With an average growth of 2.4% per year, the total wealth of Italian households should reach 3,711 billion at the end of 2024, generating a flow of new wealth of over 250 billion by 2024. The private banking segment (a sector that examines individuals who entrust 500 thousand euros to financial intermediaries) instead should always achieve an annual growth of 4% in the three-year period. This is the estimate that comes from Prometeia on behalf of Aipb, the Italian private banking association.
The propensity to save
With the highest level of uncertainty linked to the numerous factors that are emerging on the horizon (war in Ukraine, increase in the price of raw materials, inflationary pressures, change in central bank policy, reduction in GDP growth) according to Prometeia forecasts on behalf of the Italian Private Banking Association, households’ propensity to save should remain high over the next three years but slow down due to inflation expected in 2022 above the 5 per cent threshold. According to the analysis, in a decidedly changed scenario compared to that of a few months ago, wealth would go from 3,454 billion at the end of 2021 to 3,711 billion, of which 100 billion up thanks to the market effect.
The private banking market
The market served by private banking (a sector that considers the assets of individuals who entrust 500 thousand euros of their financial wealth to specialized intermediaries) should grow by 4% per year and managed assets reach 1,157 billion at the end of 2024 compared to 1,030 billions counted last December. More specifically, in the three-year period an increase of 5.1% is estimated due to the effect of the financial markets on the value of portfolios and of 7.3% the attraction of new savings for investments.
This growth marks a further increase in the Private Banking market share compared to other distribution channels and affects all components of the activities (from policies to funds to asset management). The sector therefore continues in the good trend that emerged in 2021, the year in which it increased its weight in the management of household investments, attracting many savings and achieving a growth of 10.5%, double compared to other distribution channels.
Andrea Ragaini, new president of AIPB
The association will be chaired by Andrea Ragaini, Deputy General Manager of Banca Generali with responsibility for Wealth Management, Markets and Products for the next three years. In the 15 years of the Association’s life, this umpteenth passing of the baton touches for the first time a member of the world of consultant networks, professionals whose role in the world of managing large assets has progressively increased over the years. “Innovation, protection and sustainable growth will be the keywords that will guide the industry over the next three years – recalled Ragaini -: in this context, our commitment will be focused on enhancing the distinctive aspects of the Private Banking industry”. The current Secretary General of the Association, Dr. Antonella Massari, has also been reconfirmed for the next three years.