BNP Paribas Asset Management (BNPP AM) has acquired a majority stake in Belgian Fintech Gambit Financial Solutions (Gambit), in a move to increase its digital-advisory services to support and enhance the digitalisation of its distributors.
Gambit will maintain its independence and extend its client footprint by becoming the preferred partner for robo-advisory solutions for BNP Paribas Group's retail and wealth management networks.
Gambit's solutions will be leveraged within BNP Paribas' retail and wealth management networks as the bank responds to clients' expectations with regard to discussing their financial savings and investment plans with their investment advisors by optimising the 'client experience using reliable, user-friendly and adaptable digital interfaces'.
These solutions combine Gambit's advisory-guided (Squiree) or fully autonomous/self-guided interfaces (Birdee - a proprietary B2C robo-advisor) with a scalable and modular framework that optimises the power of algorithms and the expertise of investment specialists.
The tools themselves are not aimed at increasing awareness and education around investment products but the content provided by the tool and the use of the tool to interact with clients will help to achieve that, according to Geoffroy de Schrevel (pictured), chief executive officer of Gambit Financial Solutions. "When we built Birdee, the performance of the portfolio was just one element of the offering and not the main focus," said De Schrevel. "The focus is on providing an experience with a focus on education and intuitiveness so that investors can make informed decisions with their savings and investments."
According to De Schrevel, this kind of advisory tool is product agnostic and can be applied for recommendations and advice across products including structured products.
"We took the view that more than 90% of people don't care about finance but 100% of the population cares about money," said De Schrevel. "The question is how we can use these tools to help people trying to make a decision about where to invest/save their money, and the only way we can achieve that is by engagement and dialogue. These tools have been designed to get investors engaged in learning about the different options they have and get the recommendations that fit their risk profiles. They are not aimed at recommending particular products but can be used to identify any product offered by BNP Paribas that suits a particular risk profile."
Frédéric Janbon, chief executive officer of BNP Paribas Asset Management said the partnership is a 'key milestone' in the bank's digital transformation and 'marks our commitment to delivering quality investment solutions to our clients'.
'We bring our asset management expertise and client knowledge to Gambit and this powerful combination will lead us to quickly move along the digital experience curve in this field,' said Janbon. 'This will significantly accelerate the pace of development and enrichment of our customer journey in the area of financial savings.'
Earlier this year, the asset management business of the French bank launched MyAdvisory, a personalised financial advice tool based on investment guidelines, as well as direct trading and chat capability with in-house investment specialists, as part of a global strategy launched by BNP Paribas in 2016 to establish a new kind of client experience around the bank's wealth management offering.
BNP Paribas said there is no particular focus on structured products but they will be recommended 'if they are fit for purpose' and that the digitalisation of a number of banking functions are aimed at providing a complementary service for its clients to respond 'faster and with better recommendations' across products and markets including structured products and ETFs but also mutual funds, fixed income products, direct investments on equities, Forex, etc.
Launched in 2007 as a spin-off from HEC - University of Liege by renowned academics, Gambit has developed investment advisory solutions and promoted the digitalisation of customers' engagement with financial institutions.
According to De Schrevel, these solutions, which have regulatory approval, are being rolled-out by a growing number of private and retail banks, asset managers and insurance companies in Belgium, Luxembourg, France and Switzerland.
"This partnership marks a critical step in our development, with the support of a major financial institution and additional resources to fuel our growth," said De Schrevel.
Within the framework of this partnership, Gambit Financial Solutions will remain independent from BNP Paribas, keeping its own governance, culture and management unchanged.
Senior management of Gambit Financial Solutions consists of De Schrevel, chief executive officer; Laurent Bodson, chief operating officer; Gaël Minon, head of digital solutions; Séverine Plunus, head of corporate affairs; and Ken Van Eesbeek, head of sales.
BNP Paribas was the second most active provider of structured products in Europe in 2016 with a 7% market share and over €7.2bn in sales, according to SRP data. Year to date, the French bank has been the most prolific issuer with over 125,000 products marketed worth €4.2bn, and will expand its structured products book after reaching an agreement with ING to acquire certain assets and liabilities related to the Dutch bank's structured notes business with an estimated notional value of €5bn.
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