A division of Goldman Sachs’ transaction banking business has reportedly stopped signing riskier fintech clients following a warning from the U.S. Federal Reserve earlier this year. The Fed raised concerns about insufficient due diligence and monitoring processes by Goldman Sachs when accepting high-risk non-bank clients. This division of Goldman Sachs provides banking infrastructure to fintech clients, including payment start-ups Stripe and Wise. The transaction banking business is part of the company’s Platform Solutions unit, which also includes credit cards and the fintech unit GreenSky, acquired for $2.2 billion in 2021.
By FCCT Editorial Team