Bluerating | September 2022

When it comes to networks of financial advisors, many factual and subjective factors suggest that the second semester of 2022 will end with a bang.

Let’s start with some factual elements. During the first semester of 2022 (truly an annus horribilis), the system of financial networks has withstood the weight of world geopolitical crises in addition to the fall of one of the very few reliable governments in the history of our young Republic.

Data provided by Assoreti indicate that seven of the financial networks registered to the association have achieved positive results in terms of assets under management if compared to last year. Even when the level of volatility was at its highest, the drop never exceeded 5%.

If we look back on the past fifteen years, the market share of financial networks has tripled and the amount of assets under management has increased from less than €150 billion in 2007 to over €700 billion at the end of 2021.

In fact, financial networks represent a healthy sector characterized by consistent organic growth. They achieved positive results in 2016-2021, a five-year period marked by two key events: the entry into force of the Mifid II and the outbreak of the pandemic.  

After all, financial networks have withstood the waves of stormy seas, proving their ability to surf effortlessly on rough water – their service model can transform and adapt better than the so called ‘traditional’ banks.

However, all that glitters is not gold: the volatility of the markets has resulted in many savers deciding to keep their liquid assets, though history has shown that investments should be made with continuity and, most of all, to a minimum. Moreover, the maturity of the sector will inevitably result in concentration, while the number of financial advisors is growing, yet less than anticipated.

The job of financial advisor requires an intrapreneurial mindset, an uncommon quality among the people who manage the savings of Italian people.

There are, in fact, some unequivocal data: over the past ten years, more than ten thousand bank branches have been closed, resulting in a decrease of approximately fifty thousand bank employees.

However, the figure of the financial advisor opens the way to the future of an ever-growing field.

A notable banker has recently addressed a statement to his corporate and private managers, encouraging them to reach the very challenging goals ahead. In it, he complimented those who – like financial advisors – earn money on the basis their own merits. 

Of course, proactivity is a key factor for the success of financial advisors; equally, the ability of banks/financial networks to provide adequate support should not be underestimated.

A sector based on a meritocratic remuneration system, that operates in a hyper-regulated context, that invests each year on digital innovation and training for financial professionals and whose clients are on average the most satisfied cannot but face the upcoming storms with the wind in its sails.

A happy journey to all financial advisors and, particularly, to those willing to take up this beautiful job, aware that even with a bank/financial network behind them, their success will depend mostly on their own merit.

Nicola Ronchetti