Goldman Sachs, perhaps the most lucrative investment bank on Wall Street, could possibly be changing the entire system of how they do investment banking. Marty Chavez, the soon to be appointed chief financial officer for Goldman, thinks there are a lot of similarities between Goldman Sachs and Google. When Chavez first started talking to Eric Schmidt, chairman of Google’s parent company Alphabet, Chavez said, “We’ve been talking ever since about the similarities in the businesses. Some of the similarities are inspirational, I have to emphasize that, and some are there right now.”
So what are these similarities between Google and Goldman Sachs? Chavez explains it as, “Goldman is for risk what Google is for search.” They are two different industries, but they can be combined. Currently, Goldman Sachs has a resource called Data Lake. A Data Lake pulls in information on transactions, markets, and investment research. In addition it compiles emails, voice calls, and instant messages. This resource essentially directs Goldman Sachs employees on who to call and when.
“What really makes us valuable is the immense amount of data that we have,” Chavez said. “In this job of inspiring our clients to call us because they have risks they don’t want or want risks they don’t have, there is incredible information content, and using that for the benefit of the clients to get a better result is what we’re up to.”
So essentially the first step is analyzing data, and then getting that data efficiently to clients. Goldman Sachs wants to move away from multiple data owners sending data to multiple clients and instead have one data services hub that can collect data from multiple owners into one location, which it would then disburse to clients. To do this, the new model would be based on APIs, which is standard computer communication among computer programs. Using your facebook account to log into Spotify is an example of an API. Spotify is talking to the facebook API whenever you log in.
“This model is based on taking in data, pushing it through analytics engines, then making it available to internal and external clients through the Goldman Sachs digital platform that Chavez has championed,” said Matt Turner, author of the article. Although Goldman Sachs certainly is not known for being an IT firm of any sort, it is clear that the need to process and deliver data efficiently to clients is at an all time high due to the vastness of data.