The value, importance on the market and the social role of investment consultancy require banks that manage Italians’ savings to develop robust brands to consolidate the pact of trust with all the country’s stakeholders.

The reputation and credibility of financial consultancy networks also pass through the knowledge and image of their brand, helping to enhance the profession of financial consultant, expand the number of clients served and attract professionals from the banking world, as well as young talents.

How much does the importance of the brand of Financial Advisory Networks attract established professionals today? A lot, considering the estimates of the research conducted by Assoreti with Finer. Of over 500 bankers interviewed in the analysis, 34% declared themselves willing to consider a career as a Financial Advisor. Of those considering this step, 38% are men and 29% women who currently work as private bankers and bank managers. These are mainly professionals aged between 30 and 40 (38%), followed by more senior profiles up to 50 years of age (35%), in both cases, more than half (52%) already have a client portfolio and comes from large (44%) or medium (32%) banking entities. The influx of new talents interested in entering the industry comes mainly from Northern Italy (43%) – in line with the greater concentration of large groups – but also from the South (34%), which exceeds the Centre by almost 15%. . What drives them to join a network bank? 67% of the sample considers the stability and solidity of the institution a fundamental prerequisite for evaluating a change, followed by the centrality of the consultant (64%) and corporate image factors such as the competence of the management at the head of the structure (62%). In general, if the factors linked to the company image influence the choice for 24%, 28% consider those linked to “human capital”. The attention paid to employees (47%), customers (44%) and investments in continuous training and updating of professionals (40%) are considered priority elements. Attention also remains at the centre of the products and services component offered (23%), with 49% considering a superior offer on the market and a wealth service as well as financial consultancy to be important.

“The analysis provides a very interesting picture if compared with the opinion of those who already operate in the Networks. The factors that influence the choice of entry of external professionals, and therefore the attractiveness of the system, correspond in fact to the satisfaction reasons expressed by those who already work in the sector. This expectation therefore reflects a real context in the working environment of the Networks. This makes clear the correct representation that the Networks are introducing not only towards Italian families, but also towards the first customers, employees and professionals. they operate at the service of the country’s savings”, states Marco Tofanelli, Assoreti General Secretary.

“According to the survey, compared to traditional banks, network banks reflect distinctive elements of great importance: competent and capable management, the centrality of the Financial Advisor, the ability to offer asset consultancy to families and businesses. Despite the work still in potential expansion, the value of the brand and the ability to communicate it have now become an important pillar in the positioning of the industry towards all stakeholders, results also in terms of attractiveness of the profession provide an image in line with the positioning perceived on the market. the result of a commitment also initiated in terms of greater external communication of its distinctive values”, declared Nicola Ronchetti, CEO of Finer.

L'articolo FINANCIAL CONSULTANCY: A THIRD OF THE BANKERS ARE THINKING ABOUT CHANGING CAREERS proviene da Finer.

Why do more and more Italians decide to rely on the Networks to invest their savings? 88% today consider the “solidity and reliability” of the system an indispensable condition. This data underlines the importance that savers attach to the safety of their investment choices. Reputation and image are just one of the 5 factors that over a thousand Italian investors (mass market, affluent and private) have highlighted in the research “The value of the brand of Financial Advisory networks” produced by Finer for Assoreti, the Association of the Investment Advisory Companies and presented on the occasion of the Salone del Risparmio. Of the 5 factors mentioned, corporate image takes on an important weight for 24% of savers, preceded by one percentage point by “human capital” which remains on the podium (25%), and followed by attention to “products and services” offered (22%), “communication and propensity for innovation” (20%) and “social commitment” in the ESG context (9%). The human factor continues to be the distinctive feature of Reti banks due to the centrality of the person, which is enhanced for 79% of savers by the skills of the financial advisor and for 72% by the attention paid to the customer but also by the image and competence of the structure’s management (59%). Reputation characterizes the level of satisfaction with the brand image at 69%. The offer provided by the Networks is rewarded for 85% of investors by the asset, as well as financial, vision of the service which is appreciated in 49% of cases also thanks to the ability to be able to provide it in an increasingly multi-channel perspective. A figure that emerges of particular interest is the attention that investors pay to the financing and mortgage service (34%). The theme of communication and innovation today sees the capitalization of an effort by the Networks in terms of local initiatives, communication campaigns as well as recent cases of rebranding considered essential by savers and particularly recognized for transparency (63%), but also for an increasingly modern (62%) and innovation-oriented (61%) positioning.

In this context, there is also a growing sensitivity to social impact activities that the financial consultancy service is now able to offer both through support for the protection of family projects (37%) and growth opportunities for young people (33%) but also to the impact on the real economy generated by investing in support of businesses (23%). The combination of the human factor and innovation strengthens the attractiveness of the sector which at the end of last year saw the market share of the Networks system, defined with respect to the entire managed savings sector, standing at 25.3%.

38% of investors consider the direct relationship with financial advisors an essential factor to guarantee the continuity of the relationship and listening but, at the same time, also recognize the importance (39%) that the use of digital tools can play today as added value in synergy with the presence of a professional.

“The Networks are now also technological platforms, available to financial advisors, i.e. those who maintain a direct and personal relationship with the client. The success of the Networks lies precisely in the synthesis of this combination. An image that translates into the technology of a “Formula 1”, i.e. new digital services, available to the “pilot”, the financial advisor, who guides the industry in relations with investors. And today this is also an element of attraction for young people” comments Marco Tofanelli, General Secretary of Assoreti and adds “In Italy the financial consultancy model represents a unicum that investors, as reported by the results, also recognize thanks to a growing work of external communication that the Networks are promoting. This path has therefore seen greater awareness, precisely in the face of the current situation, in entrusting the management of savings and life projects into the hands of professionals who increasingly look at the entire allocation of family assets”.

“The value of the brand and the ability to communicate it is an indispensable asset for further expanding the customer base within the universe of Italian investors” comments Nicola Ronchetti, Finer CEO and author of the study – “The study has put highlights the great potential, partly still unexpressed, of the networks in spreading the value of their service model in general and at the same time the peculiarities of the individual bank networks, fundamental for increasing the level of competition and expanding the customer base”.<

L'articolo WHY ITALIANS CHOOSE CONSULTING NETWORKS FOR THEIR INVESTMENTS proviene da Finer.

Twenty years ago, if we had asked financial advisors how important the value of the brand of the network bank in which they operate was for their work, we probably would not have obtained such a broad consensus.

However, times have changed and the role that financial consultancy has taken on, both in terms of volumes and service offered, also has greater responsibility in terms of image and values ​​transmitted.

According to the research “The value of the brand of Financial Advisory Networks” conducted by Assoreti together with FINER, 71% of financial advisors currently consider the brand of their network bank as an essential “business card” for their daily work.

Out of a sample of 1,000 financial advisors from the main consultancy networks interviewed, it emerged that over 69% recognize the importance of the brand also in the creation of new customers, while 60% link it to the relationship of trust with existing customers. In fact, the brand has also become a fundamental element for strengthening credibility and solidity for professionals in the sector.

For over half of the financial advisors interviewed, the image of the network in which they operate is one of the most effective levers for attracting new professionals (59%) and young talents (55%). This highlights a significant change in the approach to work, where the image of the Network is seen as a representation of the team as a whole, rather than an individual attribute.

In fact, around 70% of consultants consider the credibility and ability of the Network’s management as one of the fundamental properties. But it is not only management that plays a crucial role: the offer of financial and asset consultancy (66%) and the solidity of the bank (61%) for which they operate are also relevant factors.

In evaluating the main characteristics of the Networks, consultants attribute particular importance to “human capital” (29%) and, in particular, to the industry’s investment in continuous training (31%). Attention to employees (41%) and customers (49%) is a further indicator of the crucial role that reputation and human resources management play in attracting and retaining talent.

Corporate image (27%) and aspects related to reputation (57%) follow closely, while the quality of products and services (29%) closes the “podium” of the top qualities recognized by financial consultancy networks.

“It is essential to recognize that today the brand not only acts as a ‘business card’ for consultants, but has become a key element in building trusted relationships with clients and attracting talent to the sector. This underlines the importance for Networks to invest in the management and communication of their brand as well as in offering high quality services, to remain competitive and attractive on the market. The reputation and solidity of the Network are now considered not only indicators of financial stability, but also of reliability and professionalism, crucial factors for building teams of future professionals” commented Marco Tofanelli, Assoreti General Secretary.

“Just as financial strength is crucial to survival in the finance industry, effective brand communication is equally crucial. The brand reflects business ethics, risk management and the ability to provide reliable services to customers. For professionals in the sector, it is clear that a solid reputation of the Network not only offers a more stable and secure working environment, but also more promising career opportunities” commented Nicola Ronchetti, CEO of FINER.

L'articolo FINANCIAL CONSULTING, WHEN THE BRAND MAKES THE DIFFERENCE proviene da Finer.

Financial consultancy is today called upon to carry out a task of great social responsibility on which the future of our country could also depend.

To succeed in this epochal challenge, financial consultancy can make use of some principles that come from two apparently disjoined disciplines: demography and maieutic.

Demography is the study of phenomena that refer to the population and in particular to the analysis of its evolution, maieutic – practiced by Socrates – is the procedure with which the Greek philosopher led his students to achieve knowledge by finding it within themselves.

Demographic projections give an extremely clear picture of our country: in less than thirty years, Italy will have lost a total of 4.5 million residents as a result of the aging population and a consequent decline in births due to the reduction of women in childbearing age (source Censis).

The impact that all this will have on the welfare system will be impressive. Italians don’t seem to worry much about all this, caught up in their daily lives and suffering from a congenital myopia.

To be honest, protection and complementary social security not only do not seem to be on the agenda of Italians but – perhaps more worryingly – not even on that of those who govern them and should support them in their life choices.

And this is where financial consultancy and maieutic come into play. The financial advisor – thanks to the trust he enjoys among his clients – has the unique opportunity to act with three moves.

The first move is to make your customers aware of what will happen in their future, the second is to understand their life plans, the third is to propose solutions to realize them.

The main life projects for Italians are very clear (FINER source): maintaining or improving the current standard of living with an additional income (78%), supporting their children in realizing their projects (71%), having the means to be able to look after parents in case of need (66%).

These desires seem to clash with some ancestral fears made even more acute by the geopolitical situation: fear of the cost of living (60%), inability to manage unexpected events (51%), loss of job (45%).

It is surprising that 83% of Italians declare that they have not had the opportunity to talk about all this with their banking and insurance representative.

An even more difficult task for young people: 40% of Italians aged between 18 and 34 are not interested in building a pension fund and almost a quarter of them declare they are not familiar with the topic (source Bankitalia).

If we put all this data together, a unique opportunity emerges for those who want to make the profession of financial advisor a real mission.

The unique opportunity is to make your customers more aware of what is happening and will happen to them, helping them overcome their fears and realize their life plans.

To do this, we need professionals trained on issues related to protection, supplementary pensions and credit, capable of supporting financial advisors in the arduous task of rousing Italians from their torpor.

We also need an entire industry that becomes more proactive and proactive, capable of intercepting the fears and dreams of Italians, overcoming the former and actively contributing to the realization of the latter.

Nicola Ronchetti

L'articolo CONSULTANCY BETWEEN DEMOGRAPHY AND MAIEUTIC proviene da Finer.

Corriere della Sera Economia | April 2024

Digital services in financial consultancy increasingly attract young people, especially between 25 and 30 years old, so much so that 75% of them now consider them among the main strengths of the Networks. The picture emerges from the analysis “The value of the brand of financial consultancy networks” that Assoreti conducted with FINER on a sample of over 500 recent graduates and young professionals. Among other aspects, looking at financial consultancy, more than half of the young people interviewed (55%) see the offer of insurance and social security services as a central aspect in the choice of investment as well as that of mortgages and loans (22%). The dialogue with the new generation is mainly driven by “word of mouth” dynamics from friends or relatives (71%) and in general by direct contact with the financial advisor (33%) and by the proactivity of the Networks (21%) in communicating to new public of investors but also future professionals. The image reported by the under 30s is that of a networking industry considered at the forefront of innovation (81%), dynamic and modern (79%). Perceptions that are also realized thanks to the commitment to greater external communication activity which represents for 28% of young people one of the main factors in approaching the industry, to which is added the importance of the social impact generated by the Networks (15 %) for the real economy but also the possibility of growth and internal training (49%) that the system is able to offer today. An intergenerational requirement is then the perception of solidity and reliability of the bank (85%). Even for the youngest, the financial advisor represents a point of reference for giving continuity to a life project (27%) and the direct relationship with the professional still remains the added value (42%) even for the youngest which is strengthened with the support of new digital tools considered essential by 88% of the sample in the consultancy provided. An aspect that also represents a factor of choice when starting out as a financial advisor.

Among those considering taking up this profession (41% boys and 20% girls), 45% have just completed their studies in economics but there is also a significant percentage of those who come from a literary background, 38% political science, 36 % law and 33% psychology. Data which also reflects an asset management activity which today defines the solidity of the financial consultancy model in terms of human capital, the ability to manage emotions and the relationship of trust with customers. Why undertake this profession? For many (82%) it reflects a passion for finance, others consider it a rapidly growing market (66%) capable of offering a career path (49%) that is economically solid (79%) and flexible (59%). And once again sustainability emerges in the choice factors of younger people who look at this profession, appreciating (49%) the attention it has been paying to ESG aspects for some time.

“Financial consultancy networks represent one of the success stories in our country, their growth potential also passes through the ability to further enhance their knowledge and their image among the general public of investors and young people” commented Nicola Ronchetti, CEO FINER.

“Today we have more than 2 thousand consultants over 70, with an average portfolio of around 35 million, so we are talking about around 70 billion which will be left to the management of new entries in the coming years. The activity that Assoreti and its associates are carrying out, with an effort also in terms of communication, speaks to the new generation and the data that emerge in recognition of the innovation and credibility of the sector tell us that we are following the correct channels. Investment, also in light of this new openness to young people, both as future investors and as human capital of the profession, is at the center of our activities. Furthermore, the consultant today plays a social role that well represents the sensitivity of young people, and is in fact one of the factors chosen for evaluating a job. It’s not just about transforming savings into investment but about contributing to the development of the country and the kids are starting to understand this” declared Marco Tofanelli, Assoreti General Secretary.

L'articolo FINANCIAL CONSULTANCY: FOR 41% OF UNDER 30S A CAREER CHOICE proviene da Finer.

What will the financial advisor be like in ten years? Predicting the future is always a bit risky, especially in a sector that is experiencing profound changes, such as that of financial consultancy.

Starting from five facts makes this exercise a little simpler, let’s see what they are and what impacts they could have on the future of the profession.

The first, and most important, starting point is that, for two years now the number of financial advisors with an active mandate has not only not increased but has actually decreased.

The theme of the inclusion of new recruits – not necessarily young people with their first experience – concerns many professions, just think of doctors, craftsmen and in general all those professions which as such cannot be improvised but require experience and a medium-long apprenticeship.

Even in the case of financial consultancy, thanks to the reduction in intermediation margins, the concentration process is leading to a smaller number of professionals but with much higher portfolios than in the past, effectively raising a further barrier to entry.

The second fact is that one of the antidotes to the disappearance of the financial advisor profession is to draw on the pool of other professions, for example bankers: tens of thousands of them who work in branches will soon have to find another way of working due to their inexorable closure.

The third fact is that the work of the financial advisor – once a free agent – is transforming into group/team work: protection, supplementary pensions and access to credit are alongside financial planning and require distinct and complementary skills.

The fourth fact is that the acceleration that digital is giving to all professions will not spare that of the financial advisor; the more or less wise use of Artificial Intelligence – the latest arrival – and, in general, the evolution of digital platforms will divide the world into dinosaurs, destined for extinction, and innovators for whom a future will be reserved.

The fifth fact is that, like it or not, sooner or later the current consultant commission system based on product rebates will disappear and not necessarily due to an intervention by the regulator on duty, but because the customers want it that way.

This does not necessarily mean that the consultant of the future will be less remunerated than today, but that he will be remunerated differently, perhaps even better than today, provided however that he is able to demonstrate the value of his consultancy and therefore get paid for it.

If everything goes as planned, in ten years we should have a greater number of professionals (+10%/15% compared to today), with an average age between 55 and 65 years (+5 years on average compared to today), with an average portfolio double that of today, who will work in a team in 80% of cases and who will be paid by fee in 75% of cases.

The financial advisor of 2034 will serve a larger clientele (+50% than the current one) and an even more well-equipped one (private share from 40% to 70%).

Conversely, those who cannot or do not want to use a consultant will use increasingly digital and remote banks or, on the contrary, those few that will be able to maintain a strong territorial presence such as the Post Office.

Nicola Ronchetti

L'articolo THE FINANCIAL ADVISOR OF 2034 proviene da Finer.

Never before has the fundamental and social value of financial consultancy emerged above all for the growth of our country.

In one year, the share of managed savings has increased (today at 59% + 3%) compared to the liquidity in Italians’ current accounts (today at 41% – 3%).

The increase in the share of managed assets in the Italian portfolio is due to the market effect (performance effect of +2.4% according to ASSOGESTIONI) and the subscription of tens of billions of BTPs.

The reduction in liquidity in current accounts has a sad reason: in 12 months, inflation and the increase in rates on loans and mortgages have burned 152 billion of Italian families’ savings (source Centro Studi Unimpresa).

The good news is that thanks to BTPs, the percentage of Italians who financially invest their savings has grown by +2% in the last 12 months.

Managed savings suffered (-50 billion given Assogestioni), but also thanks to BTPs at least the money came out of the liquidity trap of interest-free current accounts.

36% of financial advisors and 49% of bank managers who took an active part in their proposition also contributed to the success of the BTPs.

The success of BTPs takes us back a few decades but has the merit of having awakened Italians to the issue of correct management of their savings.

The figure of the dedicated financial advisor proves to be central to this mission: the satisfaction of their customers is higher than that of non-dedicated bank managers (76% vs. 48%).

The market share of networks has grown in numbers over the last ten years: with a +165% of their customers’ assets compared to a +14% of the market.

The credit goes to trained professionals who know how to listen to their customers but also to an industry that leaves ample room for growth to the best and most enterprising, as demonstrated by three data points among many.

The first: only 17% of customers are able to talk about their life plans with the bank, and these are projects – maintaining their standard of living, supporting their children and parents – which can only be achieved with careful management of the own savings.

The second: 77% of Italians with an average balance of two hundred thousand euros in their current account have not heard from their bank manager for 12 months.

Third: 75% of Italians would be interested in having a single point of contact to manage their savings, insurance coverage and access to credit (mortgages, loans and business financing).

The room for growth is enormous, but only for those who know how to make listening, proactivity and monitoring the three pillars that support Italian families and businesses – protection, savings management and credit – their mantra.

Nicola Ronchetti

L'articolo THE VALUE OF CONSULTANCY proviene da Finer.

77% of Italians do not have a contact person for managing their savings, so much so that they concentrate them on the purchase of properties and liquidity in bank deposits.

The absence of a continuous dialogue with an expert for the management of one’s savings is equivalent to the lack of the possibility of concretely realizing one’s projects.

A third of the wealthiest customers – upper affluent or private – have a regular dialogue with their investment contact person, even, when this is a financial advisor, the percentage exceeds fifty percent.

The financial wealth of Italian families who rely on a CF or a PB grows on average more than those who do not use a professional.

An analysis of data from the last ten years highlights that from 2012 to 2022 the wealth of families who use a professional has grown on average by 165% compared to 14% of those who cannot count on a trusted contact person.

All this also has an impact in terms of economic and financial inequality, even if Italy is significantly better off than other European countries.

Based on the first results of the quarterly statistics of the Distributional Wealth Accounts conducted by the ECB and processed by the Bank of Italy, we are below the EU average for concentration of wealth, on the same levels as France and behind Germany which appears the country with the greatest degree of inequality in terms of net wealth.

Nonetheless, the 5% of the richest Italian families own 46% of the total net wealth, this is what we read in the analysis of the Bank of Italy: the less well-off families mainly rely on home ownership while the wealthier ones hold a more diversified portfolio in shares, deposits, policies.

The saving capacity of Italian families is still strong, 39% of Italians declare that they save without too much effort and 52% do not feel at peace if they do not save. The concept of saving is associated above all with two fundamental words: future and security.

To best manage your savings and convert them into profitable investments, trust in the banking, financial and insurance system is fundamental and must be fuelled with strong doses of financial education.

The wealthiest among the customers are also the most knowledgeable, it is legitimate to ask ourselves whether they are more knowledgeable because they are richer or whether they are richer because they are more knowledgeable.

In terms of impact on one’s wealth, the choice of the right contact person and one’s ability to discern on issues relating to the management of one’s financial assets account for 66%.

In other words, a profitable activity that allows you to accumulate significant assets weighs just over a third, so it is certainly a necessary but not sufficient condition for the assets to maintain their value over time and be passed down to heirs.

History teaches us how easy it is to squander large fortunes, perhaps built over many generations, the inability to choose the right contact person, one or more wrong investments can ruin assets accumulated over decades or even centuries of activity.

A good financial advisor and sound financial education can certainly help reduce economic inequalities.

Nicola Ronchetti

L'articolo CONSULTANCY ANTIDOTE TO ECONOMIC INEQUALITIES proviene da Finer.

The year that has just ended was exceptional for all banks: we witnessed a competition between bankers to see who could triumphantly communicate the achievement of the best profit ever.

All the banks – without exception – achieved – as they say among marathon runners – their personal best, i.e. the best personal time over the distance, achieving the best result ever.

A question arises spontaneously: but if in a marathon everyone improved their personal best, wouldn’t the path have been easier?

For the certification of a marathon route, there is an organization that establishes the average difference in altitude and the presence of curves: the time of someone who runs the Boston Marathon (among the hardest) cannot be compared to someone who covers the same distance along a straight downhill stretch.

There is actually a trick: with the cost of money skyrocketing, for those who, like the banks, have billions of customer money in cash, making money is child’s play between loans to customers (mortgages) and deposits in the ECB.

It is important to point out that there is nothing incorrect in all this, even more so considering that the banks, before the hangover from high rates, in the previous two years had to go through the gauntlet of sub-zero rates of the US banking crisis and the worsening of the geopolitical crisis.

The real issue is another, also hoping that the high interest rate situation will last until the end of 2024, imagining only some downward adjustments (– 0.5% in June) and that therefore the banks will be able to enjoy another exceptional year, what will happen next? Where will the banks’ profits come from with capped rates?

And here the biggest question ever arises: is it possible that in a country with a chronically under-insured population and with billions of savings deposited in interest-free bank accounts, there is no decisive and effective focus on protection and managed savings?

Rivers of ink have been written about why Italians don’t take out insurance; certainly, there is an issue of poor financial education, on which much can and must be done, but this is not the only barrier to correct financial and insurance planning.

The banking and insurance sector (if we want to make it unique) is, even if less than in the past, in debt of trust to the Italians, it requires new professionalism and certainly greater proactivity, all things that today seem to be rare commodities, if not in all, at least in most banks and insurance companies.

The real challenge for those banks and companies that want and know how to look beyond the short-term contingency, and therefore also the volatility of rates and markets, lies in having a medium and long-term strategy.

Banks that want to be successful in the future will have to look further in the direction of a sustainable and fair growth perspective for all stakeholders, which lies in uniting the three pillars that support Italian families and businesses in a single service model: protection, savings management and credit.

To do this, trained professionals are needed who know how to win the hearts, even before the wallets, of Italians, respecting everyone’s interests, customers first and foremost: from this point of view the road still appears long.

Nicola Ronchetti

L'articolo FINANCE AND PROTECTION proviene da Finer.

Wealth management is about to face a new renaissance for at least four reasons.

The first is that all over the globe we are inexorably witnessing a concentration of wealth, the wealthier individuals are increasing and the rich are becoming richer.

In Italy, where wealth is less concentrated than in other European countries, 5% of the population holds 46% of total wealth.

The second reason is linked to a cyclical factor, with the drop-in rates, asset management will resume its pace, temporarily slowed down by the BTP phenomenon.

In an interview given to Bloomberg TV by Carlo Messina on the occasion of the World Economic Forum in Davos, the CEO of Intesa Sanpaolo declared that “one hundred billion euros of our clients’ assets can be converted into asset management products. This is a huge amount that will guarantee commissions.”

Essentially, all banks that are able to convert liquidity into managed savings and asset management will be able to benefit from an increase in profitability once interest rates begin to fall, making government bonds less attractive.

The third reason is that the management of a few customers with large portfolios is theoretically less complex than the management of many customers with small financial amounts: in the first case skills and credibility are needed, in the second greater investments in the industrialization of processes.

The private banking and wealth management sector also requires ever greater investments in the digitalisation of processes, but the banker or wealth manager whose role is central remains the one who makes the difference.

There is then a fourth reason why wealth management is a sector that all banks are looking at with growing interest, and that is customer loyalty and the consequent stability of the portfolio.

Private banks are better able than others to satisfy their customers and this allows for greater loyalty and stability of revenues compared to other more volatile customer segments.

Certainly, the ability to provide a good wealth management service is not for everyone and requires experience and some essential ingredients.

The first ingredient for the success of a wealth management service is the ability to count on the best professionals, enhancing and offering growth prospects to those already in the workforce and attracting the best talent.

Private banks have invested and are investing huge resources in growth, research and the ability to attract the best talent.

In the last five years, investments in private banker training have more than doubled, the opportunities for meeting with management, which are fundamental for strengthening motivation and esprit de corps, have increased tenfold, the growth in salaries in this segment is on average twice higher than that of the retail banking.

The second fundamental ingredient is that of innovation: the private banker or wealth management is the pivot of private banking, but cannot be successful if it does not have a bank behind it that significantly invests in processes, digital innovation and multi-channel.

While it is certainly incontrovertible that the relationship between private clients and private bankers is based on a personal relationship, it is equally true that to make this relationship as efficient as possible, it is more necessary than ever to reduce the inefficiencies linked to obsolete procedures that take away time and quality from the relation.

Digital innovation in private banking has struggled to take off in the past, when it was less simple and usable by the senior segments most represented in wealth management.

Everything has changed with the spread and greater use of touch screen technologies and smart phones even by the wealthiest individuals – typically less young.

And this also explains the success of digital native financial advisor networks in private banking and wealth management.

The third fundamental ingredient for implementing a private banking service is the ability to build teams of professionals with multidisciplinary and, ideally, multigenerational skills.

The need to master multiple disciplines that support the ability to manage financial assets and that include tax, inheritance, real estate and corporate issues is related to the articulation and complexity of the assets of the most well-equipped clients.

The fact that in addition to specific skills, the presence of professionals belonging to multiple generations is also useful in the team responds to the mirrored need to dialogue with different generations of customers: attitudes and languages ​​are almost always correlated to the different generational cohorts.

The fourth fundamental ingredient to be able to strengthen one’s position with the most well-equipped customers, converting liquidity into asset management, is the credibility and image of the bank.

This factor is often taken for granted, but equally often the investments to strengthen the brand value of a bank that wishes to target the wealthiest customers are not proportional to the objectives that the bank normally sets itself.

There are important exceptions represented by banks that invest in communication on traditional and digital media, which organize real road-shows in the area aimed at meeting hundreds of current and potential customers.

There are also banks that decide to change their name and therefore identity to better represent and intercept the needs of their customers and to acquire new ones.

One case above all is that of Mediobanca which gave its name to the former CheBanca! – which became Mediobanca Premier – precisely to enhance the DNA of a group and a brand synonymous with wealth management.

The re-branding operation follows a precise “One brand one culture” strategy which aims to strengthen the group’s wealth management also in the private segment as well as in the historically dominated HNWI segment.

The last factor necessary to compete and become increasingly attractive in the wealth management segment is linked to the size of the bank or group to which it belongs.

The reduction in margins and the increase in costs resulting from increasingly stringent regulations require economies of scale and therefore larger dimensions than in the past.

Size will matter more and more in private banking, there will be no alternative to internal growth, for already large banks, or to aggregation with other banks, for medium-sized banks.

More than in the past, size is an essential requirement for sustainable growth and therefore for the quality of wealth management.

Nicola Ronchetti

L'articolo WEALTH MANAGEMENT THE NEW RENAISSANCE proviene da Finer.