BNP Paribas and Allfunds today announced that they have entered into an agreement to create one of the world’s leading fund and wealthtech platforms.
This agreement will enable BNP Paribas, one of the world's largest financial institutions, and Allfunds, a global independent leader in wealth technology, to build on each other’s expertise to develop next-generation fund distribution services.
BNP Paribas Securities Services, a leading global custodian and fund services provider, intends to use Allfunds as preferred access to the fund market, exploring together opportunities to enhance services to fund providers and financial institutions. BNP Paribas Securities Services will also transfer its Banca Corrispondente local paying agency activities in Italy, as well as some Italian transfer agency services, to Allfunds, where they will complement its existing range of local fund distribution services.
In addition, BNP Paribas will entrust Allfunds 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.
The aim of this partnership is that BNP Paribas and its clients will benefit from one of the leading wealthtech platforms in Europe, whilst Allfunds’ partners expand their business reach and benefit from BNP Paribas’ experience in asset servicing and asset management.
Patrick Colle, CEO at BNP Paribas Securities Services, commented: “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”.
Juan Alcaraz, CEO of Allfunds, added: “We are proud to enter into an agreement with BNP Paribas, a leading bank in the Eurozone and a prominent international player. 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”.
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.