BrazilCapgemini buys 20% stake in Indosuez Wealth Management
Capgemini has acquired a minority stake in Azqore, a subsidiary of Indosuez Wealth Management, a global wealth management company which is part of Crédit Agricole. With Capgemini on board, Azqore, which specialises in technology outsourcing services and banking transactions for the wealth management sector, expects to ramp up its digital capabilities to meet booming demand for digitisation services.
“Wealth management players are facing an increasingly complex regulatory environment and the need to strengthen their operational efficiency,” highlighted Jacques Prost, Chief Executive Officer of Indosuez Wealth Management. The agreement with Capgemini will in his eyes allow the union to combine Azqore’s “banking expertise, notably in processing transactions and risk management” with Capgemini’s “deep expertise in digital and technology services”, enabling the two partners to “deploy more effective and innovative solutions”.
“This agreement paves the way for a new phase in the development of Azqore – our ambition is to create a global benchmark in technology and banking transactions for the Wealth Management sector,” Prost continued.
Following a year-long working relationship on engagements, Capgemini has taken a 20% stake in Indosuez Wealth Management (terms have not been disclosed), with the funds primarily to be used to accelerate the functional and technological development of its proprietary S2i platform. The France-headquartered company will also leverage Capgemini’s expertise in management consulting and creative (provided by Capgemini Invent) and technology skills (provided by Capgemini) to craft new services and offerings for its clients. Meanwhile, the Paris-headquartered services giant (Capgemini has over 200,000 employees globally) will further work to bolster Azqore’s internal operations with a focus on Europe (Switzerland and France) and Asia (Hong Kong and Singapore).
With over €110 billion in assets under management, Indosuez Wealth Management group is one of the globe’s larger providers of wealth management services; in terms of Tier 1 capital, the firm ranks 13th in the world. The company has 3,100 employees in 14 countries, including in Europe (France, Belgium, Spain, Italy, Luxembourg, Monaco and Switzerland – Europe’s largest wealth management hub), Asia-Pacific (Hong Kong, Singapore and New Caledonia), the Middle East (Abu Dhabi, Dubai and Lebanon) and the Americas (Brazil, Uruguay and Miami).
Backed by Capgemini’s capacities, Azqore’s Chief Executive Officer Pierre Dulon believes the company is well positioned to lead the way in digital transformation services, a force he describes as disruptive. “We believe that digital innovation will fundamentally transform the wealth management sector." While executives in the asset and wealth management sector are positive about the growth outlook, they at the same time pinpoint digital as both their top priority and challenge for 2018 and beyond. However, a study by Alpha FMC among 15 large wealth management firms, found that wealth managers are struggling with execution, and along the way tend to underestimate the efforts needed.
On the back of the spotlight on digital, the technology outsourcing and banking transactions market for wealth management companies and private banks is expected to grow by more than 30% by 2020, according to an analysis by The Boston Consulting Group.
Commenting on the investment, Thierry Delaporte, Chief Operating Officer at Capgemini, said, “Capgemini has demonstrated its leadership in digital transformation on a global scale. We are thrilled to be taking this new strategic step with Indosuez Wealth Management to consolidate our offer aimed at international clients in the wealth management sector.”
Earlier this month, Capgemini acquired French digital marketing consultancy June 21, and the division is being integrated into the recently established Capgemini Invent.
