Technological innovation It is a fundamental factor of competition in Italian private banking, able to influence the banker-client relationship, giving the former the necessary support for an increasingly advanced consultancy model. This is what emerges from the research on technological and organizational innovation in the Private Banking sector in Italy, conducted byItalian Private Banking Association (AIPB) in collaboration with Supernovae Labs, the results of which were presented during the seminar organized by the AIPB Technical Commission “Digital Innovation & Fintech”, at the BlackRock headquarters in Milan.
.“Technological innovation is central to the Private Banking agenda – states Antonella Massari, AIPB General Secretary – The trust that customers place in professional advice is based on important service components, in particular on the professional support dedicated to the management of financial assets, which is a priority for 70% of customers. Technology will allow a further increase in the level of customization of investment proposals and greater speed in adapting portfolios to the evolutions of the financial market.”
"The research clearly shows how the leaders of Italian Private Banks have understood that, in a scenario in which national and European regulators are pushing towards market rationalization and increased competition, the institutions that will be able to quickly seize the opportunities generated by technological innovation will drive the transformation of the sector. To generate value, technological innovation will have to be permanently integrated into operational and service models, as is already the case in the main international best practices" explains Carlo Giugovaz, CEO and founder of Supernovae Group, a consultancy boutique on innovation issues for financial markets.
Digitalization and Artificial Intelligence
The study shows how the pandemic marked a turning point in the digitalization process of the sector. In fact, over 70% of Italian private banks declare that they have provided their Bankers (and another 18% are in the process of releasing) a technological-digital equipment able to enable advanced consultancy, open to financial planning and generational transition issues.
The next step is obviously represented by theArtificial intelligence, which emerges as the most relevant technological factor from a strategic point of view to support advanced consultancy models, with Investments expected to grow by 9,7% in 2025. Institutions are already experimenting with the potential of Artificial Intelligence for greater customer knowledge, aimed at more precise customization of the consultancy offer, as well as the value of that Generative to support Bankers and “headquarters” people through conversational bots. Private leaders believe, however, that at least in the short term, the most immediate benefits of AI applications will continue to be recorded in the area ofoperational efficiency while, to see business impacts, an injection of new resources and specialized skills is necessary.
The new Fida regulation
76% of institutions already offer advice on assets held with third parties, with more or less integrated solutions that allow clients to have a comprehensive view of their assets. However, less than 50% of institutions have developed solutions that allow for the automatic uploading of data from portfolios held with other institutions and automatic data updating. For Leaders, Fida regulation (Financial Information Data Access) will help overcome the limits of the current approach, further strengthening the advanced consultancy service (100%), increasing the level of competition in the market (72%) and encouraging the birth of new digital challengers (59%). Only 21% think that Fida will lead to the need to review its business model by developing a “pure digital” channel alongside the current ones to win the competition and resist the entry of new players including FISPs (Financial Information Service Providers).
Cybersecurity and Data Intelligence
La computer security and the protection of personal data are considered an absolute priority, second only to the need to improve solutions for managing the banker-customer relationship. Hence the need to further strengthen protection systems against new digital threats, through the adoption of AI tools to prevent fraud, detect anomalous behavior and defend against deep-fake attacks is considered crucial.
Another fundamental theme concerns the adoption of advanced CRM tools, analytics and data intelligence, considered essential to improve the relationship between banker and customer. According to the research, data analysis technologies, combined with Artificial Intelligence, are allowing banks to gain a deeper understanding of customer habits and preferences, thus favoring the personalization of the offer. The research showed that investments in this area will increase by 9,1% by 2025, making CRM a fundamental pillar of the Private Banking service.
Finally, pay attention to the sustainability: the offer of socially responsible and sustainable (ESG) investment products has become a central element in the strategies of Italian private banks. The study shows how the demand for sustainable products is growing, especially among younger and technologically advanced customers, so much so that today, 100% of institutions have integrated ESG products into their catalog, however only 31% have already adopted commercial reporting tools for the environmental footprint of the customer's portfolio, perhaps due to the lack of consistent standards and ratings among the various market players.
Based on these results, Aipb and Supernovae offer three suggestions aimed at promoting the development of Private Banking in Italy: investing in organizational culture, adopting advanced technologies such as Artificial Intelligence, continuing to strengthen IT security.
