BNP Paribas Wealth Management pioneers value creation for clients through sustainable investing and new digital tools.
By Global Private Banker
BNP Paribas Wealth Management is recognised as the Best Private Bank – Western Europe at the Global Private Banking Innovation Awards 2022.
Global Private Banker evaluates the Best Private Banks at a global, regional, and country level based on unique achievements and business excellence of participating institutions for the period under review. This is documented by those private banks that have recorded strong financial performance, maintained growth in Assets under Management (AUM) and have demonstrated a track record of supporting private wealth customers through digital innovation. Winning private banks including BNP Paribas Wealth Management possess the requisite operational footprint, technological capabilities, and depth of mandates to service the unique long-term needs of its clients.
Financial Performance: France central to bank AUM and income growth
BNP Paribas Wealth Management’s financial performance in 2021 has been substantiated through its strong presence and engagement across Europe. It is effectively the largest private bank in the region with €422 billion (USD $590 billion) of Assets under Management (AUM) globally in 2021 that grew at 8.2% YoY overcoming adverse operating conditions induced by the pandemic. France remained the Private Bank’s core market with €122 billion AUM (USD $145 billion) or just under one-third of the total global AUM enabling the Private Bank to capture 25% of the domestic market share, while both revenue and fee income rose as loan activity picked up and net asset inflows consolidated. Likewise, the Private Bank prioritised key markets in Western Europe including Belgium that contributes to €75.7 billion in AUM (USD $ 89.5 billion), Germany where a targeted proposition for UHNW entrepreneurs has been launched and the Netherlands that saw new private banking centres being established.
Digital Innovation: adapting to fast-changing investor needs
BNP Paribas Wealth Management continues to register effective digital traction with 80% of clients using at least one e-banking solution. The Bank’s co-created MyWealth platform with clients has seen strong digital engagement with 80% of private banking accessing the platform either via the mobile banking application or online. On the advisory side, Allocation designer has helped transform private bank – client relationships as the Private Bank’s 200+ inhouse experts and relationship managers utilise the modelling tool to run strategic asset allocation implications on portfolio returns and help clients visual growth opportunities. This is reinforced with MyMand@te, which has also resonated with clients as a personalised discretionary portfolio management service that now encompasses 4000 mandates under management translating in to €432 million (USD $510 million) in assets providing clients with the flexibility, simplicity and optionality needed in investment decision-making.
Service Enhancement: sustainable investing redefined with myImpact
An important value creation for clients has been the Private Bank’s myImpact tool that has had a compelling effect towards more responsible investment decision-making aligning the philanthropic and social goals with available thematic-based investments. Resultingly, following the use of myImpact almost 100% of clients modified their portfolios to include sustainable assets, in consultation with their designated relationship manager. Moreover, the Clover rating methodology introduced to clients in 2021 is an Environmental, Social and Governance (ESG) scoring tool that can be deployed across all asset classes and enables investors to make more informed portfolio construction decisions. This concerted strategy of integrating sustainability within the asset allocation framework has resulted in a stellar 50% YoY growth of responsible AUM since 2011.
In France, adopting ESG based investment principles in both discretionary and non-discretionary portfolios has now become the norm and BNP Paribas Wealth Management has seen socially responsible investment mandates jump by more than 100% in its home market.
The Global Private Banking Innovation Awards 2022, organised by Global Private Banker, exist to identify, honour, and celebrate the world’s preeminent Private Banks, Family Offices and Wealth Managers that demonstrate elite levels of advisory, unbiased research and bespoke solutions, together with their distinguished individuals’ contribution to client service. Global Private Banker Awards are accolades of excellence and distinction, attributed to outstanding players; and provide unbiased and objective benchmarks for the global wealth industry. The GPB Awards is the world’s most authoritative and transparently judged awards program, and received more than 220 entries from 50 plus participating institutions during the 2022 awards cycle.