CEO of the company, which now has an estimated revenue of $32 billion.
Credit Suisse Group – The Swiss multinational holding company provides wealth and asset management solutions to different businesses. Credit Suisse has four divisions: Shared Services Group, Private Banking, Investment Banking, and Asset Management. Tidjane Thiam is the CEO of the company which now has a projected revenue of $22.4 billion.
Morgan Stanley – Morgan Stanley is the number one global financial services company that specializes in investment management, institutional securities, and wealth management. James P. Gorman is the CEO of the company, and they now have an estimated revenue of $36.2 billion.
BlackRock, Inc. – Founded in 1988, the global investment firm delivers services such as risk and fixed income institutional asset management. Laurence D. Fink is the CEO of BlackRock. It has a projected revenue of $11.4 billion.
Analysts forecasted that Innovation Lab must succeed, or the company will continue its decline. Executives are still positive that their brain trust idea is a bold action, that has potential for growth and impact.