Goldman Set Out to Automate IPOs and It Has Come Far, Really Fast
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A few years ago, Goldman Sachs Group Inc.’s leaders took a hard look at how the bank carries out initial public offerings. They mapped 127 steps in every deal, then set out to see how many could be done by computers instead of people.
The answer so far: about half.
Just 21 months after the firm disclosed its plan to re-engineer one of Wall Street’s most lucrative businesses, the project has found ways to eliminate thousands of hours of work long performed by humans. A computer-based interface called Deal Link has replaced informal checklists that were once tended and passed down between generations of rainmakers. It now arranges and tracks legal and compliance reviews, fills in forms and generates reports.
The initiative’s progress — described by senior Goldman Sachs executives in recent interviews — shows how quickly big investment banks may be able to automate tasks once beyond the reach of computers. The industry is under intense pressure to improve profitability, while contending with young workers less willing to put in 18-hour days. At Goldman Sachs, managers say they’re looking to new technology to free up junior bankers in particular, letting them focus on more satisfying work. That could help slow an exodus of talent to private equity firms, tech titans like Google and hot startups.
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