BNP Paribas and Allfunds have announced that they have entered into an agreement to create fund and wealthtech platform.
This agreement will enable BNP Paribas and Allfunds to build on each other's expertise to develop next-generation fund distribution services.
BNP Paribas Securities Services 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.
BNP Paribas and its clients will benefit from the partnership with one of the leading wealthtech platforms in Europe; Allfunds' partners will expand their business reach and will 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."
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.