Interview with Marco Clerici

D:How can Digital be a benefit to make the changes Opportunities?

The advent of the pandemic has brought about changes in the operational organization of the business. In particular, there has been an acceleration of digitization to ensure service delivery while maintaining the same pre-emergency quality. On the one hand, critical information activities were enhanced to ensure brokerage, reporting and regulatory activities for Supervisory Bodies such as CONSOB. On the other, an effort was made by IT departments to ensure remote connection and operation of all employees.

D: What challenges and opportunities do these changes bring?

One of the main challenges of this change has been the need to ensure levels of cybersecurity not only from the perspective of the servers, but also of all remote connections whose activities and transactions must be traceable and not compromised by possible hacker attacks or fraud.

Instead, one of the main opportunities involved the realization that a more digital approach did not compromise the institution's core activities and that in the future this way of working may become at least partly structured and continuous. For example, such an approach can limit sometimes time-consuming and inefficient travel. A key aspect at a time when sustainability and ESG issues are becoming increasingly important within companies.
 

D: What was the immediate impact on business?
 

The volume of business has been maintained so far but the real challenge is expected in the next quarter as changes in Investment Confidence and consumer attitude are expected. At the beginning of the crisis it was thought that there would only be a lag in consumption, but now the idea has been established that they will be lost causing considerable losses. In fact, for example, China's Retail sector showed a 20% decline even after the emergency passed. Therefore, monitoring consumer attitudes and the state of the emergency will be crucial. Another very important issue concerns the valuations of some companies that have fallen prey to speculation that have deviated quite a bit from basic performance metrics. In the near future, these valuations are expected to fall closer and closer to real performance and a process of consolidation of these valuations.
 

D: What support can Financial Institutions give to Clients?
 

It must be emphasized that this crisis does not start from the financial system as it did in 2008 when access to credit was restricted but from the real economy. Central banks immediately moved in with stimulus packages that could be a driver for faster economic recovery than in the past. In addition, government guarantee mechanisms are essential tools for banks to extend credit to the real economy, allowing for a faster restart even in a situation of prevailing uncertainty.

D: How can a committee such as the Steering Committee of the Corporate Banking & SME HUB and a University Research Center make a concrete contribution to how to develop Innovation within the Banking system?

Many professionals such as lawyers, accountants, research centers and consulting firms are making a great effort to publish reports with respect to the current situation. So the activity of Steering Committee should continue with the goal of disseminating real and correct information regarding the implications and future prospects of the CIB industry.