Italian Private Banking confirms itself as a successful model, attractive and appreciated by customers and AIPB estimates that the 844 billion euro of managed assets could rise to about 920 billion euros in 2021. A goal that leads the sector to increase its weight, among the distribution channels, from 27,5% to 28,2% of the financial wealth of families.
The trend was illustrated by the AIPB president, Paolo Langé, during the XV edition of the Private Banking Forum, an event organized annually by AIPB – Italian Private Banking Association and now a point of reference for the sector at a national level, attended by - in addition to Paolo Langé (President AIPB), Saverio Perissinotto (AIPB Vice-President), Antonella Massari (Secretary General AIPB) and to the Senior Partner of Monitor Deloitte Charles Murolo - among others: Andrea Sironi (President of the Italian Stock Exchange), Glory Bartoli (Luiss University professor), Franco Bruni (Vice President of ISPI-Professor at Bocconi University), Carmine DiNoia (Consob Commissioner), Robert Pocket (Councillor for Budget and State Property of the Municipality of Milan), Stephen Venturi (Vice President of Assolombarda).
"We processed for AIPB - comments Charles Murolo, Senior Partner Monitor Deloitte – a composite index which, on the basis of various factors, depicts a competitive Italian “Financial Hub” due to the maturity of national Private Banking but with opportunities to get closer to international leading practices in terms of digital maturity, country system and business environment. The "Best in class" financial hubs, such as Switzerland, Singapore, the USA and Great Britain, stand out from Italy for their "ability to create a system", a fundamental element of attraction for Private Banking customers.
“The Monitor Deloitte competitiveness index – he declares Paolo Langé, President of AIPB – points out that in order for Italian Private Banking to join the “Best in class” in the international positioning of the sector, it must feel strongly committed to supporting and influencing the country's growth and the development of system improvement policies”.
“Private Banking can have an impact – he declares Antonella Massari, AIPB General Secretary – directly and indirectly on some factors that drive the growth of the economic system, acting on financial performance, productive investments and fostering a continuous dialogue with the other relevant stakeholders. Private Banking can represent an important driving force for development thanks to assets under management of a significant size and with characteristics comparable to that of other long-term investors (€844 billion in private banking, insurance companies €750 billion and pension funds and private 250 billion euro)".
Observatory Aipb-Deloitte monitors: “Italian Private Banking in the international competitive framework”
In summary ipunited in strength and di weakness for international competitiveness
THEcompetitiveness index created ad hoc by Monitor Deloitte, it analyzed the main international financial centres, including Italy, measuring their ability to attract profiles of private investors, both domestic and international.
The 15 countries that have both a developed Private Banking industry and substantial volumes of financial assets owned by foreign clients were selected, namely: Bahrain, United Arab Emirates, France, Germany, Japan, Greece, Italy, Luxembourg, Monaco, United Kingdom, Singapore, Spain, United States, South Korea, Switzerland.
To assess the attractiveness of international financial centers have been used 5 indicators which summarize about forty critical values of success:
- On the first indicator that "measures" the stability of the country system, Italy at international level ranks in the rear - in eleventh place - evidently discounting some problems of financial and political stability of the country.
- The second indicator describes the country's ability to create a favorable environment for attracting investments in the area both by private Italian families and by international profiles. In this case, Italy is positioned in the middle of the ranking, with areas of excellence such as tourist attractiveness and areas for improvement such as the infrastructural component and the capitalization of the financial market.
- The third indicator of the Report analyzes tax policy and regulation which are very important levers for influencing the attractiveness of a country as an international financial centre. In this case, Italy is positioned in the middle of the ranking, but ahead of countries like the United States and France.
- The fourth indicator of the competitive index focuses on level of digitized services offered within financial centres and in this case the parsing returns to Italy a very backward position in the standings consequently highlighting a certain urgency to increase the volume of investments in the field of digital innovation.
- The fifth indicator of the competitive index measures how much the tradition of the Private Banking service is consolidated in Pcountry, measured on various levels, for example on the presence of the main international players in the sector and on the quality and efficiency achieved by the system in our country. The Italian Private Banking industry in this case occupies the fifth position and precedes relevant financial centers such as Germany and France.
From the point of view of the maturity of the Private Banking system, the Italian market is therefore competitive.
Some challenges remain related tobusiness environment and regulatory and tax environment. As regards the stability of the economic system, the country's risk of default and the low number of governments that have reached the natural end of their mandates, mean that the economic system, together with the political one, represent a point of attention for both an Italian and a foreign private investor.
Italy, classified in the group of so-called “aspirants”, is far from the "Best in class" USA, Switzerland, Singapore and United Kingdom and must pay attention so that in the future the gap with the more competitive centers does not widen.
What seems to distinguish the "Best in class" from Italy is the "ability to create a system", which is essential for establishing itself as a leading market for foreign capital.
- USA excel for example on "Business environment" and "Fintech", the Switzerland (the best among the countries considered in the analysis) on inflation and sovereign debt risk. Singapore excels because the tax burden is extremely low and this makes the country attractive for investors.
France and Germany are “wannabe” financial centers which nonetheless enjoy a competitive support from the country's system that is better than Italy. There France shows high scores in terms of infrastructure rating and institution effectiveness.
While with regard to the Germany, the gap with Italy is more marked in dimensions such as the "transparency and correctness of the legal system".
Italy attractive for international customers?
From the analyzes it emerges that, overall, Italy shows clear elements of attractiveness for international profiles thanks to a good development of the Private Banking Industry.
Italy's positioning could be further strengthened by greater stability of the economic system. Indeed, in a context in which the leading markets are characterized by a competitive contribution from the country system, active support for economic and political growth is the enabling factor for the success of Italian Private Banking.
The last part of the Study aims to identify which are the most interesting potential foreign markets for Italian Private Banks that can direct international growth strategies towards three possible target customers: Italians with interests abroad, Italians residing in foreign countries, foreigners with interests in Italy.
As regards the former, the Report identified two drivers of choice: the volume of real estate investments made by Italians abroad and the number of foreign companies owned by Italy. Spain, France, the United States and Switzerland seem to be the most interesting countries for real estate investments by individuals with high potential Private. As for the foreign companies of Italian entrepreneurs (about 30.000 companies, of which 60% is represented by Micro Enterprises, <10 employees) the analyzes show that 32% is concentrated in the USA, Germany and Spain. France and England follow in importance.
Globally, the Switzerland it is the state with the highest relationship between the number of resident Italians and potential private customers. Among the European countries, after Switzerland, the countries that host the main communities of Italians with a private potential are la Germany, la Francia, il United Kingdom and the Belgium.
United States, Germany and the United Kingdom, are the countries of origin of the largest property buyers in Italy, contributing, overall, to more than half of the retail real estate acquisitions made in Italy. Among the most important private centers, French and Swiss private families also have interests in Italy (11%).
