BNP Paribas has snapped up a stake in a Spanish wealthtech firm allowing it to “significantly” beef up the reach of its wealth management platform.
The powerhouse French bank said it had agreed a deal to buy a 22.5 per cent stake in Allfunds for a undisclosed sum.
BNP said the agreement allowed the two firms “to build on each other’s expertise to develop next-generation fund distribution services”.
Madrid-based Allfunds was founded in 2000, and offers clients online access to big data, analytics, reporting tools, research and regulatory services. It also adds it has “the largest fund distribution network globally and access to the world’s largest universe of mutual fund and exchange-traded funds”.
Demand for platforms
The wealthtech firm has offices in Italy, the UK, Chile, Columbia, Singapore, the United Arab Emirates, Brazil, Switzerland and Luxembourg.
BNP said it will transfer its local paying agency activities in Italy currently handled by its Banca Corrispondente unit to Allfunds, as well as some other Italian transfer agency services.
The bank added that Allfunds will manage the distribution contacts of its of third-party investment funds for several of its retail, wealth management, insurance and asset management businesses.
Big banks in Europe and the US have responded to the growth more agile, consumer-friendly, fintech firms triggered by the 2008 financial crisis, by starting their own units, buying rivals, or both.
BNP Paribas Securities Services chief executive Patrick Colle said: “The demand for fund distribution platforms is growing and we want our clients to be able to take advantage of the opportunities they present. This partnership will enable us to significantly enhance our offering, giving our clients access to a successful and fast-growing fund distribution platform. It will also enable us to accelerate the development of next-generation fund distribution services and data analytics.”
Allfunds chief executive Juan Alcaraz added: “This deal represents a major step in our ambition to be at the forefront of wealthtech. By relying on our platform and BNP Paribas’ integrated business model, we will be able to empower clients with optimised fund distribution services and innovative digital solutions.”
BNP said the deal is expected to close “before the end of 2020”.