Bluerating | July 2023
The relationship between traditional banks and banks based on networks of financial advisors can be viewed either as a home match or as a contrast between two antithetical models.
Indeed, banking groups such as Intesa Sanpaolo, Credito Emiliano, BNL BNP Paribas, Mediobanca, Banca Sella, Banco Desio and Monte dei Paschi di Siena include a network of financial advisors; others such as BPER, could potentially build one alongside their traditional banking activity.
On the other hand, in institutions like Allianz Bank, Azimut, Fineco, Generali, Mediolanum and Zurich Bank, asset management tends to be conducted exclusively by financial advisors supported by advanced digital platforms.
Finally, there is, so to speak, a third wheel: Poste Italiane. With its thirty-three million clients and widespread presence on the Italian territory, Poste Italiane holds a very important position, which the company intends to strengthen further.
The market shares of distribution channels in the financial portfolio of Italian families (deposits, administered investments, managed products, insurance and pension products) at the end of 2022 are divided as follows: the traditional banking channel holds 64% of market shares; networks of financial advisors hold 19% of market shares; finally, Poste Italiane holds 17% of market shares.
Ten years ago, the picture used to be radically different: the traditional banking channel held 76% of market shares (-19% as compared to 2022); networks of financial advisors held 10% of market shares (+90% as compared to 2022); finally, Poste Italiane held 14% of market shares (+21% as compared to 2022).
It is worth noting that the scope has widened along with the financial portfolios of Italian families, which has increased from a little under €2.700 billion to a little over 3.600 (+33% 2010 as compared to 2022).
Thus, while traditional banks have been losing market shares, the amount of money entrusted to them is on the increase. In fact, credit retains clients and thus represents an important advantage over the majority of financial networks.
Consequently, it would be reasonable to assume that by the end of the three-year period 2027-2030, the assets managed by networks of financial advisors will have potentially reached €1.000 billion (as compared to the current €730 billion), with an overall increase of 37% as compared to 2022.
All this in a condition of ceteris paribus, that is when all other things remain unchanged or constant – thus, the three service models/distribution channels currently operating in Italy would evolve without obstacles.
A careful analysis of the background, from the simultaneous occurrence of crises – so much so, that today we use the term polycrisis (concatenation of pandemic, war, drought and inflation) – to the consequent rate volatility, with the comeback of government bonds and deposit accounts, suggests that other external factors may contribute to turning the tables.
The strong acceleration, for example, of digital innovation met the changing needs and habits of Italian people; however, it may potentially foster further change in the relationship between banks and clients.
While the key role of the person represented by the financial professional will remain unchanged and unchangeable, it is reasonable to imagine that the emergence of remote banks, digital bank branches and providers may upset all predictions.
So, the future is no longer as it once was.
Nicola Ronchetti