The following editorial, published in Global Custodian magazine – Winter 2023 edition, provides some insight into BNP Paribas’ Securities Services business award win as Best Agent Bank in Latin America at Global Custodian’s Industry Leaders Awards 2023.
Leaders in LatAm: A look at a banner year for BNP Paribas in Latin America
BNP Paribas’ Securities Services picked up Global Custodian’s award for Best Agent Bank in Latin America at this year’s Industry Leaders event based on its survey results, in what has also proven to be a standout year for the asset servicer in the region through a culmination of developments.
It has been a foundational year for BNP Paribas’ Securities Services business in Latin America (LatAm). A combination of flagship clients onboarded, new services and platform enhancements, alongside industry-wide recognition, has set the tone for this growing franchise in 2023.
The winning approach contains a large dose of client focus, plus product and service innovations, all built on a foundation of long-term commitment to this important region. BNP Paribas’ investments in LatAm stand in contrast to some market participants that have retreated or scaled back operations in the region in recent years.
Part of the success can be attributed to client centricity and a series of key solutions deployed for clients in the last several years. Concrete examples include: a flexible operational configuration designed according to clients’ typology and requirements; a flexible cash account model according to clients’ needs; third-party FX; competitive cut-off times, highly praised as the most competitive in the market; and a dedicated client cell dependent on a client’s size and volumes. BNP Paribas’ focus on client selectivity allows for greater customisation and tailor-made solutions.
Securities Services is a key franchise for BNP Paribas’ CIB division. Its journey in LatAm began in 2010 with the launch of local custody and settlement solutions in Brazil, followed by several flagship client wins. In 2013, Colombia operations were launched, followed by Peru in 2016 and Chile in 2021.
Since then, BNP Paribas has expanded its service offering to include other solutions, such as asset and funds services, and equities and derivatives clearing for non-resident clients. This offering, combined with custody services, has brought significant operational efficiencies and automated settlement processes for equities and listed derivatives.
As a unique feature among its competitors, BNP Paribas offers a centralised booking model for Hispanic LatAm, which means a single gateway to Colombia, Chile and Peru, out of Bogota. A single legal agreement for three different markets along with a simplified approach to DDVs allows BNP Paribas to have a holistic view of clients’ activities and operations in those three markets, generating operational efficiencies with quicker escalation and queries management, while also simplifying the onboarding process and client documentation.
BNP Paribas’ centralised model aligns to the NUAM market initiative in Hispanic LatAm. The integration of the financial market infrastructures in Chile, Colombia and Peru is expected to bring several benefits to the region – greater liquidity, increased operational efficiency, and the establishment of conditions for the continued long-term success of capital markets in the region. The concept of a centralised model aims at facilitating access, and driving efficiency and simplification, something that BNP Paribas is intimately familiar with in the Euronext and T2S markets.
Looking ahead, BNP Paribas is well-positioned to continue making strides in the region, supported by its local-global model in Securities Services, and an integrated bank approach.