Private banks Goldman Sachs and Barclays open offices in Paris

Several international private banks, attracted by the French market with its wealthy clientele, are bolstering their business in France by setting up teams. After US bank Goldman Sachs in early 2021, it will soon be the turn of British bank Barclays to set up in Paris.

International private banks conquer France

At the beginning of 2021, US private bank Goldman Sachs opened offices in Paris and set up a team of 15 people, including 6 bankers.

According to Les Echos, the British bank Barclays is poised to do the same in the coming months, and is currently in talks with financial regulators while putting the finishing touches to its teams.

Barclays ' decision to set up in Paris was prompted by the Brexit, which put an end to the European banking passport. British banks can no longer offer their services on the continent, unless they have set up a legal entity there to qualify for a banking license.

Goldman Sachs is officially based in Frankfurt, but has repatriated its alternative equity trading platform from England to Paris, where it has also based its teams.

Wealthy customers as the main target

International private banks, such as Goldman Sachs and Barclays, are attracted by France's economic dynamism, and target wealthy clients with assets of around €50 million.

At Goldman Sachs, the entry fee is set at 10 million euros, and the bank, which manages over $100 billion of third-party assets in Europe out of a global total of $1,000 billion, had already set up a first office in France in the late 2000s.

After having set up a partnership with BNP Paribas and its Securities Services branch, it finally preferred to use depository centers in London, Zurich and New York, and then regrouped all its European teams in London.

Goldman Sachs aims to increase its European market share from the current 1% to 2% over the next few years. Goldman Sachs has a 6% market share in the US, and topped the French M&A rankings in 2020.

For both Goldman Sachs and Barclays, having offices in Paris helps to establish their credibility with French customers.