BNP Paribas Creates New Fund to Invest in Financial Services Startups

BNP Paribas has officially launched a new investment fund with the purpose of locating and investing in technology startups that are creating innovative solutions in the financial services and insurance industries.

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The new fund will be managed by BNP Paribas Capital Partners, which falls under the operational capacity of the banking group’s asset management division.

The fund aims to work in tandem with entrepreneurs and investors to achieve successful results in the development of new innovations and products that can enhance the functionality of the financial processes.

BNP Paribas has indicated that the fund will also focus on investing through venture capital firms, in the event that their agenda for technological development matches that of the banking group, with respect to the type of technology as well as its geographical market implementation.

According to the company’s statement in the matter, the underlying types of technology solutions that are of interest to BNP Paribas, include cyber security, Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, AI, and data.

BNP Paribas Group Deputy COO and Head of International Financial Services, Jacques d'Estais, commented on the banking group’s new venture: “At BNP Paribas, we’re firmly convinced that Open Innovation is a powerful driver for the transformation that will help to build the bank of tomorrow and enable us to continue to provide our clients with high value-added products and services.”

Push for Enhanced Technological Capabilities

BNP Paribas continues to promote technological development throughout its various internal units. The group’s asset management division recently conducted a blockchain test, aimed at reducing transaction times, and improving the overall execution and functionality of their systems.

Moreover, BNP Paribas is also reaching agreements with other companies, in an effort to enhance its technology capabilities. In November of last year, the bank agreed to collaborate with global electronic Market Maker Global Trading Systems. BNP Paribas entered the agreement, with the intention of facilitating deeper Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, tighter spreads and further improved pricing, across the US Treasuries secondary market.