Alpha Group, Fund Service Providers & AlphaPay

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That makes perfect sense. Before we discuss Alpha, it seems the financial industry has changed significantly over the last 10 years or so, especially since the financial crisis. From your perspective, how has the way service providers function with clients, such as family offices, changed? What are the current priorities in terms of service?

The perception of the banking industry has turned negative, with bankers often seen as the "bad guys" in these scenarios. This has led to numerous regulatory fines for many institutions, causing banks to tighten their risk appetite. As banks are punished for engaging in potentially risky work, they become less likely to take on such tasks, narrowing their focus. This has had a domino effect on other areas of the industry, leading to unintended consequences, which could potentially segue into our conversation on Alpha.

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That makes sense and ties into why Alpha was founded just after the financial crisis when regulations increased. Regarding your relationship with Alpha, how did you learn about them and reach a point where you were willing to recommend them to clients?

The main selling point that led to us doing business with them was their work with Luxembourg funds and illiquid alternative funds. When setting up these funds, you need a GP, which is a corporate entity, and a partnership, typically an SCSP in Luxembourg. To establish a GP in Luxembourg, you need a notary and a bank account in existence before notarization. This requirement is unique to Luxembourg, as it is not needed in places like Jersey or the UK.

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That makes sense and ties into why Alpha was founded just after the financial crisis when regulations increased. Regarding your relationship with Alpha, how did you learn about them and reach a point where you were willing to recommend them to clients?

Luxembourg's partnership law is more recognizable to UK and US clients compared to Ireland. Therefore, it became crucial for fund managers to open bank accounts quickly and establish their entities. Traditional banks, however, were becoming less interested in providing basic banking services, as they were not significant revenue generators. Instead, they preferred to offer ancillary services like depository services, FX services, fund finance, and credit line finance. If it's just bank accounts, they are not interested. If it is just bank accounts for a fund manager they haven't heard of, they've got almost zero interest. Additionally, it was challenging for banks to retain employees in onboarding roles, leading to a slow and cumbersome onboarding process. Clients were becoming frustrated with the lengthy waiting times - maybe two or three months - to open bank accounts.

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