Julius Baer has opted for Luxembourg as the hub for its European business. The expansion already is underway, the local country boss said in an interview.
Julius Baer in Luxembourg until recently was a purely domestic private bank. Now, the Swiss company has decided on a new strategy, following the acquisition of the Commerzbank unit and the changes affecting cross-border banking.
Luxembourg will become the hub for the European business, complete with an overhauled IT platform. And the local business will serve as a model for the group as a whole, Luxembourg head Falk Fischer told «Luxemburger Wort» in an interview. Fischer used to manage Commerzbank in the Grand-Duchy.
Europe and the Bahamas
In June, Julius Baer had announced that European clients would be booked in Luxembourg starting next year. Fischer said that the decision affected clients from France, Belgium, the Netherlands, Spain, Portugal and Scandinavia. Luxembourg would also receive the clients from Monaco and Nassau, he added.
The branch in other words will be built out to serve as a full services center. For this purpose, the bank needs to hire specialists for investment advice, investment management, IT, operations, treasury, compliance, insurance and financial planning – as long as its growth rate allow it to do so, Fischer added.
Banking Hub Luxembourg
«People here in Luxembourg have an international background, they have been dealing with the international banking industry for many years already, they are very well experienced in that. If you want to recruit specialists, which you are going to need to run your business, you've got it here in Luxembourg,» Fischer said.
The relationship managers based in Luxembourg will be required to travel very frequently to acquire new clients in the respective markets, he added.
Security and Stability
Luxembourg remains an attractive market for international, wealthy clients. The Grand-Duchy offer a secure and stable environment: «Our clients come from so many countries around the globe, and their requirements are truly international, so where do you want to go,» Fischer asked.
