Goldman Sachs banks on city
Massive boost for Birmingham as investment bank reveals huge new base
GLOBAL investment bank Goldman Sachs is to open a major base in Birmingham in a huge vote of confidence in the Second City.
Following a year of speculation, Goldman Sachs confirmed a landmark investment in Birmingham, where it will create its largest presence outside London.
The move signals a shift away from the banking sector’s historical focus on London and follows similar announcements by the Ministry of Housing, Communities and Local Government and Department for Transport which are opening bases in the West Midlands.
The banking giant’s new outpost will initially be a technology hub but it expects other divisions to expand to Birmingham later.
The bank confirmed the office will employ several hundred people over the next few years, the majority hired locally.
It will initially open a prime shared office space in the city centre by autumn this year ahead of moving to a more permanent location.
Richard Gnodde, chief executive officer for Goldman Sachs International, said: “Establishing a new office in Birmingham will diversify our UK footprint and give us access to a broad and deep talent pool in the local area. We see tremendous opportunity to enhance our UK presence and continue delivering for our global clients.”
A company spokesman added: “An office in Birmingham offers access to a strong and deep new talent pool, excellent academic institutions, a growing technology sector and longstanding leadership in STEM industries.
“We believe Birmingham offers a number of unique advantages and the city’s proximity to our London office will allow for easy travel between UK offices for our people to stay closely connected with other divisions and clients.
“Engineering will be the first division to build out in Birmingham with a mix of hiring and employee transfers.
“The Birmingham office is an exciting opportunity to build on the successful expansion of other strategic locations and technology hubs in
Europe in recent years, including Warsaw and Stockholm.”
The move was welcomed by business leaders and politicians.
Neil Rami, chief executive of the West Midlands Growth Company, the region’s official investment promotion agency, said: “Goldman Sachs is one of the world’s most prestigious investment banking institutions, renowned for its laserfocus on recruiting the best and brightest talent and the pre-eminence of its data-driven, customercentric technologies.
“We are delighted that it has chosen Birmingham as the home of its major new presence, where it will harness the region’s entrepreneurial talent to develop its mission-critical digital expertise, creating hundreds of jobs.
“As the investment banking landscape continues to innovate in the face of rapid financial technology transformation, the West Midlands Growth Company put forward a compelling appraisal of the region’s digital engineering workforce, academic facilities and long-standing influence in the field of banking and finance. “The region boasts the largest and most high value financial and professional services sector outside the capital and is super-charging the UK’s innovative potential through SuperTech; the UK’s first and only dedicated professional services-tech accelerator.
“Already the thriving home of client-facing operations for investors such as Deutsche Bank and HSBC UK’s headquarters, the West Midlands is successfully recasting typically London-centric banking structures, offering a premium but far more costeffective base for innovative businesses with a growth-mindset.”
He added: “This is just the beginning of a surge in momentum in foreign investment here, with the 2022 Commonwealth Games and Coventry’s City of Culture status opening up new international avenues to strengthen trade and investment flows into the region.
“Goldman Sachs’ investment undoubtedly cements the West Midlands’ prominence on a global scale; it is powerful affirmation of our region’s appeal to the aspirations of the world’s most iconic, multinational financial services brands and the talent they seek to attract.
“As the outcome of a meticulous review of the UK’s digital employment base, it is another resounding endorsement of our best-in-class talent from the technology and finance sectors. We look forward to supporting Goldman Sachs’ long and prosperous journey here in the West Midlands.”
Andy Street, mayor of the West Midlands, said the announcement was “brilliant” news for the West Midlands.
He said: “Not only will it help create hundreds of jobs here locally, but it also shows real confidence in our region and our ability to bounce-back quickly and strongly from the pandemic.
“Throughout the past year we have had two major Government departments announce relocations to the region, and seen firms such as BT pressing ahead with their plans for major office space.
“Combined with the news this week there is a clear sign that employers still want significant town and city centre office space, which can only be great news for West Midlands businesses that thrive off office worker trade.
“Of course, Goldman Sachs were looking at other locations across the country, but the team at the West Midlands Growth Company worked ferociously hard behind the scenes and I am delighted we’ve convinced the firm to move here.”
Establishing a new office in Birmingham will give us access to a broad and deep talent pool in the local area Chief executive Richard Gnodde, right