Bluerating | March 2021

2020 was marked by exceptional results despite the difficult economic and social context, one of harshest since the postwar period. Many people wonder what kind of year 2021 will be for the world of financial consultancy. 

Much depends on vaccination plans, social safety nets and on the plan for relaunching the economy laid out by the new government led by Mario Draghi and implemented with the support of the European Union. 

As for financial networks, in the first months of 2021 the positive trend begun in 2020 has shown no sign of abating.

Today, the world of financial consultancy together with the banking industry is called upon to contribute towards the relaunch of the country. 

Banks are to endure a strong pressure on the credit front when the moratoriums on mortgage payments will expire. Moreover, they shall support companies and entrepreneurs brought down by the pandemic. 

Financial networks will not need to face such issues; in fact, one of the strengths of their service model is low capital absorption – in other words, while banks grant credit, that is they lend money with the risks that this entails, networks are entrusted with money by their clients. 

These are complementary social functions. However, many in the baking world believe that the work being done by financial networks today is less complex than that carried out by banks. The latter are facing an unprecedented crisis concerning their service model attested by a period of acquisitions and renovations typical of a mature sector. 

In 2021, financial networks should have four priorities. Firstly, keep doing what they can do well, that is managing the assets of Italian people. 

Secondly, they should aim at an even more ambitious goal, that is doubling the amount of assets under management in the space of three/five years, thus contributing to take advantage of at least one third of the 1.700 million euros currently on checking accounts earning no interest. 

Thirdly, they should contribute towards the dissemination of knowledge about protection and asset management: Italian people have always been underinsured and this is soon going to have a devastating impact on our society and welfare. 

Finally, financial networks should allow motivated and talented young people to have access to the profession. This would not only ensure a future to the job, but also give an opportunity to a generation burdened with an enormous public debt with no access to the social safety nets granted to their parents. 

Financial networks working in these four directions shall guarantee their sustainable growth and the sustainable growth of their Country.

Nicola Ronchetti