Société Générale Securities Services has revealed that it is looking to rapidly expand into emerging markets through partnerships with domestic financials, rather than through the process of organic growth favoured by its competitors.
In an exclusive interview with Euromoney | Sibos Insider Alain Closier, global head of securities services at Société Générale, and Bruno Prigent, head of investors securities services (taking over Closier’s role on September 30) explained that they feel that the best way for Société Générale to expand its reach in emerging markets is through a process of partnership with established local banks.
Société Générale already operates such a relationship with State Bank of India, an arrangement which it feels is to its benefit in the local market and helps SBI when operating on the international stage.
“It is a win-win situation for both Société Générale and SBI. They have knowledge of the local market, and we understand the needs of international clients,” explains Closier.
According to Closier and Prigent the partner relationship allows Société Générale a greater insight into the operation of the local market, and removes a great deal of the pain traditionally involved with moving into a new market.
“Local markets tend to work with customers in a specific way, and partnership helps with that,” says Closier.
Société Générale believes that a larger presence in emerging markets will benefit clients both on the local and international level, giving each access to markets that may otherwise be unavailable.
“These local markets are growing, and international clients want access to them – we can provide these clients with that access. Conversely, the biggest players in these markets are looking for access at an international level,” according to Prigent.
This move towards partnership can be seen in Société Générale’s announcement today that it will act as sub-custodian for Deutsche Bank in Egypt. The bank views Egypt as a strong location for expansion and that while it may look unattractive due to recent political strife, the situation should improve in the long term.
“Egypt may not be the perfect example, but it should be strong in the future. I am convinced that we will profit in the longer term,” says Closier.
Closier and Prigent see Eastern Europe, the Middle East and South Africa as prime targets for the expansion of their global markets presence.
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