Expanding into new jurisdictions can be a challenge for small investors looking to invest beyond their borders. Brenda Bol, director of Cecabank's branch in Luxembourg, explains how Cecabank helps these customers in an interview for Duke at 360Crossmedia.
Could you explain what Cecabank does?
Cecabank is the leading Spanish bank in the field of depositary and custody services, with more than €350 billion in assets under custody and more than €255 billion in assets under deposit. We recently decided to open a branch in Luxembourg to expand and improve our operations. Last April, we initiated the process to open this branch, and within four or five months we obtained the bank licence. Nine months after initiating this process, we have received our depositary bank licence. As a Spanish bank subject to European regulations, our depositary services are very similar to those available in Luxembourg, so it has been easy to introduce the same activity that we have been providing for more than ten years in Spain.
Why go to Luxembourg?
This expansion has been due to our customers with fund businesses in Spain with an interest in exploring what Luxembourg offers, especially in alternative investments. Our Luxembourg branch aims to offer a smooth experience that supports our customers' growth strategies. Many are relatively small or medium-sized investors, working with an initial structure of between ten and one hundred million euros. We believe in our customers and their business strategy, and we want to support them. Our own strategy is to focus on small and medium-sized customers and help them grow their business in Luxembourg.
'We believe in our customers and their strategy, which is why we help them grow.'
What is your vision of Cecabank in Luxembourg for the coming years?
For small investors, starting in Luxembourg can be difficult. The barriers to entry are increasingly higher and even large companies face a growing number of obligations and costs. We plan to continue to counter this trend, working with medium-sized customers, keeping the market open for entrepreneurs. We have a three-year plan to start with Cecabank's current customers in Spain first. We will establish ourselves with existing customers who already have structures in Luxembourg or are prepared to launch new structures there, but we will also open ourselves to the rest of the market. And while we don't only serve customers from Spain, speaking Spanish and having our operations in Madrid makes us a useful option for Spanish-speaking customers looking to overcome the challenges of a new country. Our niche is to accompany customers in their growth, not only in traditional sectors, but also in the field of alternative funds. Alternative investments have experienced a boom in Luxembourg in the last five to seven years, and this opportunity is largely the reason why we are here.
