BNP Paribas Securities Services won the European Custodian of the Year award at the 2024 Funds Europe awards—for the third year in a row. Patrick Colle, head of securities services and chairman of financial institutions coverage, BNP Paribas, discusses the role of blockchain, AI and data security in shaping the future of custodianship.
As a multi-asset servicing specialist, BNP Paribas Securities Services supports clients in both investment management and cross-border distribution. With a presence in over 90 markets, it combines global connectivity with deep local expertise, enabling institutional clients to navigate the complexities of an evolving financial landscape. As a key pillar of BNP Paribas’s diversified banking model, it integrates securities servicing with the Group’s treasury financing, advisory, and global markets solutions.
BNP Paribas Securities Services won the European custodian of the year award for its strong submission and a proven track record of delivering consistently high service quality. According to the judges, the firm’s attention to detail and commitment to excellence in custody services supported by technology made it the standout choice in this competitive category. Patrick Colle, head of securities services and chairman of financial institutions coverage, BNP Paribas, talks about trends shaping the industry.
How do you see trends like digital assets and blockchain technology reshaping the role of custodians in the coming years?
Distributed ledger technologies could play a valuable role in the future of the securities industry, potentially creating new business models and tangible benefits in terms of efficiency, transparency and security. As the industry progresses in this field and a proper regulatory framework takes shape, we have seen the beginning of a shift from isolated experimental programmes to wider cross-industry collaborations. This is something we have been eager to embrace at Securities Services, as we believe in the importance of interoperability.
Over 2023 and 2024, contributing to larger-scale initiatives, such as the European Central Bank’s wholesale Central Bank Money exploratory programme, has been a strong focus for us, and we are excited about what lies ahead.
What is the secret to balancing the need for compliance with delivering innovative client experiences?
Keeping our clients’ assets and data safe whilst delivering innovative client experiences is not incompatible. As a custodian, we always follow a risk-based approach – to monitor and mitigate risks, while continuously innovating to help our clients enhance their operational efficiency and focus on their core business.
This is where the collective power of the BNP Paribas Group comes into play. Our innovation programmes often span the whole Group – as is the case with AI, for instance– which allows us to approach certain topics from multiple angles simultaneously, allowing us to identify and handle the various risks associated with more automation and efficiency.
Earlier in 2024, we delivered a transformative upgrade to our main client web portal NeoLink. Our clients can benefit from NOA, our AI-powered virtual assistant on NeoLink. Using advanced algorithms for intent recognition, NOA helps clients find the information they need quickly and efficiently. To ensure security and scalability, NOA leverages a set of application programming interfaces to interact with the bank’s underlying systems, and has been specifically trained for the securities services environment. With the rollout of the next generation of NeoLink, NOA has been upgraded with augmented skills and can now answer even more questions.
“Over 2023 and 2024, contributing to larger-scale initiatives, such as the European Central Bank’s wholesale Central Bank Money exploratory programme, has been a strong focus for us, and we are excited about what lies ahead.”
What is your take on the role of data security and operational resilience in today’s custody services?
As the trusted custodian and data partner of our clients, it is crucial for us to provide reliable, high-quality data, as it powers everything we do. Ensuring data safety, simplifying access to it, and guaranteeing its accuracy and coherence are thus paramount in driving our data strategy.
We continue to invest steadily in limiting risk factors linked to data and minimising operational burdens such as reconciliation efforts. Not only is this beneficial to our clients, but it also enhances our own activities and interactions with all partners. As part of our data strategy, we strive to enable clients to leverage data seamlessly and with confidence, and in turn, make properly informed strategic decisions.
Finally, what makes your firm stand out?
BNP Paribas’ Securities Services business stands out as the only European player among the top five global custodians. Our complete multi-asset class, middle-to-back office solution covers all major markets, enabling clients to maximise their investment opportunities worldwide. As a pillar of BNP Paribas’ diversified and integrated banking model, we at Securities Services can provide clients with powerful solutions closely integrated with the best-in-class capabilities of the Group’s other business lines.
We are anticipating our client’s needs by being at the forefront of technology in asset servicing, partnering with leading fintechs and developing our own platforms to deliver utmost operational efficiency, a multichannel client experience, as well as a comprehensive range of sustainable finance solutions.
