The French banking group has sold a stake in its tech subsidiary Azqore to a global consultancy group.

France-based Capgemini, the global consultancy, has bought a 20 per cent stake in Azqore, Indosuez Wealth Management’s subsidiary that concentrates on tech outsourcing services and bank transactions for the wealth sector.

The deal is expected to be complete by the end of October, Indosuez Wealth Management said yesterday. Financial terms were not disclosed. 

Indosuez Wealth Management is the global wealth management brand of Paris-based Crédit Agricole group, which means that the transaction keeps the subsidiary in French hands.

Azqore, which has operated for 25 years, offers the kind of expertise in banking, technology and digital change that is now in hot demand as financial services are disrupted by online business models, artificial intelligence, blockchain ledgers and other technologies. The technology outsourcing and banking transactions market for wealth management companies and private banks is expected to grow by more than 30 per cent by 2020, Indosuez’s statement said, citing data in 2017 from Boston Consulting Group.

Capgemini’s investment will let Azqore accelerate development of its proprietary S2i platform and give clients new services such as training and specialised consulting. Capgemini will also contribute to the development of Azqore in Switzerland, the eurozone and Asia.

“Wealth management players are facing an increasingly complex regulatory environment and the need to strengthen their operational efficiency. The combination of our banking expertise, notably in processing transactions and risk management, with Capgemini’s expertise in digital and technology services, will allow us to deploy effective and innovative solutions,” Jacques Prost, chief executive, Indosuez Wealth Management, said.