In March, 500 teams of employees had the opportunity to pitch the bank startup ideas, CNBC’s Hugh Son reported, citing Tanya Baker, the head of GS Accelerate, an internal program started in 2017.
Of those submissions, five were selected in early October for the ultimate prize — to receive funding from Goldman Sachs. The winning teams are located in New York, London, Hong Kong, Salt Lake City, and Bengaluru, according to CNBC. They have two years to succeed at one of the following mandates: generate new revenue, create efficiencies, or improve client experiences.
The program highlights how Goldman has decided to tackle two issues in banking. The first is that Wall Street is increasingly buying stake in fintechs to stay on the cutting edge. The second is that some Goldman employees with good ideas have left the firm in the past to start their own businesses.
With this program, Goldman is keeping their current talent close.
“Some people leave the firm and go build their ideas,” Baker told CNBC. “You can do it outside but most businesses fail. There will be some ideas that will uniquely be successful here.”