Banking on the future
The financial sector is still recovering from the economic crisis. But the Amsterdam Metropolitan Area is already seizing the opportunity to consolidate its central position in global money management.
Conservative approach proves beneficial
“Obviously the economic decline has impacted financial institutions in the Amsterdam Area,” says Akkie Lansberg, managing director of the Holland Financial Centre (HFC). “That’s simply inescapable in an open economy and in a sector marked by strong international orientation.”
She believes that the crisis will ultimately benefit Amsterdam as a financial centre, although it was sometimes regarded in the past as reliable but unexciting, “Our conservative attitudes are now proving a moral and physical advantage,” she says.
Making financial history
Amsterdam has a unique financial history. Equity trading was invented here in the 17th century. The Bank of Amsterdam served as a blueprint for today’s central banks. Financial innovation has continued in more recent times, with the launch of European emissions trading in the city.
But globalisation and liberalisation changed the financial landscape. The new, high-volume mentality meant that Amsterdam lost ground to London, New York and Frankfurt. Meanwhile, newcomers like Dublin and Luxembourg made inroads into niche markets.
“Part of the problem was that we had become too complacent over the years,” Lansberg says. “We didn’t anticipate the effects of changes in trading until it was too late.” But the financial crisis offers a chance for the Amsterdam Metropolitan Area to regain its lead, especially by offering added value in the form of skills and expertise.
The Holland Financial Centre, a think tank and strategic business development organisation, has been founded to help achieve this goal. It lobbies on behalf of the financial sector, and shares responsibility for developing new policy targets.
Pension fund expertise
One of the areas where Amsterdam can excel is pension fund management services. The Netherlands has a healthy pension capital balance, currently some €600 bn. An entire sector of pension fund management expertise has grown up around it, which the country is now keen to export.
“Global demand for these products is set to rise over the coming years, due to ageing populations,” explains Dirk Schoenmaker, a finance professor at Amsterdam University. European pension laws now allow multinational companies (with funds in several countries) to choose a single pension management location. The Netherlands, with its pension funds expertise, can benefit from this.
Other growth markets of the future are financial logistics and sustainable financing. The Netherlands already has considerable expertise in both. Meanwhile, underpinning the region’s goals is the new Duisenberg School of Finance. “It’s an English-language school for the future leaders of finance,” Dirk Schoenmaker (its dean) explains. And clearly, Amsterdam Metropolitan Area will be taking a leading financial role itself.
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