Table of Contents:
The heritage of Italian families: an evolving framework
In recent decades, Italian families have accumulated significant wealth, which has tripled since 1990, from 1,975 billion euros to 5,692 billion in 2023. However, this increase is accompanied by a drop in the savings rate, which fell from 28% in the 1980s to 8.4% expected in 2024. This scenario highlights a contradiction: as wealth grows, the ability to save decreases, suggesting a change in consumption and investment behavior
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The AIPB Forum: an analysis of current challenges
The twentieth AIPB Forum, entitled “Private Banking for Growth”, will take place in Milan on 21 November. This event represents an important opportunity to discuss the challenges and opportunities of private banking in Italy. According to surveys, the capacity of families to generate new wealth has decreased, with cumulative flows that went from 1,746 billion euros between 1996 and 2009 to only 950 billion in the following years. This trend worries industry experts, who see the need for a radical change in the approach to asset management
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Investments and wealth allocation
A detailed analysis of Italian wealth reveals that a large part is concentrated in real estate (51%) and in cash (40%). However, only 10% is invested in equities, highlighting a worrying imbalance. The opportunities offered by private markets have been largely ignored, further limiting growth potential. Private banking leaders suggest three key areas for optimizing wealth growth: reducing liquidity, diversifying investments, and extending the investment time horizon
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The role of private banking in economic growth
Private banking is not limited to asset management, but acts as a catalyst for economic growth. It supports Italian small and medium-sized enterprises (SMEs), improving their investment capacity and ensuring competitiveness and resilience. Data shows that 23% of private banking customers are entrepreneurs, who use these services to discuss growth strategies and management of their companies. This link between private banking and economic development is crucial for the future of Italy.
Future prospects for private banking
Forecasts for 2024 indicate an increase in assets managed in private banking, which will reach 1,242 billion euros, an increase of 12.8% compared to the previous year. This result is attributable to significant net inflows and the entry of new players into the market. The challenge for the sector will be to increase investments in equities and private markets, to exploit opportunities not available in traditional markets. Only in this way can private banking continue to play a fundamental role in Italian economic growth.
