The Paris-based groups would, if the agreement wins regulatory approval, reach an arrangement under which back-office and related IT work shifts to a subsidiary of Indosuez Wealth Management.
Societe Generale has inked a deal with Indosuez Wealth Management subsidiary Azqore to execute back-office operations and a chunk of the IT services of SocGen's private banking international entities.
The agreement, if approved by regulators, would cover Societe Generale Private Banking in Luxembourg, Monaco and Switzerland and the Kleinwort Hambros, based in London.
“In a profession facing major transformations and an increasingly demanding environment, this agreement will enable us to offer our clients enhanced services while improving the performance of our international private banking business model,” Patrick Folléa, head of Societe Generale Private Banking, said. “By leveraging the knowledge and technological expertise of Azqore, we will focus entirely on managing our long-term relationships with our clients which is our core role as private bankers.”
The agreement must be approved by competent bodies and regulatory authorities. Once allowed, the back-office and related IT services will shift to Azqore for the Societe Generale entities; it will happen in several stages, starting from 2022.
Jacques Prost, chairman of Azqore and group CEO of Indosuez Wealth Management, said: “This agreement aligns with Crédit Agricole Group's strategy to pool its industrial platforms with prestigious partners in the finance sector.” (Crédit Agricole is the parent of Indosuez Wealth Management.)
“It also furthers the goal of Indosuez Wealth Management and Capgemini, as shareholders of Azqore, to develop an industry-leading provider of IT and banking outsourcing services for wealth management,” Prost said.