Goldman Sachs increased its technology and communication spend 16% year over year in the third quarter by investing in digital platforms.

The $1.6 trillion bank spent $459 million on technology and communication in Q3, up 3% sequentially and 8% from Q1.

Total operating expenses for the quarter dipped 6% YoY to $737 million as the bank accounted for higher expenses related to growth initiatives, regulatory proceedings and business activity, according to the earnings presentation.

“We’re making investments across the platform — particularly in certain technology infrastructure — and that’s having an impact that will be more medium-term … we think those are important investments that we need to make,” Chief Executive David Solomon said today during the bank’s Q3 earnings call.

Goldman’s enhancements are led by its team of 11,000 engineers, who “are doing some very interesting things as the world is evolving with technology,” Solomon noted.

Delivering on digital

For example, the New York City-based bank has built and launched a transaction banking platform and a digital consumer banking platform since its Q1 acquisition of fintech lender GreenSky.

More recently, the bank launched a new segment, Platform Solution, which consolidates fintech platforms, including GreenSky, across the firm, Solomon said.

“This segment will enhance our focus on building platforms that deliver digital financial services capabilities to corporate and institutions clients,” he added.

Meanwhile, the bank also extended its partnership with Apple in Q3 to offer a new savings account that allows users to grow their rewards and link bank accounts, Solomon said. “This embeds a high-yield savings account from Goldman Sachs directly into the Apple Card experience in Apple Wallet.”

Looking to Q4, the bank is focused on strengthening its core business and accelerating its ability to scale platforms and improve efficiencies, Solomon said. “Because of this, we are making a series of organizational changes in the fourth quarter to take the next step in the evolution of our strategy.”

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