ESIConnect: the key to the link between Investment Services Company (ESIs) and their clients

Following an in-depth analysis of the sector, and aware of the added value we could provide as part of this new type of relationship between clients and investment service providers, Global Securities Services decided to launch ESIConnect in 2019.

The initial premise was to provide Investment Services Companies (ESIs) with state-of-the-art technological tools that allow them to offer advice and manage clients investments, while at the same time, capturing clients to provide them with execution and custody services, our core revenue base as part of this model.

To this end, we developed in BBVA Empresas an ad-hoc platform for securities portfolios and fund services to provide coverage to ESIs and their clients. At the same time, an organisational structure was rolled out to cover the entire value chain and banking needs of end clients.

Through the platform, Investment Services Companies can fully track both their clients positions at BBVA and the entire asset execution process. They also have access to a fund search engine, with vehicles from both BBVA AM and third-party managers, as well as files and information on other products that help them in the advisory and portfolio management process.

ESI Connect is a state-of-the-art technological tool that allows ESIs to carry out their advisory and investment services to clients, and at the same time, engage clients to provide them with execution and custody services.

Clients advised and/or managed by the Investment Services Companies also have access to all the consultation tools available on BBVA's website, meaning they can access information on their positions under this model at all times.

This establishes a trilateral relationship between BBVA, the Investment Services Company and the end client, who is a consumer of the management or advisory services of the external advisor as well as of BBVA's transactional and financial services.

This new service has boosted the bank's presence in a sector that has experienced exponential growth in recent years on account of the high demand from clients who need management and advice alternatives based on open architecture solutions.

As a result, we have signed collaboration agreements with 19 Investment Services companies, including SGIIC, AV, SV and EAF. Within the context of this model, BBVA provides custody and execution services to more than 2,200 clients with assets of around €1 billion.

In short, behind ESIConnect, the Investment Services Companies will find a group of professionals who are experts in the custody and settlement of transactions in financial instruments for institutional clients, as well as a group of managers who will provide personalised attention to their clients in terms of the range of banking services and digital solutions offered by BBVA.