In November 2021, during AWS re:Invent, a key announcement went relatively unnoticed.
Financial giant Goldman Sachs announced the launch of Goldman Sachs Financial Cloud for Data with Amazon Web Services, Inc. (AWS), a new suite of cloud-based data and analytics solutions for financial institutions. This collaboration redefines how clients can discover, organise, and analyse data in the cloud, thereby gaining rapid insights and driving informed investment decisions. Institutional clients will benefit from decades of Goldman Sachs experience to address data management and analytics challenges.
Now, step back and think for a minute. Goldman Sachs does billions of dollars in trade and this happens in a fraction of a second. Even as advances in data and technology are rapidly transforming the financial services industry, software developers in investment firms continue to spend significant time and energy customising various tools to manage, interpret, and analyse financial data at scale.
Many of the existing solutions for financial data management and analytics are based on a patchwork of legacy technologies that struggle to meet the latency and scale requirements of modern investment practices. As a result, investment firms may spend their engineering expertise managing undifferentiated infrastructure and wrangling data, rather than innovating at the speed they would like for their customers.
Advanced quantitative analytics
The collaboration between Goldman Sachs and AWS will vastly reduce the need for investment firms to develop and maintain foundational data-integration technology, and lower the barriers to entry for accessing advanced quantitative analytics across global markets. Goldman Sachs institutional clients will be able to accelerate time to market for financial applications, optimize their resources to focus on portfolio returns, and innovate faster. Users of the Goldman Sachs Financial Cloud for Data will also benefit from more streamlined and secure access to best-in-class financial data from Goldman Sachs.
“Today, we are redefining the future of cloud for financial services as we enable developers to focus on building financial solutions for their customers. We are excited to bring together the two leading firms in financial services and cloud computing to deliver an unparalleled solution for financial data management and analytics on the cloud, revolutionising how our clients extract value from the increasing wealth of information in our industry.” David Solomon, Chairman and Chief Executive Officer of Goldman Sachs.
Goldman Sachs Financial Cloud for Data is a cloud-native financial data management and analytics solution for hedge funds, asset managers and other institutional clients. It significantly increases the power of Goldman Sachs front-office analytics tools, such as PlotTool Pro, a leading time series analytics tool from Goldman Sachs, and GS Quant, the firm’s Python toolkit.
Clients can seamlessly and securely integrate their proprietary data alongside Goldman Sachs curated financial markets data, including select third-party data products through Goldman Sachs Financial Cloud for Data’s integration with AWS Data Exchange, a service that makes it easy to find, subscribe to, and use third-party data in the cloud, officials said. The data is then available in Goldman Sachs’ securely managed time-series database and analytics engine, which is capable of storing and integrating tick-level financial data across hundreds of different assets in real-time.
As a result, it is now easier for developers to analyse a diverse range of financial datasets consistently and at scale using the latest quantitative techniques, accelerating the time to get value to market. Components of Goldman Sachs Financial Cloud for Data are also compatible with Amazon FinSpace, an AWS service that makes it easy to combine and analyse data from multiple sources, such as position data from data warehouses or lakes, opine industry watchers.
“With Goldman Sachs Financial Cloud for Data, we are lowering the barrier to entry so more financial services institutions can leverage advanced, near-real time analytics in the cloud,” said Adam Selipsky, CEO of Amazon Web Services, Inc. “Combining Goldman Sachs’ data and over a century of financial services knowledge with the reliability, security, and industry expertise of AWS will reimagine financial services technology and put developer-focused, cost-efficient technologies in the hands of all organisations.”
“Access to high quality data at scale is essential to providing differentiated returns to our clients,” said Justin Stephan, Head of Investment Services and Technology at Wellington Management. “We work with a variety of industry leaders to deliver those capabilities and AWS and Goldman Sachs have been among our key partners for many years. We believe that a product combining Goldman’s market coverage and expertise with the innovation and velocity of AWS can improve investment outcomes by further enhancing the ability to source, manage, and analyse data.”
“We’ve been partnering closely with Goldman Sachs to develop advanced data and analytics solutions for our investment professionals to accelerate time-to-market for new strategies,” said Vlad Torgovnik, Chief Information Officer at Millennium. “This new collaboration between Goldman Sachs and AWS will enable us to derive unique insights from our proprietary data in a private and secure environment, while leveraging the scale and innovation speed of the cloud.”
“MSCI provides institutional investors with unique insights and solutions to help them manage portfolios more effectively. Through MSCI’s collaboration with Goldman Sachs, our shared clients benefit from MSCI’s robust data and content and Goldman Sachs’ analytics and trading workflows,” said Jorge Mina, Head of Analytics at MSCI. “We always strive to meet our clients where they are, and with the Goldman Sachs and AWS collaboration, our clients will have access to more options that can unlock a whole new range of possibilities in advanced portfolio analytics on the cloud.”
Options is the key word and Goldman Sachs would know better!