Early on in building its transaction banking platform, Goldman Sachs recognized an opportunity beyond the traditional transaction banking business model. It set out to extend its platform to provide banking-as-a-service (BaaS) to clients that have potential to excel at embedded finance. Today, BaaS is core to the bank’s go-to-market strategy, representing a powerful business model evolution.

In building Goldman Sachs TxB, Goldman Sachs has realized the best of both worlds: fintech startup and top-tier bank. As a result, it has been able to excel in the traditional transaction banking business model as well as the BaaS business model.

• Goldman Sachs TxB is set up like a startup within Goldman, an end-to-end business with its own dedicated resources.
  
  
• Thanks to its startup mentality, it has been able to innovate not only in terms of its tech stack but also in terms of client/partner engagement. It has enhanced its revenue model by seizing the BaaS opportunity, and it has built a strong cocreation culture with its partners.
  
  
• Thanks to its extensive infrastructure as a top-tier bank, it can deliver regulatory/legal and risk expertise, a balance sheet that scales, reliability, and security. In addition, its consistent global reach means that it can support partners with global ambitions.