Italy’s private banks prepare for generational, digital, regulatory change | World Finance

Italy’s private banks prepare for generational, digital, regulatory change | World Finance


Stefano Colasanti: The Italian private banking
market, served by private institutions, has been growing steadily in the last three years
up to an overall value of €800bn at the end of 2018 – with an overall growth of
eight percent with respect to 2015. The Italian Association of Private Banking
estimates project growth to continue also in 2020, when the market is estimated to reach
€900bn. At the end of 2018, BNL Private Banking managed
around €34bn, positioning itself as the fifth competitor in the Italian private banking
market. Three main forces will shape the Italian private
banking market in the following years: generational change, digitalisation, and regulation. In the coming years, we’ll have a huge amount
of wealth that flows from the current owners – the current private banking clients – to
their heirs: millennials, generation X. It’s very important for the major wealth managers
to create, to build in time, a good relationship manager with their client heirs, because private
banks that first prepare this generational shift will get a very important competitive
advantage, and tap into the client base of the competitors that are not able to prepare
this generational change. The second force in Italian private banking
market is digitalisation. Clients want to have the same customer experience
by the financial institutions and non-financial companies – for example, Amazon. Private banks – Italian private banks – are
not lagging, and they need to put digitalisation at the centre of their agenda, to offer clients
this type of very high value customer experience during the relationship with the clients. The last force in Italian private banking
is regulation. The introduction of MIFID II in Italy will
have a very important and significant impact on the Italian private banking market: for
the first time, clients will be displayed the costs associated with their investment
products and services. Private banks have to review their product
offering by simplifying, making it compelling for their clients. It’s very important to offer to the clients
the right services or products with the right costs, to respond to the right needs of the
clients. BNL Private Banking embarked on a transformation
journey of its service and business model, which resulted in three key actions. The first action is a new approach to wealth
advisory, by reaching the offering services of non-financial products and services: corporate
advisory, issuance advisory, real estate advisory; to manage the global wealth of clients, to
be the partner of the client in managing their wealth. The second key action is the digitalisation
of the relationship model, by introducing a new, innovative, very important tool platform
for the clients’ discovery – for example, humanist – or for managing their relationship
with the bank such as the app, My Private Banking. In this way we want to create a very important
relationship with the new generation of clients. We created a specific contact centre dedicated
to our private bank clients, that is active 24/7: it’s a fast-lane, dedicated lane, to
address the clients’ needs in terms of banking, financial, and non-financial needs. Third is the role that BNL Private Banking
can play in sustainability. BNL Private Banking can address the client
to financial investments to sustain the environment, to sustain the economic growth, to sustain
the growth of our country, to help the people. I strongly believe these new strategic actions
will give BNL Private Banking a competitive edge over its competitors, and innovative
services, solutions, products and tool platforms that we are introducing will help us to be
more attractive to the new generation of private banking clients. Thanks for watching. Learn more at bnl.it. Click now for more interviews with innovative
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