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Alessandro Varaldo and Lorenzo Portelli

This chapter shows how it is important to advise and improve the education of Italian households regarding investment of their financial assets (4 trillion euros) in a complex scenario (negative and growing interest rates, historical low volatility and new European financial rules). The virtuous MiFID II/MiFIR and the new bank capital adequacy rules are forcing the Italian wealth management industry to improve their advisory models and the knowledge of households’ real and financial needs. A survey to investors was formulated based on five macro-financial scenarios that show how traditional behavioral bias has a negative influence on investment decisions, reducing the financial return and wealth value creation for different types of investor. In order to smooth this attitude and reduce the depreciation of assets, the wealth management industry should: (1) increase investors’ financial training and education – this model can be used by the advisors to explain to customers the reason why; (2) improve customer relationship management techniques combining financial and behavioral analysis (that is, adapting our survey to different customer segmentation models and monitoring in time); (3) create new financial and insurance solutions based on asset management models that optimize the macro-financial scenarios with the behavior of the investors, based on our assumptions (that is, liquidity target volatility and multi-asset solutions).