They aim to create one of the world’s leading fund and wealthtech platforms
French international banking group BNP Paribas has announced a new strategic partnership with wealthtech firm Allfunds.
The firms aim to create one of the world’s leading fund and wealth technology platforms, leveraging each other’s strong international reach to develop next-generation fund distribution services.
“The demand for fund distribution platforms is growing and we want our clients to be able to take advantage of the opportunities they present,” explained Patrick Colle, CEO at BNP Paribas Securities Services. “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.”
BNP Paribas Securities Services intends to use Allfunds as its preferred access to the fund market and the firms will explore ways to enhance services to financial institutions and fund providers.
Allfunds will also be entrusted with the management of distribution contracts of third-party investment funds for several BNP Paribas Group entities in its retail, wealth management, insurance and asset management businesses.
Global reach
BNP Paribas Securities Services provides multi-asset post-trade and asset servicing solutions for buy and sell-side market participants, corporates and issuers with a global reach covering 90+ markets.
Allfunds is one of the world’s leading wealthtech and fund distribution companies with a service offering which includes data & analytics, portfolio & reporting tools, research, and regulatory services. It offers more than 84,860 funds from over 1,550 fund houses.
“This deal represents a major step in our ambition to be at the forefront of wealthtech,” said Juan Alcaraz, CEO of Allfunds. “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.”
The transaction, which will see BNP Paribas Securities Services and BNP Paribas Asset Management receive together a strategic stake of 22.5% in Allfunds, is subject to regulatory approvals and required consultations. It is expected to close before the end of 2020.
