BSI, founded in 1987 in Monaco, specialises in wealth management. It benefits from longstanding experience, professional competence and the BSI Group’s international contacts. Meet Umberto Alonzo, Managing Director.
BSI has some big news
Yes, after 17 years we have a new shareholder, BTG Pactual, which has taken over from Groupe Generali Assurances. This is very positive for us, as BSI can continue its growth with our new shareholder’s support. BTG Pactual is a key player in the South-American banking industry benefiting from broad global reach with headquarters in Brazil and is listed on the San Paolo Stock Exchange. It was part of UBS before being bought out by its own management in 2009. All the top managers are partners. BTG Pactual operates in three main business areas: Investment Banking, Asset Management and Private Banking. Our extensive experience in this field is complementary and we are now the Group’s international skill centre for Wealth Management. We are one of the oldest Swiss banks, benefiting from 140 years’ experience in Private Banking, and have been based in Monaco for over 25 years. All of which places us in a very interesting position.
Your presence is international with BTG Pactual
Even before joining the BTG Pactual group, we were a highly diversified entity based in over 20 countries, in Asia, Central and Eastern Europe as well as South America. We are present in Europe through our parent company in Switzerland and branches in Luxembourg, Milan in Italy and Paris in France. With BTG Pactual our international expansion has developed, so the group is now in 29 countries. The general tendency is now to focus each unit on a defined number of markets, by specialising by country and by customer type. Monitoring and compliance work is becoming highly specialised, which justifies this decision.
Why did BTG Pactual decide to invest in Monaco?
The Principality of Monaco is in line with our new shareholder’s target market idea – wealthy customers to whom we propose the broadest possible offering. We and our new shareholder share the same manner of serving customers in a personalised way and the same vision of service adapted to High Net Worth Individuals. And following our acquisition by BTG Pactual, BSI envisages a long-term presence in Monaco, the investments made for our new premises being the clearest proof of that. The bank is now visible and our customers are proud of its elegance.
What do you think of the recent tax exchange agreement the government of Monaco signed with Italy?
The concept of Monaco residency has become even stronger with the signing of this agreement. This is proven by the rise in applications for residency and the buoyant property market in Monaco.
How has your development strategy evolved?
We aim to be the reference bank for local customers and a reference bank for international customers. We are focusing on local customers in order to serve them better. To this end, as of several years ago we recruited managers with very specialised backgrounds. Our customers have demanding requirements. Above all they expect the best and fastest order execution from us and good performance results for management mandates. We have a high percentage of mandate customers, much higher than average in the financial centre, which is a source of pride for us. To develop our investment offering, from January 2016, BSI will have a new Chief Investment Officer, Mr. Yves Bonzon - one of the market’s most renowned, with notable banking experience. We aim to develop our discretionary management mandates even more.
For a long time, we have also worked with the financial centre’s key asset management companies with mutual satisfaction. And 5 years ago we established our own asset management company, BSI Asset Managers. This winning development model has enabled us to significantly increase our managed assets and become even closer to the Monegasque customer base. Fully independent as regards data confidentiality and lines of management, it also works with other banks in the financial centre. Customers appreciate the non-standardisation of independent asset management companies and are reassured by the relationship with an enterprise which is part of a sound banking group. The two offerings are complementary.
Last, we have developed our products and offer mortgages and Lombard loans; we are still new to this market but very well equipped. We have become the Group’s mortgage skill centre, including for France.
What does the future hold?
With BTG Pactual we are part of a sound, well capitalised group with 5000 employees – a dimension which gives us greater international diversification and will provide us with further development and growth opportunities, both internally and externally. We believe in the attractiveness of Monaco, which is why we are investing in terms of structure, personnel and new software. Institutions such as the Strategic Council for Attractiveness are exceptional and exist nowhere else. For high income customers, the Yacht Club, Festival du Cirque, Monte-Carlo Rolex Masters and Grand Prix are extremely pleasing and form part of the high quality of life, not to mention Monaco’s security which is a big plus. The tax framework is important, and here the tax agreement with Italy helps us in some ways. At our level we attempt to be an engine of attractiveness. With the help of our parent company and through our knowledge of the different markets, we are also targeting the institutional client base.
