–> This is a pre-event interview in the run-up to the Leaders in Finance Wealth Event on March 7, 2024.
Jeroen Broekema: Thanks for taking the time, Job Mantz Country Manager at MeDirect Netherlands, for talking to Leaders in Finance in the run-up to the Leaders in Finance Wealth event 2024. First of all, could you introduce yourself?
Job Mantz: As mentioned, I am Country Manager at MeDirect Netherlands. MeDirect is a small bank that originated from Malta. We have subsidiaries in Malta, Belgium and in the Netherlands.
Professionally, I love to talk about WealthTech, financial planning and digital marketing. Conversion rate optimization was my speciality when I started my professional life, and this grew into generic optimization and general management. This skill helps me te always look at optimizing business opportunities. Additionally, I find great joy in engaging in discussions about banking in a general context.
Beyond the financial domain, I try to balance my work as a country manager with family duties. I call Driebergen my home and I am a proud father of two boys. My wife is a scientist, so she is adding the intellectual flair in the household. Besides this, I love to do sports; playing rugby, coaching the young rugby team and doing CrossFit. I also do some video gaming, painting and I enjoy walking in the forests that are surrounding the place where I live.
Jeroen Broekema: Thank you for the introduction. To clarify for those unfamiliar with MeDirect, what precisely is your scope of operations? Would you categorize yourselves as a bank, a tech company, or perhaps a blend of both? Or is it something entirely different from what I am suggesting?
Job Mantz: We label ourselves as a WealthTech company. However, when you delve into the regulatory landscape, we are officially a bank—fully regulated by the MFSA in Malta and the NBB in Belgium. Additionally, given our status as a systemic bank, the ECB oversees our operations. The reason why we are calling ourselves a WealthTech company, is that we stand out by not solely focusing on typical banking solutions, unlike many Dutch banks. Our emphasis lies in exploring the nooks and crannies between products through technology. We want to be holistic in our approach to the customers. This not just involves implementing individual products and solutions, but ensuring they work together seamlessly to deliver the optimal solution for our customers.
Jeroen Broekema: What would you usually say characterizes a MeDirect customer here in the Netherlands?
Job Mantz: We started out just a couple of months ago, so pinpointing the exact profile of a MeDirect customer in the Netherlands is a bit challenging at this early stage. However, broadening the scope to our branches in Malta and Belgium, our typical customers tend to be more affluent individuals. They are the ones who have outgrown standard retail banking solutions, but are too small to step into full-fledged private banking solutions. Essentially, they fall into the gap where they require specific wealth products that traditional banks might not readily offer. I can see a similar trend in the Netherlands, and I am pleasantly surprised with the type of customers we are attracting; these are the individuals we are looking for. But as I mentioned, it is still early days for us.
Jeroen Broekema: How would you define wealth management in your context? And to add, what are the largest challenges for the industry in general?
Job Mantz: From my perspective, wealth management extends beyond the realm of specific products. While many might define it as someone overseeing and managing your wealth, typically through asset or portfolio management solutions (known as “vermogensbeheer” in Dutch), I believe we should broaden this definition.
It is fundamentally about managing someone’s wealth, and this does not necessarily tie to a specific product. The broader question is: how do we manage wealth? Whether it is through execution only, discretionary portfolio management (DPM), or advisory services – essentially, it’s about finding the approach that aligns with the customer’s preferences.
Talking about challenges in wealth management, the industry is currently grappling with a set of existential challenges that surpass those of any previous era. Key areas include digital transformation, shifting investor expectations, industry consolidation, and the increasing retailization of wealth management.
These challenges are gaining ground against the backdrop of social, economic, and geopolitical disruption. The three most significant challenges that keep leaders of wealth management firms awake are commoditization, fee compression, and competition, particularly from digital wealth tech companies and challengers. This competition poses a clash with traditional banks, which approach wealth management from a more traditional perspective with advisors, without fully integrating their products and services. In the past, wealth managers served as the human link, knitting everything together. However, younger generations prefer digital solutions and traditional wealth management companies do not offer that experience yet.
As for how MeDirect addresses these challenges, we provide a one-stop-shop for all wealth products. Our offerings include not only Discretionary Portfolio Management (DPM) but also execution-only and savings. Thus offering a full suite of wealth solutions that a customer can pick and choose from. We have the solution where we basically help customers in prioritizing the best products for them, a unique approach in the Netherlands.
Jeroen Broekema: Right. So that kind of sounds like you covered the opportunities as well then for wealth management. Or are we missing something here?
Job Mantz: There are still a lot of opportunities, and one area we are actively exploring at MeDirect is data integration. There is a lot of data going on, and to include a buzzword; AI is playing a role in that as well. Bunq recently incorporated AI into their platform, and it is certainly an avenue we are investigating. To combine data and give information to customers that is readable and understandable for them, despite the complexity of data, even for CFA professionals, is a big opportunity for companies like us. Additionally, ESG (Environmental, Social, and Governance) is another area we consider as an opportunity.
Jeroen Broekema: Why is that an opportunity?
Job Mantz: Investing in itself is a way to basically steer the narrative to a certain topic. So if you invest in ESG friendly products, you are steering the topic of ESG in a positive way because you are investing in it.
I think that companies are increasingly recognizing their ESG responsibilities, and legislation helps in this. Most companies today are acutely aware of their unique role in fostering sustainability. However, it is also a difficult situation since we are not always allowed to advise customers in a specific manner. Nonetheless, there’s an opportunity for us to make ESG considerations an integral part of any investment strategy without unduly influencing the customer. We all play a part in the environment, and making a positive impact is crucial. While legislation, customer expectations, and regulations may pose challenges, they also present opportunities for us to contribute positively.
Jeroen Broekema: You have already described your company as WealthTech. To what extent are you ahead of the mainstream banks in terms of tech? In essence, how crucial is technology in this specific subsector of the financial industry?
Job Mantz: I would not say it is a subsector of the financial industry. Rather, I see it as the next evolution of banks in general. In the past, you could say it was the next evolution of fintech, but I prefer to broaden that perspective. It is the next evolution in banking. The initial phase of digitization for banks focused on streamlining processes and making services more accessible through digital platforms. This way it was not needed anymore to see a bank officer, because you could use your mobile app. While some still prefer face-to-face interactions, this first phase of the transformation focused on not having to use the bank officer, using your app instead.
The next step in the banking evolution would be, with Wealthtech being a very important part of that, to integrate the existing digital solutions into a service model. Wealthtech essentially functions as the service model that is bringing various products together, offering customers an experience with the bank rather than just a product. This is the crucial difference when comparing Wealthtech to the banking solutions we have at the moment.
Jeroen Broekema: It makes sense to me. For my final question, considering your partnership with Leaders in Finance for the event on the 7th of March, what are you typically looking for or looking forward to when attending such events?
Job Mantz: Well, I have two goals within this event. Firstly, I aim to engage with as many people as possible, it gives great networking opportunities. I enjoy speaking with people in our industry to test my assumptions; engage in meaningful discussions about the future of wealth management and wealth in general. Meeting industry leaders, exchanging perspectives and getting the pulse of the latest trends is part of this goal.
Secondly, I am looking forward to getting inspired. For example, I look forward to the panel on alternative investments. Discussions on this topic always give me valuable insights and energy. Exploring alternatives where we can add value to our customers. I’m looking forward to experiencing these inspiring moments during the event.
Jeroen Broekema: That is great. Thank you Job, for joining this short pre-event interview with Leaders in Finance. I am very much looking forward to have you on the panel Wealthtech on the 7th of March 2024. Thank you so much.
Job Mantz: Thank you.
–> This is a pre-event interview in the run-up to the Leaders in Finance Wealth Event on March 7, 2024.