On Thursday, Keytrade Bank Luxembourg organised a press event at Mosconi Italian restaurant in Luxembourg-Grund to address various topical economic issues that have a relevance for investors, in relation to their online trading platform.
As well as representatives present from Keytrade, Dominique Andro, the Directeur général adjoint of the Groupe Crédit Mutuel Arkea, a new shareholder in Keytrade was also present at the event.
While the European economy is still lethargic, that in the US is growing, with encouraging signs from the Far East also. In Europe, however, the productivity in Spain is still below that of other European countries.
On the issue of Brexit, the morale and sentiment of investors has taken a knock. Regarding the UK, its economy has been strong but is already taking a hit because of uncertainty in the financial markets. However, Brexit and investing in the UK is not necessarily the main concern of investors; the main risk is now China, with a devaluation of the Renmimbi on the cards.
Regarding Japan, industrial output is increasing but its strategy to emerge from its economic downturn does not seem to be in place, which is a concern for investors.
Importantly, 10 July will see the Japanese elections, with the incmbent PM Abe expected to be returned to power. Overall, budgetary, monetary and political policies needs to be clarified (by the central bank) for investors to have greater belief in this economy; this concerns both public and private investors. The Brexit impact is expected to be limited despite the short-term uncertainty.
The issue of oil production is also one that is of specific concern to investors at present. Prices have fallen, production has fallen and demand will fall as renewable / sustainable energy solutions start to become mainstream.
The issues of populist politics were also disucssed, including the personalities of Donald Trump in the US and Marie Le Pen in France.
Keytrade and Arkea
Keytrade, the online bank, has set itself an ambitious goal by aiming for 500,000 clients. One step in achieving this ambitious target was the recent share transfer on 6 June from Crelan to Crédit Mutuel Arkéa, a shareholder that shares its strategy and vision and offers advantages of economies of scale and the support it needs to grow its business. Keytrade Bank will pursue this mission within the structure of Crédit Mutuel Arkéa in order to meet growing consumer demand.
The success story of Keytrade Bank has not gone unnoticed in the world of finance. The worldwide interest in this company and the large number of candidates which have made it a takeover target prove that Keytrade Bank is a strong brand. With the transfer of shares to Crédit Mutuel Arkéa, the bank has gained the foothold it needs for further expansion.
Keytrade aspires to becoming a real alternative to existing retail banks. For Crédit Mutuel Arkéa, this acquisition is a perfect fit within its strategic Arkéa 2020 project, "to become a leader in the field of online banking in Europe by supporting local brands".
With the acquisition of Keytrade Bank, a new key player has emerged in the European online banking sector. In total, this new group boasts no less than 600,000 clients in four countries (France, Belgium, Luxembourg and Switzerland) and manages assets worth €20 billion.
Importantly, the Crédit Mutuel Arkéa has the same credit rating as traditional retail banks such as BGL, BIL and the BCEE. One interesting point was raised during the interactive session: will Arkea remain a Mutuel in 2020 if it achieves it targets?
Keytrade Bank has been operating in Luxembourg for 17 years and is a subsidiary of Keytrade in Belgium.
Photo by Geoff Thompson
