There wealth of Italian families has reached new recordsdespite the progressive slowdown in the savings rate, eroded by inflation and not even resulting in greater consumption. At the same time, Italian SMEs have few investment opportunities, essentially depending on bank credit, more than in any other European country. In this context, the role of private banking emerges as a support for the economy and for the efficient use of private savings.
These and other themes are at the center of the XX edition of the AIPB Forum – Italian Private Banking Association, entitled “Private Banking for growth”, which will be held tomorrow at Palazzo Mezzanotte in Milan.
The wealth of Italian families
The value of financial wealth of families is almost tripledgoing from 1,975 billion euros in 1996 to 5,692 billion in 2023.
Over the last twenty years, the overall wealth recorded an average nominal annual growth of 1.6%, but in real terms it suffered a average annual contraction of 0.4%penalized by ainefficient allocation. Much of this wealth is concentrated in real estate (51%), and in the investable financial part (which weighs 30% of the total wealth) an imbalance emerges on liquidity (40%) and on the bond sector (45%), while the shares represent only a marginal share of 10%. The opportunities offered by private markets they were almost completely ignoredfurther limiting growth potential.
“The increasing life expectancy, combined with the increasing pension gap expected for the next few years, requires a rethinking wealth allocation strategies which must serve an increasingly longer and increasingly active life”, explained Ragaini, adding “it is fundamental reduce the liquidity quota in wallets, diversify investments more by increasing the share weight, to the detriment of the bond weight, and extending the time horizon of financial choices”.
Savings in braking
The savings rate is constantly decreasing, going from 28% in the 1980s to 8.4% in 2024a level that will remain unchanged over the next three years.
THE flows have halved over the last ten years, going from cumulative flows for 1,746 billion euros between 1996 and 2009 a just 950 billion euros in the following years, and did not translate into a significant increase in consumption or a boost to economic growth.
These flows, alone, are unlikely to be sufficient to satisfy the life goals of families more efficient management is essential and also productive of existing stocks of wealth.
The Private Banking function
Hence the role of Private banking in making the use of savings more efficient for the benefit of families and businesses. 2024 will see a further increase in assets managedwhich will reach i 1,242 billion of euros, marking a +12.8% compared to 1,101 billion in 2023, a result significantly higher than the 1.3% increase recorded by other operators. The main drivers of this growth will be the net collection (58 billion) e the market effect (55 billion), followed by the entry of new players, which will contribute 28 billion.
As for familiesthey identify each other three main areas of optimization to stimulate the growth of household wealth, with similar percentages of consensus: the reduction of the share of liquidity (91%), a greater diversification of investments (92%) and the extension oftime horizon (88%). Priority of the Private Banking industry is increase investment in stocks and private markets in the coming months, so as to seize opportunities not available in listed markets.
At the same time, Private Banking also acts as catalyst for economic growth of Italy, in particular, plays a crucial role in support Italian SMEs towards sustainable growth, improving its investment capacity, strengthening its governance and guaranteeing its competitiveness and resilience over time. Not surprisingly, 23% of Private Banking customers are entrepreneurswho dedicate a significant part of their interactions with Private Bankers to discussing issues related to the management and future of their companies.
