Amsterdam-based investment firm Van Lanschot Kempen is keen to expand its market share in Belgium, enhancing its position as a ‘top of mind’ private bank in the western European wealth management market with a firmer anchor in the low countries.
This strategy was highlighted during the bank’s capital markets day on Thursday, where the management tabled projections showing that for Van Lanschot Kempen, the Belgian private banking market could surpass its Dutch home market, where it manages some 37 billion euro in assets.
“Our ambition is to be a leading wealth manager in Western Europe, with a strong base in Belgium and the Netherlands,” said the bank’s board chairman Maarten Edixhoven. “Belgium is also our home market for private banking. What I am saying is that Belgium might even be our first home market, with the Netherlands as the second.”
“Very nice to hear,” Mercier Van Lanschot CEO Thomas Vanderlinden responded during the bank’s investor day in Amsterdam.
Mercier Van Lanschot, the firm’s Belgian unit, currently manages 13.1 billion euro in assets in Belgium, according to first-quarter 2024 figures, with 0.7 billion euro stemming from the 2023 acquisition of Accuro. The firm’s compound annual growth rate since 2019 stands at 13 percent.
Transition year
CEO Vanderlinden noted that the merger of Van Lanschot Belgium and Mercier Vanderlinden in 2021 has significantly accelerated growth. Reflecting on 2023, he described it as a «transition year» marked by the expedited acquisition of the remaining 30 percent of Mercier Vanderlinden shares by Van Lanschot Kempen.
«We have worked diligently to integrate the two companies, a challenging endeavour that has already begun to pay off. We are confident in our ambition to be Belgium’s leading private bank, exemplified by the opening of nine new accounts daily,» Vanderlinden said.
He also observed that while the Belgian private banking market is akin to the Dutch market, it is notably larger. «We are expanding in Belgium and aiming for greater market share. Approximately half of Belgian companies are expected to be sold in the near future, which presents a significant opportunity for us,» he said.
Focus on southern Belgium
The board chairman underscored that attracting «new money» is more straightforward during financial milestones such as dividends or sales, rather than convincing clients to switch banks. «Belgians are among the most loyal customers globally, a considerable advantage for us,» Edixhoven added.
To maintain top-of-mind status in Belgium, Vanderlinden emphasised the importance of simplicity in services. He also highlighted the bank’s growth strategy, particularly in southern Belgium. «Penetrating this market is challenging for Dutch-speaking bankers. However, my partners and I have undergone bilingual training and established a presence in southern Belgium since 2018. We understand the culture and speak the language, which positions us well for growth,» Vanderlinden explained.
Another growth catalyst lies with existing clients. Previously, clients would transfer 10 to 15 percent of their assets to the private bank, but now transfers often amount to 50 percent or even 100 percent of their assets.
This article originally appeared on InvestmentOfficer.be.