Founded in 1869, Goldman Sachs is headquartered in New York with regional headquarters in London, Warsaw, Bangalore, Hong Kong, Tokyo and Salt Lake City, and additional offices in other international financial centres.
The company’s Transaction Banking system (TxB) was launched in the US in 2020 and expanded to the UK in 2021. This new expansion into the European Union is part of a larger effort by the company to serve clients in more than 160 countries. According to financialit.net, the service has attracted more than 400 clients with USD 65 billion in deposits since its original 2020 launch.
The transaction banking platform provides services such as cash management and treasury to businesses. Clients gain access to payment data and liquidity positions across currencies and countries in order to optimise their working capital. The platform also enables customers to make domestic and global payments in more than 120 currencies with real-time payment tracking.
For now, Goldman Sachs is opening a new location in Frankfurt, but it has plans to expand to Amsterdam as well.
In 2022, Goldman Sachs has extended several credit lines to startups and well-established platforms across Latin America. For instance, in July 2022, Goldman Sachs has agreed to loan LATAM’s major ecommerce platform, MercadoLibre, USD 233 million in order to support the latter’s expansion in Mexico and Brazil.
MercadoLibre plans to expand its credit offering in the two countries, with Mercado Pago to use USD 106 million to boost its credit portfolio aimed at individuals and small businesses in Brazil.
In August 2022, Goldman Sachs has extended a USD 150 million credit line to Mexican startup Clara, which lends to corporations and helps manage their spending. The financing starts at USD 50 million but can be extended to USD 150 million, and Clara plans to use the funds to expand in Latin America and improve its technology.
The new credit line should help the company more than double their coverage in Mexico, while also focusing the remaining resources on product development and geographic expansion.
In September 2022, Goldman Sachs has decided to lend USD 140 million to Chile-based fintech Xepelin to support its expansion into Mexico. Xepelin plans to expand to other nations and increase its current portfolio of 15,000 clients to 1 million clients by 2025. According to the company’s own estimates, the market for payment services between companies in Latin America is as large as $8 trillion.
The asset-backed loan from Goldman Sachs has a maturity of about three years and will be released in two tranches, one for USD 40 million and the second one for USD 100 million.
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