Goldman Sachs announced its new Amazon Web Services (AWS)-backed cloud platform yesterday, opening up its large network of market data and software tools to third party institutions, according to CNBC.
The product is called GS Financial Cloud for Data with Amazon Web Services, and was unveiled at the AWS re:Invent conference in Las Vegas. The launch shows growing ties between Goldman Sachs and Amazon, and follows a quickly growing trend of financial service providers moving their services to the cloud.
Goldman Sachs has been working on the product for two years, according to the report, and is part of the firm’s ongoing push to use technology to better service markets division clients.
“Clients of the firm will get access to our decades of experience and data aggregation that should enable them to enhance their business decisions, both from a speed and efficiency perspective. We think that adds to our position as a leader in the marketplace,” Goldman Sachs CEO David Solomon told CNBC.
AWS also earned another valuable capital markets client yesterday, with NASDAQ announcing plans to migrate its North American markets to the Amazon Cloud, beginning next year with options mart MRX. That move will be directly linked to AWS’ Outposts product, which extends the AWS infrastructure, services and APIs to any datacenter, co-location space or on-premise facility.
NASDAQ plans to incorporate that product directly into its core network to deliver “ultra-low-latency edge compute capabilities” for its primary data center, and says it will partner with AWS to develop cloud services for the 130 market infrastructure clients that currently rely on its tech platform.
“This landmark partnership with AWS seeks to power a truly cloud-based market infrastructure that is more resilient, scalable, and accessible for all market participants,” NASDAQ President and CEO Adena Friedman stated in the release.
The stock market provider says it also plans to move additional North American markets to the AWS cloud over time. It says the hybrid infrastructure will also enable virtual connectivity services, market analytics and machine learning at a lower cost.
Both moves show Amazon is gearing up its movement in capital markets, and could be winning the cloud service battles. In the quarter ending in September, AWS has seen sales jump 38.9% year-over-year to $16.11 billion, with operating income up 38.1%.
While Amazon was hit by COVID-related costs, AWS and other cloud service providers saw business accelerate due to the rise in remote work.
In other recent fintech news, the UK’s Financial Conduct Authority (FCA) released adjustments to open banking standards, no longer requiring fintechs to re-authenticate customers every 90 days. Temenos also launched its open marketplace for connecting banks and fintech solutions, and introduced a new developer accelerator to accelerate innovation in the market.