YouSaid · the spoken record

Ed Goldman

lines on the record: 29
first: 2016-01-20
most recent: 2016-01-20
sittings or episodes: 1
sources: podcast

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“Ways to help change the way that Goldman Sachs interfaces with our clients through very applied technological solutions. We think that there's a great set of opportunities that we find is really helping drive. I think part of what we also see is that the ability for us to be in a position of leadership is very important, very compelling as we work to bring people to our firm. And so being able to take our products and services and not just have them improve Goldman Sachs, but improving the entire financial community is both inspiring. It's also very exciting. And so as we create more and more of these opportunities, as we move into this digital world, we see that being in a great attractor for talent.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“It's a core company. It's at the core of the firm. At the core of the firm, it's a core competency across all parts of the organization, not just the technology division. And it's a meaningful opportunity we see and where we find that we are able to acquire great individuals, entrepreneurial individuals, technologists to really come and help us is because we have great opportunity. The challenges in front of us are non-trivial. The complexity of our products and our solutions and the markets we operate within are enormously challenging. As we mentioned before, we've been investing in technology for over two decades. And it creates a great opportunity, therefore, for great technologists to come and join us and actually work on both very hard and technically complex challenges, but work on that in the context of a changing business, which is really kind of unique and it's kind of fun and the ability to be an entrepreneur who can really help us find opportunities to disrupt and change our structure, help find”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“So, a couple things we are deeply investing in data. We see that the ability to take data and help turn it into information as an asset is a core part of our strategy. It's very important both technological strategy for the firm as well as business strategy and helping us move to a better degree of data-driven businesses as well as really deriving expertise, content, and knowledge of information. So that's an area we've been investing quite a bit in.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Can see who had it, who owned it, the fact that they actually committed to each other electronically and signed it with cryptology to ensure that it was authorized. You could see all those things. And importantly, again, by having that all being done in a set of digital transactions, it enables it to happen in a much shorter timeframe. So it also reduces a lot of what today are the delays which create other types of risk in the settlement cycles, which need to be compensated for in other form. So it's exciting. It's interesting. I think that you could ask the question of, well, why couldn't this have been designed before? And I think that that's a very valid question. I think part of what we find, or I certainly find personally very exciting about this, is just the awareness. That's happened within the financial community that there is a technological answer that can help drive change and improve our system is just very encouraging.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Not immediately visible to all. There's the need to transfer the awareness and knowledge, which is quite federated. And that introduces just essentially delay. And so there's lots of opportunity for tracking error where maybe someone missed a change or didn't update it correctly. And so you introduce a lot of inefficiencies to some degree in the process, again, relative to what we see today with solutions like blockchain, which for the audience who may not have heard about blockchain before is the core technology that underpins much of Bitcoin. And so the ability to have a technological solution that enables multiple counterparts to see and enact upon the same understanding of truth on an asset transfer in a way, again, that's immutable, that's protected, that uses cryptology to make sure that you can't go back and change something inappropriately, creates a new way to envision the way that we do many parts of the financial industry, particularly, and again, in”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Designed and created over the last several decades that you have this situation where you have multiple versions of the truth, which means that everyone needs to reconcile with each other to ensure that they all have the right set of information of who actually owns that asset, when did it get transferred, and it also creates a certain degree of just temporal delay. It's not possible to be done right away.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“If you think about much of the industry that we operate in, as we mentioned earlier, there's many different parts and many different counterparts in any type of transaction. It's at the center of much of the financial services world are effectively many sources of record where asset transfers of different types of assets need to be recorded and understood. And those are very distributed because there are, again, many different players, many different people involved or counterparts. In order to facilitate the growth of our industry, much of that has been formed around concepts of having multiple sources or multiple parties owning a definition of truth. So the Bank of New York will own a big part of the reconciling of the ledger of who owns what stocks in the US. And so would other institutions around the world. But you end up where, because of the structure of the environment, in large part, given the technological capabilities as it was being”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Blockchain is a cryptographically secure ledger, so it's an ability to provide a decentralized way of different institutions looking at the same information in a way that doesn't require to be at a single place. And so it enables us to really look at solutions where we have a common sense of truth and be able to bring that into a digital form that's both secure as well as it's comprehensive and it's a consensus-based.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“People with good, and it's a continuous struggle to ensure that we're designing in both the technology solutions, but also in how we develop awareness and how our people access information to ensure that we're controlling and we're supporting information from a security perspective. That's a continuous challenge. We also need to be aware that as we digitize more of our industry, that more and more of the operational risks that we would historically have thought of as perhaps being in a human form are now more and more into data and software and computing. And so we focus a lot on how do we control the way we build software, deliver software, control data, support it, protect it, think about planning for contingencies, et cetera, et cetera, because again, the principle of vector now for failure is becoming more and more technology than it was. The implications are much broader too. Much broader.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Key awareness point, I think, for all of us in the community is that you need to co-invest, you need to develop partnerships, you need to be able to help influence and create awareness of why security really does matter to parts of the industries that may not necessarily see that as clearly as we do coming at things from a financial services perspective. And so a lot of our agenda in technology over the last several years has really been aligned to that of how do we move our own firm forward in terms of embracing and adopting more parts of the public infrastructure spectrum, be more engaged in open standards and solutions across the broader technological community to help influence change and awareness of solutions and services that will enable our business that perform better in a digital world. But those risks continue to grow. All the great innovation that we talked about earlier that helps reduce the cost of solutions and services is available to people with bad intent as well as it's...”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Well, as you say, I mean, the risks obviously continue to grow in many different dimensions. I mean, they're certainly the pure risk around cyber security, the advanced persistent threats. How are you able to protect your digital assets and the data? Importantly, that really rides on those. And as we continue to see the industry move forward in a digital form, that means that more and more of our information services content is going to be in places that we don't physically.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“I think it's hard. I mean, I think there's no question that transforming an existing business is a much harder challenge in some ways than building a new business startup and a new app, exactly. And I think that what we try to do, and I think where we see and learn from people who seem to be best at this, is just to really both think about technology as fundamentally a business competency for the organization and then think about change as a continuum that we are constantly looking at ways to reinvest in improving customer experiences. We're constantly looking at new ways to think about how to facilitate for the types of data and computing and processing that we have to make it more efficient by working with large web firms and understanding how they do things. And so I think you need to create a culture that is continuously innovating in order to facilitate for that. But I don't pretend that it's easy to do. And as you mentioned, when you get into a system that's well-defined,”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“And then secondly, how do we embrace the new economy that's forming around us? And so what types of opportunities are there to take the solutions and services that we believe we have very good solutions around and begin to not just look at our classical customer base, but also look at new ways to extend those product and services as we see this new digital economy start to come together?”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“And so we see that really as being the interesting secular change. And we see a lot of the fintech companies therefore are really focused on that side of the equation, how to really disrupt the sales and origination cycles, since A, that's where most of the profitability tends to be versus the credit intermediation. And they're just easier in some ways and they're simpler and have less of those challenges, those moats as we described earlier. So a lot of opportunities, a lot of interesting things. I think from our perspective at Goldman, our focus is twofold. One, how do we continuously invade ourselves both in the markets that we're in as well as we think about the opportunities that could be there to extend our existing franchises, businesses?”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“I think what we tend to see is that the most interesting opportunity tends to be that, again, through these technological secular changes, that we're seeing the historical model of banking being a relatively closed loop model which was driven around things like your physical branch networks becoming very disaggregated. So the opportunity to go in and imagine having a relationship with a new entity that may not be your historical bank for things like a loan or something like a mortgage now becomes much more reasonable given that you're executing this online. You're not executing it by walking down the street or driving to your bank. So this disaggregation opportunity creates very interesting spectrum for new entrants to come in and say, can I pick the particular market segment and the particular customer segment and find ways to create great innovations that make it simpler, perhaps, and more efficient for customers?”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“And there's a lot of expertise. I mean, a lot of our businesses are very complex, and you could argue whether that's good or bad, healthy or unhealthy, but the expertise that's necessary to participate in many of our markets can be quite high, particularly in things like derivatives and risk management. So I think that's kind of the bear side of the debate. On the bull side, for fintech, I think you talk about and you see both first and foremost an enormous amount of investment dollars going into these companies. I think over the last five years, over $23 billion was put into in terms of venture and equity capital.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“It's a very interesting, very complex debate, and on one hand, banks have been investing for a very long time in technology. And so much of our core franchise businesses of the banks are already very technologically driven. So the more classical story of someone coming in as a digital player and disrupting a highly analog business like we've seen in commerce and other parts of the retail market spectrum is much less likely in the financial sector given that there is already so much of a deep investment in technology and it becomes a very core competency and really everyone who participates. And banks have also relatively deep moats if you want to use that term in terms of both the regulatory requirements that are necessary to operate in our businesses, the focus on compliance, and the underlying sets of controls that are needed in order to expensive modes.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“To the open source, which gives us the ability to help everyone in the environment and the community improve, which fundamentally does help our business at the end of the day. Our ability to conduct business on behalf of our customers in as effective and efficient a manner as possible becomes more and more constrained in a globally connected world by everyone's ability to have the capabilities to deliver technology services. And so we find that it creates outsized impact for us to have that position.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“I think that we really take a view today that we've, first and foremost, have benefited enormously ourselves from open source, that when you look into our environment, when you see how much of our internal software is what is running on, that open source, whether it be starting with the open source of operating systems through Linux, through to open source hardware, with the open compute project that was begun with Facebook, but we've been a core member of, through to many different components of our stack that are now principally open source, that we continue to find that creates great benefit. For us, the challenge with being a contributor beyond an intellectual contributor has been what types of assets would be useful to everyone as many parts of our businesses are very specialized in nature and may not really have all that much broad value, but things like we described like symphony, parts of our trading infrastructure, create opportunities for us to contribute.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“You claim to be because we could have a much more technological model for authorization and entitlement to be able to move to where you can imagine building applications that really provide for much more of a workflow like an app store you'd find today in your smartphone environment. So really creating the basis for the entire community to move to more of a enabled digital model that starts with having that base layer of infrastructure which is a core open and secure solution for messaging that starts at the center of that.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Lower cost, better experiences. So as an example, there's an initiative which Goldman Sachs was part of that's called Symphony, where we were able to take a set of services and software that we had developed internally for really enabling multi-party type chat solutions for our own business and for our own customers and really work to do two things. One, to open source the software and make it freely available for the world to use. And then secondly, to work with the financial community to develop a new entity that's going to provide effectively for the first time ever open and secure messaging fabric for certainly our industry, but for any industry that wants to use it. And why is that important? Well, it enables us then to begin to move to where we can imagine not just the basics of sending messages between institutions to becoming secure and open, but then to develop on top of that even more value-added solutions, things like the ability to know that this really is the person that”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Similar, at least in the basis of being able to move information in a digital form. And more and more we're finding that the ability to move that forward as a community creates the basis for material reduction and friction of our business and material gain and obviously.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“People think oftentimes of banks as being sort of a closed source model that banks have their own special sauce and their own special technology, but really for the marketplace to work, you're saying, it really needs to be one that everyone is using similar tools, similar solutions.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“It's just how community driven it actually is. So very few things actually occur in the world of finance or certainly in the institutional markets that we operate within, which is just Goldman Sachs to a single counterpart. There's many different players involved. There are many different processes in the cycle of doing both pre-trade all the way through post-trade execution. And so there's a natural supply chain and community that is there. Now, much of that over many years of investment has moved into what we would think of as a structured digital model. And so there's a lot of information that's tremendous investment in technology that's gone into the banking sector for decades. But the opportunity to really take that forward through things like open source or really embracing more community style technology architectures is something that really does both fit to the model of our business, but also enables us to not think about just institutional gain, but really kind of network gain and community scale gain.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“I think one of the other macro trends that we think is really driving this whole new digital agenda is just the impact that has been had of just the change in innovation and the cost of innovation, broadly speaking. And so open source is certainly one big component of that, the ability to gain access to very complex solutions, whether it be software or hardware solutions in the open community that in the past you'd have to purchase or pay for or the ability to get and tap into the internal expertise of the engineering groups at many of the big large web firms who are now providing open source solutions as a regular part of how they embrace change and drive their own business agenda. Open source has created a whole new basis for enabling the innovation to become simpler and cheaper and lower cost, which enables people to be able to get more solutions and more business innovation complete. But stepping us back for a moment, one thing that I think surprises people often about aren't.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“So, one big driver of change has been open source approach that's really transformed the way a lot of technology companies innovate. It seems almost counterintuitive that a collaborative approach like open source would have a big impact in the business world, particularly the financial world, but it is, including here at Goldman Sachs. Talk a little bit about our approach to open source and why we think it makes sense for enterprise solutions.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“We think it's certainly the tip of the spear for sure. Even at Goldman's, we think about as we bring in new, younger people into our environment, into the firm, they expect and demand everything to be available online and digital. And so we're certainly seeing that advent of this whole new generation that have born digital grew up in the age of internet. But I would say we're also seeing that it's just much, it's not that narrow. It's also broader. The growth in solutions like many of the large social networks that are happening at the baby booner generation and the Gen Z generation that we're seeing not just the born native community, but we're seeing that it's a broad-based acceptance and shift into technology that's happening again that's then spurring interesting changes and the dynamics of how we interact with our clients and their expectations of us and the way that we think about the solutions we provide here at the firm and to our own employees.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Acceptance, desire, empowerment, who wants to go back to ordering things and waiting days, months, weeks when you can get information, get devices, get solutions online right away. If you can manage your music yourself, just the empowerment of technology that's really kind of now made it into the mainstream is just hugely enabling change because the perceptions and the desires and how people want to work today are just increasingly different, but largely different because they're being fueled by people's capability through technological innovation that's been happening in everybody's world, but certainly in the consumer landscape in particular.”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT
“Been Ed Goldman Sachs for 27 years always in technology. And I have to say it's just phenomenal for me to have seen obviously how important technology has been to our industry and to our firm, but just really seeing the escalation that's been occurring in the last several years. And we think that there are a number of different themes behind that. What's driving that that are secular? One very important one is just the amount of literacy and comfort level there is in the world today around technology where it's such a core part of everyone's life where it's become just inevitable that you're picking up your phone the first thing you do in the morning that you're finding that much of what you do from an entertainment perspective a shopping perspective your social perspective is all evolving around technology and that's just changing the way people think and of course that bleeds over into the workplace as well because people are people and institutions are made up of individuals so we see that that's one of the biggest macro trends that's occurring in the world today that's just fueling more people”
2016-01-20 · Goldman Sachs Exchanges · The Digitization of Finance · IDENTIFIED FROM THE TRANSCRIPT