Structured products in 2024: the big shift?

BNP Paribas hosts first European structured products conference 2024


The first structured products conference organised by BNP Paribas, which took place at Les Pavillons des Etangs in Paris, gathered around 100 distributors and wealth managers from all major European markets. This Industry Leaders Forum, ‘Structured Products in 2024: The Big Shift?’, provided a day of insightful panelist discussions, interactive workshops on topical thematics and round table sessions debating how structured products best fit clients’ portfolios in the current macroeconomic environment. 

Presentations covered issues that will affect markets in 2024 and beyond, including how AI is being used, the latest ESG trends, as well as a snapshot of European structured products. A look back at the history of structured products highlighted the long-term cycles of product innovations.  

History of structured products

Structured products emerged in the early 1990s and the evolution of these products has been significantly influenced by fluctuations in interest rates and volatility. As market conditions changed, structured products adapted to offer investors the most effective market access strategies, hedging strategies and attractive returns.

BNP Paribas has played a pivotal role in the consolidation of the structured products industry, when many competitors have retreated from the challenging landscape of hedging activities, and it has remained committed to providing innovative solutions for clients.

The current low interest rate environment has proven to be particularly conducive to the growth of structured products. The combination of capital protection, enhanced returns, and customisation options has fuelled demand for these products, leading to a significant increase in volumes in recent years.

Innovation in structured products

The innovative strides being made in the field of structured products were highlighted. A key area of focus has been the integration of technology in the development of structured payoffs. By harnessing the power of advanced algorithms and data analytics, more sophisticated and tailored solutions are being created. This has been particularly evident in the fields of credit and rates, where BNP Paribas’ investments in financial research and technology have enabled the creation of a new generation of structured payoffs and more dynamic and responsive products.

Another area of innovation has been in the use of Quantitative Investment Strategies (QIS) and Active Management Certificates (AMC) where a new service to investors was showcased.

Artificial Intelligence

Artificial Intelligence (AI) is increasingly being adopted in the capital markets and structured products sector, transforming the way businesses operate. The practical implementation of AI was outlined, revealing its numerous benefits.

BNP Paribas has been investing in AI since 2016 and now has a dedicated team of 35 data scientists working on various AI projects. It has integrated AI in various areas of its structured products business, including task automation, productivity enhancements, and forecasting capabilities.

Our first pan-European event for distributors and wealth managers marked a significant milestone in our commitment to fostering innovation and collaboration in the structured products space. We are proud to have facilitated this gathering to provide a unique opportunity to meet and share ideas with peers from across Europe, creating a vibrant forum for brainstorming the structured products offerings of tomorrow and to strategically plan for the future.

Nicolas Marque, Head of Global Equities, BNP Paribas Global Markets