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A great opportunity for Swiss banking in Spain - an interview with Iván Basa
Article published in Citywire, 15 November 2023
Iván Basa, Managing Director of Lombard Odier in Spain, highlights the focus on talent acquisition and his growth plans for the Spanish market.
Two discreet paintings decorate the corridors of Lombard Odier's offices in Madrid. One simply outlines the genealogical tree of the Swiss Private Bank, one of the oldest in the country. The other is a simple framed letter revealing the close relationship between the firm and Henri Dunant, the philanthropist who founded the Red Cross after aiding the wounded soldiers during the bloody Battle of Solferino. These pieces of history lead to a room where a rainy day is hinted at through the half-closed blinds. Iván Basa, the Bank’s Managing Director in Spain, enters the room, sits in front of an abstract diptych with vermilion tones, and defines Lombard Odier’s philosophy: “It is a family business; a historical and traditional bank, but also very much geared towards innovation, with an absolute commitment to Spain.”
Read also: Iván Basa appointed new Managing Director of Lombard Odier in Spain
Basa took the helm of Lombard Odier in Spain just over a year ago, replacing José Couret, who had led the firm’s expansion in the market nearly from its inception, before he decided to pass the baton. In his free time, Basa tries to pass his passion for golf on to his children. “It is an incredibly instructive sport. You are surrounded by trees and fighting against yourself. You have to know how to control your feelings and be respectful towards your opponent,” he explains. However, at work, the battle is against a set of competitors striving to attract clients and lure bankers to their ranks. Since assuming his position, he has intensified his efforts to ensure the acquisition and retention of the best professionals.
After his first months Local Managing Director of Lombard Odier in Spain, Basa acknowledges that his work will continue along the lines of his predecessors, but he is also clear about his focus: talent acquisition. “We have doubled the number of bankers we had a year ago. However, we aim to recruit highly skilled professionals, usually with 15 or 20 years of experience, and if we do not find a profile that meets our standards, we do not make exceptions. Moreover, the team must be well-acquainted with the candidate or have a very good reference from someone close,” he says. Perhaps for this reason, the vigorous recruitment campaign that the entity has undertaken in 2023 has been directed primarily towards one bank: Credit Suisse. Basa has found a wealth of professionals eager to join Lombard Odier. In total, Lombard Odier has 11 bankers – and three agents – in Spain and expects to reach twenty in the coming years.
Professionals from the Madrid office serve High-Net-Worth clients and offer three management models: Execution only, Advisory, and Discretionary portfolio management – the latter accounting for 80% of their volume
The intention behind the hiring activities is to offer a high level of dedication to a limited number of clients, currently about 40 per banker. Lombard Odier does not provide specific figures on their assets in Spain but does reveal that the Madrid office is one of the most important in Europe and has achieved double-digit growth in an extremely competitive environment where international banking groups coexist with domestic entities that have chosen to boost their large fortunes divisions. In this scenario, Basa is clear about the added value offered by the branch he leads: “Spanish banks are doing a great job in private banking, but the reality is that, from my point of view, clients prefer to have an international firm for a global view of their investments. Being one of the oldest banks in Switzerland with an office in Madrid frankly makes a difference.”
There is a significant market share among domestic entities, and global investment firms like Lombard Odier have a lot to say
Basa’s strategy is complemented by a strong interest in technology, which translates, among other things, into a tool dedicated to large fortunes, contributing to the firm’s strategy to attract ultra-high-net-worth clients. “The tool helps us understand, on the one hand, the client’s and their family’s needs in the next decade and, on the other, their expectations. With this, we can work on the necessary returns and decide whether it is viable to make a very long-term wealth plan and, based on this, we allocate investments,” he explains. Its history, philosophy, and tailored services make Lombard Odier one of the Swiss private banks with the most developed presence in Spain. Even more so following the upheaval of the Swiss financial sector last year and altered the ecosystem. On the one hand, the sale of UBS's private banking business to Singular Bank, and on the other, the collapse of Credit Suisse, an entity that Basa is familiar with. The confluence of events has created a perfect storm, generating opportunities for those who are alert.
“The reality is that a growth opportunity opened up for the rest of the Swiss banks with a presence in Spain. But not only due to competition among international companies, but because there is still much market share in domestic entities, and I believe global investment firms like Lombard Odier, which are squarely committed to Spain, have a lot to say,” he states. Additionally, Basa sees room for growth in the Private Equity area: “There is much room to grow. The average client's investment quotas are very low, and we have a division with a sensational track record.”
The conversation is coming to an end, but before turning off the recorder, we look to the future with one last question: how do you envision Lombard Odier in Spain in five years? If we had this interview again in five years, what would you like to tell me?
“I would like to tell you that we have become one of the benchmark private banks in Spain. We want to grow our number of clients. We will seek to double the number of bankers and for Lombard Odier to be a well-known entity outside of Madrid and Catalonia as well.”
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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