• This new arrangement will see the two organisations increase the international money transfer offer to those firms on the SAP Ariba network
• Benefits for clients look set to include better transparency around forex rates as well as artificial intelligence options
• “We put clients at the center of this product to create a frictionless payment experience and provide competitive and transparent pricing”, said a Goldman Sachs spokesperson
One of the world’s leading financial services institutions has confirmed that it will work with a partner on a new service designed to help firms with their supplier relationships.
Goldman Sachs said that it would work with SAP, which is a global software company, to deliver the new service.
It will mean that firms can more easily work with suppliers on the SAP Ariba network, which is a subsidiary owned by SAP and on which over $3.2tn is spent in commercial transactions every single year.
It is believed that a wide range of advantages will be conferred on those who participate in the new scheme.
One such benefit will be a better process for settling financial obligations to international suppliers through cross border payments with attractive forex rates.
There will also be an increased level of transparency around the fees levied by the financial institutions in the equation.
There will be an artificial intelligence dimension to the service too.
Goldman Sachs offers a sophisticated set of machine learning techniques, which will be able to be harnessed by those using the new scheme for optimised payment routing purposes.
According to Sean Thompson, who serves as the executive vice president (EVP) for Network and Ecosystem at SAP Procurement Solutions, the new service will help “add more value” for clients.
“We continue to expand our portfolio of ecosystem partners to add more value for customers”, he said.
“Partnering with Goldman Sachs Transaction Banking allows us to deliver more innovative financial solutions, starting with these cross-border payment capabilities, which is critically important for so many of our customers on Ariba Network doing business in the global economy today”, he added.
For Goldman Sachs, Hari Moorthy – who serves as the firm’s global head of Transaction Banking – the development was “innovative yet simplified”.
“We put clients at the center of this product to create a frictionless payment experience and provide competitive and transparent pricing”, he said.
“We are proud to partner with SAP to introduce this innovative yet simplified approach to making payments across the globe on Ariba Network”, he added.
A press release also went into more detail about the risk management aspect of the new partnership.
It will offer “reduced risk as a result of improved visibility and control over foreign exchange payments and currency exposures for stakeholders in procurement and treasury”, the release said.
It’s important to stay ahead of the curve if you’re involved in the international money transfer sector.
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