Mediolanum: 25 years of a bank that comes to visit you at home

BarcelonaIn 25 years, the financial landscape has changed dramatically: from extensive branch networks to digital banking and the decline of physical branches, which has led public administrations, such as the Generalitat of Catalonia and the Barcelona Provincial Council, to launch mobile banking service concessions. From 2010 to the present day, two-thirds of bank branches have disappeared. In fact, there are now the same number as there were in 1970. And more than 100,000 jobs have been lost in the sector. When Fibanc, the institution founded in 1983 by financier Carles Tusquets, was born, competition among banks was about who had the most branches, the exact opposite of today. And, at the end of 2000, long before the financial crisis that devastated a portion of the financial system, Tusquets opted to merge with the Italian bank Mediolanum. It was a newly established entity, founded some four years earlier in 1997, family-owned and managed by Ennio Doris – today his son Massimo is the CEO of the parent company and his sister Sara is the vice president and also of the subsidiary in Spain.

Why was this entity chosen when there were merger offers that seemed more compelling, such as one from a Swiss bank and a large US insurance company? Because of its then-innovative model, consisting of a network of financial advisors and a very simple motto that was very successful in Italy: high tech with high touch (Technology and personal relationships), Tusquets recalls. It wasn't easy because at that time in Spain there was one bank branch for every 1,000 inhabitants and little tradition of financial advice, the president of Mediolanum remembers. In fact, some attempts, like that of the former Caixa Catalunya, which combined advisors with a traditional branch network, were a resounding failure. Some of the large banks have also used the formula, but only as a complement to physical branches.

In the case of Mediolanum, the advisor network is the heart of the business and yields excellent results. Through September, they increased their total net asset inflow in Spain by 68%, to €1.539 billion, of which another €1.367 billion, or 47%, was net managed assets, meaning not current accounts but assets invested in the market (investment funds, pension plans, or insurance). As of September 30th, it had 276,736 clients, 12% more than from January to September 2024, and 1,636 financial advisors, who call family bankers2% more. Total assets under management amount to €14.843 billion, a 22% increase. These figures, according to the bank's representatives, reflect that clients want direct service. Mediolanum, which moved its headquarters to Valencia in 2017, coinciding with the Catalan independence movement, maintains Barcelona as its main operational hub. CEO Luca Bosisio explains that he discontinued the Fibanc brand in 2010 to project a more global image. His goal is to continue growing with its original model. The potential is significant, since in Italy this model manages around 21% of household savings, while in Spain it doesn't even reach 1%. Bosisio states that, initially, the model confused clients because the advisor offered to visit them at their home or wherever they chose. "People thought they would be charged for the visit, and we had to explain that it was part of the advisory service," explains the CEO. He attributes their success to the fact that "clients want personalized advice." And proof that the formula works is that "in two years, we've achieved more than 50% of what had been done in the previous 25 years," he states.

The bank complements its offering with 80 offices, but these are not dedicated to selling products or banking services; rather, they are for serving clients, they explain. Tusquets emphasizes that there is enormous potential for increasing advisory services, since more than 40% of household savings in Spain are tied up in bank accounts. Mediolanum has more than 1,600 of the 8,000 advisors in Spain, and there are also many former bank employees who can have the opportunity to develop a new career by advising families, says the CEO. Sara Doris, the entity's vice president, recalls that the formula they apply was developed by her father, who had the idea when he identified the needs of the self-employed. He realized that more than selling products to clients, they needed "a comprehensive consultant to advise them throughout their lives." "In the initial visits, it's essential to listen to the client and then make proposals. That's why we have one voice and two ears," they explain. Through September, globally, the group surpassed two million clients, a 6% increase; and 6,600 financial advisors, a 5% increase; with total net inflows of €8.155 billion, a 14% increase, of which €6.583 billion are earmarked for investment in the market—that is, they are not funds sitting idle in bank accounts.