It is not clear what will ultimately emerge from Goldman’s 1.5bn lines of code in production, or the 90 market infrastructure patents — more than double the next bank (Morgan Stanley), but Mosaic (the online lending clone) is definitely one to watch.
But the difference between Goldman and its peers is scale. According to estimates by Credit Suisse analyst Susan Roth Katzke, Goldman will spend between $2.5bn and $3.2bn on tech this year, or 7 to 9 per cent of its revenues. That compares to public disclosures from JPMorgan Chase and Bank of America of 3 per cent and 4 per cent of revenues, respectively. “[Goldman] has a very good track record of staying in front of technological change in their industry and harnessing it to help them build market share and manage expenses and risks,” says Guy Moszkowski, an analyst at Autonomous Research in New York.