Inversis, a unique model in securities services arrives in Luxembourg

SFF Magazine June 2024

Topics: Alternative Investment, Fund distribution, Technology

The financial sector, beyond the challenges arising from its intrinsic dynamism, is immersed in a context of major challenges as a result of changes in the environment. Changes in regulation (MiFID I, MiFID II, FATCA-CRS, ECMS and those yet to come, such as RIS), technology (cloud, microservices, AI), organizational models (from purely face-to-face entities to hybrid models with offshoring of teams), among others. A competitive environment where, in addition, changes are happening faster and, in many cases, concurrently with each other.

The need to adapt to this ecosystem requires new organizational models that allow internal resources to be focused on the real business, with a “light” organizational design that facilitates the adaptability required by the business environment.

In order to offer financial institutions a business solution in line with these challenges, Inversis has developed its service model, based on its technological platform, designed since the company’s beginnings more than 20 years ago. Inversis, a wholly-owned subsidiary of Banca March, is the leading B2B services company in Spain in offering global technological solutions for investment in financial instruments and outsourcing these services to regulated financial institutions (credit institutions, securities firms and agencies, investment and pension fund management companies, insurance companies and new players in the financial sector such as neo banks, roboadvisors and other fintechs…).

“In order to offer financial institutions a business solution in line with these challenges, Inversis has developed its service model, based on its technological platform, designed since the company’s beginnings more than 20 years ago.”

Based on its capacity to provide the service up to the level of segregated accounts (the securities accounts that end clients have open at their financial institutions), Inversis offers a value proposition that combines investment services (reception, transmission and execution of orders, settlement of transactions and custody and administration of balances of financial instruments) with a multi-product (equities, fixed income, investment funds, ETFs…), multi-market and multi-currency approach. All this, embedding in the service the regulatory aspects that underlie the provision of these services to end customers. A modular value proposition with multiple configuration options, allowing a customization of the service according to the underlying business of its institutional clients. In short, a truly global, one-stop-shop solution that, due to its multi-jurisdictional nature, allows Inversis to support its institutional clients in different geographies. All of the above allows Inversis to collaborate with entities not only in Spain, but also in Europe (Andorra, Ireland, United Kingdom, Switzerland, Luxembourg) and Latin America (Chile, Uruguay and Peru).

Aware of the diversity of the new financial ecosystem and the need to offer value-added solutions and tools to boost the business of its institutional clients, Inversis’ transactional solutions are integrated with value propositions developed by third parties. Elements such as search engines, comparators, technical or fundamental analysis contents, ESG… All in one place and, most importantly, providing transactional value to these products.

In this same marketplace approach to investment products and solutions, we should highlight Inversis’ investment funds and ETF distribution platform, Funds Globe, which gives its institutional clients access to nearly 60,000 funds from some 600 asset managers.

An expanding model, in terms of locations and solutions

In line with its commitment to service for institutional clients, Inversis has not only been enriching its value proposition with new functionalities, both its own and those of third parties, as mentioned above, but has also set itself the goal of accompanying its clients in their internationalization strategies. Hence, after exploring various markets of potential interest to institutional clients, Inversis has initiated a process of international growth, both organic and inorganic. The objective is to become the global partner of clients in the financial asset distribution business.

With this premise, Inversis currently holds 40% of the capital of ADEPA, a Luxembourg group specialized in fund services. With this alliance, Inversis offers its clients the possibility of developing an international product offering through the creation and promotion of vehicles domiciled in Luxembourg, both UCIT and alternative funds and other types of structures (venture capital…).

Inversis accompanies this new product development offering with the opening of its own branch in Luxembourg and the acquisition of the institutional and depositary business of Banque Havilland, completed in May of this year. A truly integrated business solution, combining the services of ADEPA (as ManCo, administrator and transfer agent), with those of Inversis as depositary and global distribution platform (which facilitates access to these products for its more than 130 institutional clients).

“Inversis currently holds 40% of the capital of ADEPA, a Luxembourg group specialized in fund services. With this alliance, Inversis offers its clients the possibility of developing an international product offering through the creation and promotion of vehicles domiciled in Luxembourg, both UCIT and alternative funds and other types of structures (venture capital…).”

Inversis’ value proposition continues to expand, not only in markets, but also in solutions. With this objective in mind, Inversis acquired the technology company Openfinance from SIX BME, thus integrating into its portfolio a solution specifically designed to boost advisory, discretionary management and investment portfolio reporting activities. A lever that aims to reinforce the added value delivered by institutional clients to their end clients, while at the same time responding to some of the challenges posed by new regulatory trends.

All these initiatives are just a sign of Inversis’ commitment to the growth of its clients and of the 110,000 million euros of financial assets under management.