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Modern Treasury and Goldman Sachs Partner to Provide Integrated Software and Payments to Corporate Customers
Partnership to Expand Access to Embedded Finance Solutions to Mid-Market Companies
San Francisco, September 15, 2022 – Modern Treasury, a software platform that helps companies modernize money movement, and Goldman Sachs Transaction Banking (TxB) today announced a partnership to accelerate the shift to embedded payments, helping joint customers seamlessly embed and scale domestic and international payments into their products to drive growth.
Modern Treasury’s Payment Operations software platform will provide mutual clients with an integrated money movement solution, with payments powered by TxB.
“Embedding payments into software products is increasingly the trajectory of commerce, and by partnering with Modern Treasury, we are creating new opportunities for clients to seamlessly leverage our payments capabilities within their own platforms,” said Eduardo Vergara, Global Head of Product and Sales at Goldman Sachs Transaction Banking.
Embedded payments is one of the fastest growing sectors across the payments industry as entire industries and workflows digitize. Global Payments notes that 60%-70% of new clients come from software channels [1]. However, existing banking infrastructure was not designed with them in mind, and companies often have to build in-house solutions, which takes considerable development and resources.
To embed payments, companies need expertise in both banking capabilities and software. However, navigating across them introduces complexities around client onboarding, compliance, counterparty management, programmatic payment initiation, product ledgering, third-party payment reconciliation, accounting integrations, and more, becoming a barrier to entry for many mid-market companies seeking to digitize payments.
“Modern money movement is software driven. Goldman Sachs understands software developers and has built award-winning APIs [2] for this audience,” said Dimitri Dadiomov, Modern Treasury co-founder and CEO. “Modern Treasury fills the payment operations gaps to provide our joint clients with a best-in-class software solution for money movement, so they don’t have to build it themselves. We look forward to helping more customers get products and services to market faster, driving growth.”
The companies have jointly served clients since late last year. Going forward, product teams from both companies have committed to a mutual product roadmap to address new client needs, tighten the integration, and offer mutual clients a unified product experience.
"We’re delighted to work with Goldman Sachs and Modern Treasury to better serve our investors and business partners,” says Nigel Glenday, Chief Financial Officer at Masterworks, the leading art investment platform. “With the help of both companies, our payment operations now support timely reconciliation of investor payments, irrespective of payment methods, and an integrated workflow to identify and resolve payment exceptions as they arise, all of which contributed to receiving our recognition as a recipient of this year’s noted Adam Smith Award.”
Modern Treasury and Goldman Sachs have collaborated on a solution to expedite clients' time to onboard [3]. In addition, clients can open virtual accounts, make domestic and cross-border payments, view real-time payment statuses, manage incoming payment receipts, and access many more services needed to support today’s high-growth companies.
About Modern Treasury
Modern Treasury provides payment operations software for companies, enabling teams to move and track money with confidence, and automate the complete cycle of money movement—from payment initiation, through approvals, to reconciliation. Using Modern Treasury products, innovators are reinventing the way businesses are built, run, and scaled. The company is a catalyst for growth in the economy's most important sectors, from real estate and healthcare to education and financial services. Founded in 2018, San Francisco-based Modern Treasury is backed by leading investors Altimeter Capital, Benchmark, and Y Combinator.
About Goldman Sachs Transaction Banking
Goldman Sachs Transaction Banking [4], through Goldman Sachs Bank USA, is building a modern, digital-first, and cloud-based business to help clients build the future of their Treasury. The business combines the strength, heritage, and expertise of a 150-year-old firm with the agility and entrepreneurial spirit of a tech start-up.
Global Payments, Investor Conference, (9/2021)
Global Finance Magazine’s 2022 North America Digital Bank Award for Best Open Banking APIs
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Transaction Banking services are offered by Goldman Sachs Bank USA (“GS Bank”) and its affiliates. GS Bank is a New York State chartered bank and a member of the Federal Reserve System and Member FDIC, as well as a swap dealer registered with the CFTC. It is a wholly-owned subsidiary of The Goldman Sachs Group, Inc. (together with its subsidiaries, “Goldman Sachs”) and leverages the resources of Goldman Sachs subject to legal, internal and regulatory restrictions. Information contained herein does not constitute an offer by GS Bank or any of its affiliates. The receipt of this document by any recipient is not to be taken as constituting the giving of financial, investment, tax, legal or any other advice by Goldman Sachs to that recipient, nor to constitute such person a client of Goldman Sachs. No person shall be treated as a client of Goldman Sachs, or be entitled to the protections afforded to clients of Goldman Sachs, solely by virtue of having received this document. No part of this material may, without Goldman Sachs’ prior written consent, be (i) copied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient. Subject to FDIC rules, regulations, and limitations. For more information on how FDIC insurance coverage works visit www.fdic.gov. © 2022 Goldman Sachs. All rights reserved. This document is confidential and may have been prepared by personnel in the Investment Banking Division or one or more affiliates of The Goldman Sachs Group, Inc. ("Goldman Sachs", “We” or “us”) and is not the product of the Global Investment Research Division. It is not a research report and is not intended as such.
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