Banco Mediolanum: the challenge of reproducing its growth in Italy in Spain

MilanThe Italian bank Mediolanum landed in Spain in 2000 with the purchase of Fibanc – an entity founded by businessman Carles Tusquets – with the idea of replicating its model in the transalpine country, in operation since 1982. At the beginning of the new century, Spanish entities were struggling to expand their network of offices to reach every corner of the country: having branches was synonymous with success. Mediolanum, on the other hand, had for years been betting on a different system that revolved around the figure of what is called a family banker, financial advisors who offer to visit the client at their home and with whom they maintain constant contact. And far from the more traditional business of banks – where a good part of the clients have their immobile assets in bank accounts – these advisors move money and place it in investment funds, pension plans, or life insurance, among others.

Over the last 25 years, Mediolanum has made a place for itself in the State. According to data provided by the entity itself, the client network has increased uninterruptedly over the last 16 years, exceeding 292,000 (in 2019 it was less than 140,000). Client assets have also tripled in the last seven years, to over 15.5 billion euros, while the network of family bankers has 1,670 professionals, an increase of 62% since 2019. "The growth rates in Spain are better than those recorded in Italy 15 years ago," says Luca Bosisio, CEO of Mediolanum bank in Spain, in statements to ARA, during a press briefing in Milan to commemorate the 30th anniversary of the group's stock market listing.

After a quarter of a century of consolidation, the entity headquartered in the Lombardy capital believes it is time to redouble its bet on the Spanish market, vindicating a business model that still sounds strange to some households in the country. In Italy, 21% of family savings are managed through financial advisors – like those Mediolanum has – while in Spain it does not yet reach 1%. "In the last two and a half years, we have grown by more than 60% in wealth management compared to the first 23 years," indicates Bosisio, who feels "very optimistic" about the future of the subsidiary in the State.

In this regard, and in times marked by digitization, the entity continues to claim the added value of its family bankers to convey peace of mind to the client. "Advice is fundamental in times of artificial intelligence," emphasizes the CEO of the Mediolanum group, Massimo Doris, son of the founder, Ennio Doris.

For the company, using technology is inevitable, but it must always be done from the idea of "renting" it. "We will not compete with giants like Apple [...], but we will take advantage of what these companies do to offer it to clients without neglecting interpersonal relationships," complements Bosisio.

Growth of the branch network

Far from the sector's current trends, focused on eliminating branches to reduce expenses, Mediolanum plans to expand its network of offices in the State, made up of about eighty of what the bank calls family bankers' office, spaces where its financial advisors can meet to work or meet with clients. Throughout this year, new offices in cities like Valencia or Malaga have been consolidated, and new openings are planned in towns like Seville or Bilbao.

In Barcelona, Mediolanum's flagship building is located on Barcelona's Diagonal, a space that until 2017 had also been the group's registered office in Spain. Coinciding with the Process, the entity moved its headquarters to Valencia, maintaining Barcelona as its operational center. Bosisio, in response to the question of a possible return to Catalonia, points out that it all responds to an "operational interest". The Valencian Country is where the group has "more clients and a larger sales network –he says–. Therefore, it is correct to be there. You can never say never, but it is not in our plans".