Goldman Sachs (NYSE:GS), one of the largest investment banks in the world, has reportedly renewed its contract with the cloud-based data-warehousing company Snowflake (NYSE:SNOW), Bloomberg reported today, citing anonymous sources.
The deal is apparently worth millions of dollars and was signed back in July, according to Bloomberg's sources. Snowflake went public in September and scored the largest initial public offering of 2020, and the largest software IPO ever.
Customers can use Snowflake to store all their data into a single and easy-to-access place where they can then leverage it for data engineering, a data lake, warehousing, data science, data applications, and sharing.
According to Bloomberg, Snowflake seeks to sign more banks in its push to add enterprise clients. The company also works with other financial companies including Bankrate, AXA, CapSpecialty, Chime, Experian, and Capital One.
Sources told Bloomberg that Goldman Sachs has used Snowflake's services for its digital bank Marcus, which has had a lot of success in recent quarters, and for its transaction-banking platform.
Snowflake wrote in a blog post earlier this year that it could greatly benefit financial services companies through better customer service, new sources of revenue, and by helping to mitigate risk and fraud .
Specifically, Snowflake said it could provide better insight on customers through all of the data it provides. It also said it could make data sharing simpler, which would allow companies to create new data products they can sell to business clients. The company also says it allows financial services companies to use historic data to better prepare for cybersecurity and fraud threats.