The wealth management market - Italy

In 2020, the global asset management market was valued at $475.9 billion and is expected to reach $730.7 billion by 2025, with a compound annual growth rate of 9.0%. This growth is due to factors such as the increasing wealth of high-net-worth individuals, rising demand for alternative investments, a growing population of retirees and an increase in the size of individual investments. In terms of asset classes, fixed-income securities have emerged as the most important for wealth management due to the lower risks associated with them.

The market is well diversified between different types of financial intermediaries, with private banks, full-service wealth managers, investment managers and stockbrokers all playing an important role. The Italian wealth management market has seen a decline in the number of entities due to the disruption associated with financial technologies and regulatory changes such as MiFID II. Despite this consolidation, the wealth of high-net-worth households in Italy increased by an average of 5.2%, attracting international companies such as Barclays.

The market is also evolving with the adoption of dynamic technologies and investment strategies. Demand tends to come from middle-aged individuals, with greater participation in northern Italy, and the Italian regulatory framework imposes a minimum capital requirement of €1 million on asset management companies. Please note that the additional data present in the original text for the years prior to 2020 have not been included in this summary for your information.

Growth and dynamics of the asset management market

The asset management market in Italy has undergone significant changes, driven by a series of socio-economic factors. There is a trend towards increasing demand for asset management services, particularly in the middle-aged segment of the population. People aged 58 to 76, who account for almost 41% of the population in this age bracket, are primarily concerned by wealth management practices. These people generally have higher earning potential and are looking to secure their financial future after retirement. In terms of investments, the average amount invested per individual in wealth management is around 47,000 euros, with older generations tending to invest larger sums.

Geographically, demand for wealth management services in Italy is unevenly distributed, with a higher penetration rate in the northern regions, where percentages ranging from 25% to 40% of the population are involved in wealth management activities. By contrast, the southern regions and islands show a lower level of commitment, with participation rates sometimes below 10%. Despite these trends, the Italian market has been a hot spot for both domestic and foreign wealth management companies, with the total amount held in current accounts amounting to almost 2,000 billion euros. The interest of households with substantial wealth in investing has led to the re-emergence of international players and the introduction of new initiatives aimed at capitalizing on the large volumes of untapped financial assets. Data show that, of the estimated 1,150 billion euros in financial assets, portfolios managed by private bankers account for around 908 billion euros, suggesting considerable room for growth in the market. With demand expanding, Italy's wealth management sector offers lucrative opportunities for industry players. These opportunities are not going unnoticed, as foreign companies are now taking an interest in the Italian market, ready to capitalize on their global presence, technological advances and economies of scale. This influx of competition has the potential to reshape the industry's landscape, and brings with it innovative services tailored to Italy's affluent clientele.

In summary, the Italian wealth management market looks robust, with growing participation from middle-aged and older generations seeking financial security for their retirement years. Geographical differences remain a relevant feature, with greater participation in the wealthier northern regions. The large volume of savings and financial assets present in the country continues to attract new entrants to the market, both internationally and locally, pointing to a trend towards further growth and expansion. the Italian wealth management market is characterized by the presence of influential financial groups that exert considerable influence on the direction of the sector.

These companies cater for a wide range of clients, from high-net-worth individuals to discerning investors seeking to diversify their portfolios and secure their financial futures. The landscape is dotted with traditional banks that have expanded their services, as well as modern, agile companies that are leveraging technology to redefine the wealth management experience. Without dwelling on their sales figures, let's take a look at the profiles of some of the major players highlighted in Assogestioni's report, who have established themselves as cornerstones of the Italian wealth management market :

• Intesa Sanpaolo: Intesa Sanpaolo, one of Italy's leading banking groups, offers a comprehensive range of financial products and services. With a deep-rooted presence throughout the country, the group focuses on customized wealth management solutions designed to meet the diverse needs of its customers. Intesa Sanpaolo's strong presence in the Italian market underlines its role as a dominant player in the field of wealth management.
• UniCredit: A global banking and financial services company with a significant presence in Italy, UniCredit offers its wealth management services to a broad customer base. Its approach to asset management is based on in-depth knowledge of the domestic market, as well as an appreciation of the nuances of global investment trends. UniCredit's strategy is to combine local expertise with international reach to provide well-balanced wealth management services.
• Generali Investments: Part of the Generali Group, renowned for its insurance and financial products, Generali Investments brings a wealth of expertise in wealth and asset management. The company is known for its customer-centric approach and for offering sound investment strategies that meet the risks and objectives of individual investors.
• Mediobanca: Serving the Italian financial sector for many years, Mediobanca is a leading investment bank that has extended its activities to wealth management. Its services are marked by innovation and a forward-looking attitude that appeals to modern investors looking for dynamic and flexible wealth management options.
• Banca Mediolanum: Renowned for its pioneering use of information technology to enhance banking services, Banca Mediolanum has successfully positioned itself as a first-rate choice for customers seeking technology-driven wealth management solutions. Its commitment to leveraging digital platforms and tools has resonated well with customers who value convenience and accessibility in managing their assets.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 10/07/2023

Summary and extracts

List of charts

• The asset management market - Expected market size
• The Asset Management Market - Segmentation by Asset Class
• The Asset Management Market - Segmentation by Intermediary
• The Asset Management Market - Number of Entities
• The Asset Management Market - Number of Employees
• The Asset Management Market - Legal Entities
• The Asset Management Market - Figures Invested
• The Asset Management Market - Major Groups
• The Asset Management Market - Generations
• The Asset Management Market - Average Value Invested by Generation
• The Asset Management Market - Distribution Channels
• The Asset Management Market - Average Income per Household
• The Asset Management Market - Life Expectancy at Birth