Francesco Grosoli is both Managing Director of Barclays Bank in Monaco and Managing Director Wealth & Investment Management Europe for the Barclays Group. Since 1989, Monaco has benefitted from Francesco’s expertise and private banking know-how.
Barclays is one of the oldest foreign banks in Monaco. That is an important feature.
Indeed, Barclays opened a Branch in Monaco in 1923, a pioneering move as we were the first foreign bank to set up here. We have been in the Principality for 92 years, always with a local approach at the heart of Monaco’s economy. Our offices are still in the original building which is proof of our longstanding roots.
Are your customers mainly Anglo-Saxons?
Of course the British community is of significant size in Monaco, but two thirds of our customers are Monaco residents of other nationalities: French, Italian, Monegasque, Russian, Swiss etc. and many others, reflecting the 115 different nationalities among Monaco résidents. The bank grew greatly at the start of the 21st century when Monaco was experiencing a great boom, with an acceleration in the past seven years targeting an international customer base mainly established in Monaco.
Some specifics?
Firstly, we cannot ignore our genes. We are the oldest British bank and one of the world’s oldest banks combining tradition with modernity. We have just celebrated our 325 year anniversary, on 10 June. Barclays Monaco is primarily focused on wealth management for high-level customers who are demanding and international.
I would say our local activity focuses on three main areas:
Traditional banking services: to meet the needs of our customers in Monaco, we provide a vast range of banking services such as current accounts, payment methods (credit cards, cheque books etc.), counters (open non-stop, 9am to 4.30pm) and also a strong-room in which our customers can store valuables such as works of art.
Wealth management: our core business.
Our investment experts work directly with our most sophisticated customers, covering many products and asset classes. We combine a unique investment philosophy, in-depth asset allocation expertise, extensive research capabilities, and undisputed excellence in execution, in order to best serve the customers we advise. We customise our services according to each of our customers’ profile and objectives, providing consultancy services on a variety of products ranging from currency market investments to the creation of custom bond portfolios, as well as hedge funds and private equity, but also the selection of individual securities in the development of option strategies. Moreover, our range of structured products provides opportunities for additional returns to our direct or discretionary management strategies. Our asset management activities are run by our management company “Barclays Wealth Asset Management Sam”. Our portfolio management teams manage customers’ investments through separate portfolios and specialised investment funds. Our customers risk profiles are varied and can be customised – we comply with them using sophisticated asset allocation techniques. We combine our strategic and tactical convictions while controlling risk, to ensure that performance is consistent with customers’ expectations. With our open architecture, we benefit from the know-how of many international investment management experts. The Advisory business is responsible for managing consultancy directly with customers. In this context the banker, in close collaboration with a dedicated investment expert, regularly monitors customers’ asset allocations to help them choose investments in line with their profile and objectives.And finally, the “Execution” part: a trading room open until 10pm every day of the year and manned on Monegasque bank holidays.
Lending: Barclays Monaco is one of the Principality’s major credit players. In recent years, we have developed great financing expertise. We help our customers optimise their movable assets through leverage strategies or, more simply, overdrafts. But we also support their property projects and more particularly the financing of exceptional property purchases. Our product expertise is based on a 20 strong team with an average experience of 10 years in the finance sector and 5 years in the Barclays Group. 50% of team members come from investment banks and 50% from private banks. 70% of them have had international work experience and 30% have great knowledge of the Monegasque market. It is also a multicultural team with 7 different nationalities, all of which goes to meet our customers’ needs better. Besides our local private banking services, we are a portal through which to access the capabilities of our Group. We facilitate connections with the other Group divisions (Investment Banking and Corporate Banking) for our international customers.
What is the Barclays Monaco strategy: loyalty or winning customers?
The two go hand in hand; it would not be conceivable to split them. Customers are at the heart of our business. Our role is to give them added value. Winning them is achieved through structured initiatives led by an extremely dynamic commercial animation team. We also rely on a tailored events strategy, where we often combine the passions of our customers with investment themes for the new generation or philanthropy. This loyalty creation and winning of customers is also based on a key line for digital strategy development, which takes in our online services and our approach to marketing, but also a number of training sessions for all employees centred on “Digital Immersion”. Our e-banking system provides access which is centralised, quick and secure for our customers. Our online banking services allow account access at the customer’s convenience to make all types of payments and transfers, and offer an overview of all transactions and portfolios as well as access to digitalised statements. We are able to offer a very sophisticated Family Office which implements the competence of our investment banking division to structure complex financing solutions. Moreover, with our colleagues in London, we have created an "Investment Club" which enables us to offer sophisticated, carefully-selected customers unique investment opportunities in specific assets such as unlisted companies or interests in venture capital projects. We try to position our marketing activities differently from other institutions. We have recently exhibited, within our walls, remarkable artists such as Arnaldo Pomodoro, Michelangelo Pistoletto and Damien Hirst, whose crystal butterfly collection we presented in collaboration with Lalique. We are present at the major events in Monaco with “bespoke” programmes organised to meet our customers’ and prospects’ expectations. But Barclays Monaco is also very close to the local community. With our "citizenship" initiatives, we carry out local actions e.g. pre-Christmas distribution of thirty laptops to needy and deserving children in the region, nominated by their schools. In this context we are also highly involved in Fight Aids Monaco and No Finish Line. We have also set up a partnership with the International University of Monaco (IUM) to create synergies with future generations of private bankers. It is a lasting collaboration which demonstrates our will to support Monaco at all times.
Your career has mainly been in Monaco, so how has the financial centre evolved? What main changes have taken place?
Indeed, my family came to Monaco in 1975 and I spent my childhood and teenage years here. After studying at the University of Nice, my first job was with BSI Monaco. Before joining Barclays Monaco, I worked at HSBC Private Bank Monaco, where from 2005 onwards I was “Head of Private Banking” and a member of the Executive Committee. I became Managing Director of Barclays Monaco in May 2007. At the time the bank employed 85 people whilst today we number over 185. We have more than doubled in size and more than tripled in business volume. I knew a Monaco with a multitude of financial centre players, mainly focused on the Italian market. Then the “Mediterranean” financial centre became more international, banking services became more sophisticated, and English is now the common language in our business. The quality of services has greatly improved. The financial centre is increasingly competitive and includes many occupations. We are now internationally recognised as a high-end banking centre. In July 2014, I was promoted to “Market Head” for Switzerland and in January 2015, I was named Managing Director Wealth & Investment Management Europe for the Barclays Group (with a staff of over 600 people).
What do you think of the mandatory professional certification system?
I think it is a really excellent initiative for Monaco. It is essential that investors know about it! It fits perfectly into the framework of a modern, dynamic and regulated financial centre.
Asset management companies are increasing in number, are they competition for bankers?
The financial centre always needs professionals, and their skills of course! Competition is always a good opportunity for improving one’s services. Our environment is increasingly competitive, which forces all industry players to differentiate themselves to make a real difference. I am in favour of this development: more competition means more excellence!
How is the Monegasque financial centre positioned compared with Luxemburg, Geneva and London?
It is hard to make comparisons with these other three key financial centres which are very different from each other and all have very different characteristics from Monaco’s own. We can, however, allude to Monaco’s small physical size, dense population, high-level demanding customers and very high growth potential,also its location between sea and mountains, its climate, most importantly its safety record – a key element, and finally its institutional stability. Our customers live here, so they are present and accessible.
All this definitely makes it a unique model. However, it is clear that we must continue to grow, focusing mainly on increased transparency, more regulation and even greater professionalism. The combination of these three factors will undoubtedly lead to Monaco’s greater appeal. The actions and thinking behind the reforms necessary to the financial centre’s development, conducted by the local organisations such as the Monegasque Association of Financial Activities (AMAF) or the Financial Activities Supervisory Commission (CCAF), certainly contribute to that goal. Finally, we should not forget one of this country’s basic characteristics. It is one of the world’s rare examples where the absence of debt is combined with a budget surplus. "A unique model for a unique financial centre!”
