Transcript of the video
Hello, my name is Arnaud Jamez. I am Head of Discretionary Portfolio Management at BNP Paribas Fortis Private Banking, based in Belgium.
I would like to tell a story that illustrates how the strength of the BNP Paribas Group, the “One Bank” integrated model and our solutions-based approach can serve the interests of our clients who are Entrepreneurs and Families.
Let me begin. A certain group was owned by two families whom I will refer to as “family 1” and “family 2” for anonymisation reasons. Both families were banking with our competitors, and at the time, they did not want to have anything to do with us.
In two thousand and nine, Corporate Banking Belgium had introduced the father of family 1, and CEO of the group in question, to Wealth Management because they saw growth potential. We had always been present and had given advice to family 1 over the years, advice that both the father and his two children benefited from. But we received nothing in return. All the money they made was channelled back into their business.
What’s more, despite many explanations from us, they associated MeesPierson, owned at the time by Fortis Private Banking, with the collapse of Fortis Bank during the US subprime crisis.
A few years later, in twenty sixteen and seventeen, there was a turning point in the business relationship. The sale of the property company owned by the two families was in the offing.
Family 1 needed short-term financing to spice up the deal. And they needed to reimburse a current account, among other things.
Wealth Management granted around 12 or 13 million euros in credit to the members of family 1. The only condition was that they had to place the sale’s proceeds with BNP Paribas Fortis. Of course, we endeavoured to win over the other family of shareholders, in other words family 2, but to no avail. Family 2 did not want to meet us before the proceeds of the sale hit their account. What’s more, their bank accounts were with other financial institutions. A real obstacle for taking the relationship a step further.
The Wealth Management DNA is to support our clients throughout all their projects, and we presented our full range of services to family 1 focusing on two main areas, namely wealth management and wealth engineering! Our strategy really paid off. The excellent relationship, built up by Corporate Banking Belgium and Wealth Management over the years, helped us to convince family 2 to meet with us ahead of the closing of their sale, which represented 6 million euros of credit.
During the discussion, our wealth engineer identified a legal and tax issue that would have negatively impacted both families if we hadn’t stepped it to avoid the worst! Ninety percent of the funds from the sale were paid into BNP Paribas Fortis accounts. The Wealth Manager Guy Belleflamme was in charge of allocating the various amounts to the different bank accounts. So we discovered who our competitors were!
Although wealth engineering was, and has remained, an important area for both families, wealth portfolio management has nothing to be ashamed of at all! Indeed, the wealth manager played an important role in the relationship, helping the clients to build an investment portfolio, providing regular information and financial education. Consequently we successfully retrieved funds that had been previously placed with the competition.
After presenting our offer to both families, we were invited to return a second time to propose some solutions that we had discussed during the first meeting. Considering the large family wealth at stake, our proposal was based on goal-based investing through building blocks. We signed one contract for each investment goal and for each investment horizon.
We started with a tailor-made portfolio for one family, and personalised mandates in line with their preferences for the other family. Since then, we have put in place a contract for managing cash as well as “Iris” mandates for future generations. The “One Bank” approach didn’t stop there! The clients subscribed to several Private Equity and Private Infrastructure funds. The expert at the local level regularly offered new products. And once again we were able to make a difference.
Cross-selling through the “One Bank” model bore fruit when we presented some of our club deals. One example was the acquisition of a real-estate company in Belgium. Another was the financing of a start-up in the biotechnology industry. And thirdly, a reverse cross-selling deal with Corporate Banking Belgium relating to a real estate project.
In conclusion, Wealth Management is a long-term service with a capital “S”. The close relationship with clients, our Wealth Management experts and the Group’s other business lines guarantee the highest level of quality and success for our clients.
We not only sell products. We also bring solutions which serve our clients’ interests.
Thank you for your attention.
If you would like any further information, please contact your relationship manager, or visit our website.