We recently caught up with the chief executive of CMB Monaco, part of Italy-headquartered Mediobanca, about the latest developments in the sector, his own business and the challenges of the economy, modern technology, and talent management.

A private banker must often resemble an orchestra conductor, harmonising various talents, specialists, and resources to serve clients effectively, while simultaneously keeping clients composed in what can be unsettling times. 

So argues Francesco Grosoli, CEO of CMB Monaco, who spoke to WealthBriefing recently on sharp market gyrations, the rising complexity of client needs, and the impact of modern technology. WB met Grosoli at his offices in Monaco.

“During this [market] downturn, I have observed more composure and no panic. The global economy is undoubtedly slowing down,” Grosoli said. “They [clients] are quite keen to buy on dips with quality companies. Crises often present opportunities, but only for those who remain steadfast. In uncertain times, two principles are crucial: stay invested and diversify. That's how long-term value is built."

As clients grow more sophisticated, handling their financial lives is becoming more complex. As a result, CMB is committed to hiring a mix of young and seasoned bankers and experts to keep pace, Grosoli said.

The private bank works closely with the investment banking and corporate banking division of the Mediobanca group, tapping into how many UHNW clients are creating, operating or exiting companies. They are often entrepreneurs who want access to advice and a strong balance sheet. The CMB business has grown via organic growth and acquisitions. In February 2008, Mediobanca acquired Unicredit’s private banking activities in Monaco through CMB. The deal followed the acquisition of ABN AMRO’s branch in the principality in November 2006. 

In its recent financial results for 2024, Milan-headquartered Mediobanca said that in the final three months of last year, group revenue rose 14 per cent quarter-on-quarter to €983 million ($1.13 billion), and wealth revenues expanded by 10 per cent to €252 million. The wealth business logged net new money in the last six months of 2024 of €4.8 billion.

Technology
When asked about AI and technological advancements in the financial services industry, Grosoli remarked, "In the past five years, we've seen significant technological growth, but as an industry, we're still lagging behind. A major challenge for banks is handling legacy systems.”

Private banking is one of “the most regulated and complex sectors,” Grosoli continued. 

A significant task for banks is how to make the most of the “huge amounts” of data that is generated every day. “If you don’t manage data properly and extract value from it, then it can become a problem,” he said. 

AI
Regarding AI, Grosoli believes that the private banking sector is just beginning to experience "phenomenal changes" that will transform lives and jobs. CMB is embracing transformative technologies, with AI set to revolutionise private banking operations. From smarter client onboarding to AI-powered tools, the bank is streamlining routine tasks, allowing wealth managers to focus on value-added activities. Exciting innovations are expected to roll out by the end of the year with AI features for generating investment proposals and portfolio reviews.

CMB also plans to deploy an AI solution for onboarding to run checks. Additionally, the bank is implementing AI on Salesforce to log client meetings, generate notes swiftly, and help bankers prepare for other meetings, saving time and enabling staff to serve clients more effectively. 

“This is all about the 80/20 rule…80 per cent of what staff do is often not key to the job. You can lower this [with technology] and can focus on the core tasks which truly matter instead,” Grosoli said.

“This will be the biggest revolution since the internet,” he continued. "Our clients are getting younger, with many in their forties who are not only enthusiastic about these new tools but have grown up with technology and expect digital solutions as part of their financial experience. AI is not a replacement for human expertise but a powerful enhancement. The wealth management industry needs to embrace this evolution and act now."

(This publication also spoke to Grosoli in 2023 about the CMB Monaco strategy.)