CMB: Future of industry is combining investment banking and private banking

CEO Francesco Grosoli explains how Compagnie Monégasque de Banque has evolved to serve Monaco's increasingly entrepreneurial HNWIs

December 20, 2019

In the last 20 years, Monaco has seen an inflow of very sophisticated clients – not just millionaires and billionaires, but active ones, seeking help not just with managing their money, but managing their businesses. This is why Francesco Grosoli, CEO of Compagnie Monégasque de Banque (CMB), believes the future for the bank – and the industry as a whole – is to combine private banking with investment banking. He explains how CMB’s participation in the pan-European Mediobanca Group facilitates these services, and his personal ambitions for the future of the bank.

World Finance: Francesco, how does CMB set itself apart in such a highly competitive market?

Francesco Grosoli: Before talking about CMB, I think it’s important we talk about the Monaco marketplace – and how Monaco in the last 20 years has evolved.

We had an inflow of very sophisticated clients. Active entrepreneurs; billionaires – more than 50; millionaires – more than 12,000. It’s a very competitive market. And clients – particularly entrepreneurs – are looking for help in not only managing their money, but also in their different businesses.

We might have clients wanting to buy businesses, or to sell businesses; and having behind us Mediobanca Group, which is a pan-European investment banking group, is a great add to the service that we can provide.

And of course, CMB is there to manage their wealth: not only to invest their money, but also to consult us for the strategy and the future of their families.

World Finance: Mediobanca recently announced its four year plan; how does CMB fit into this strategy?

Francesco Grosoli: It’s very ambitious. So Mediobanca has planned a four percent increase in revenue, to €3bn. A four percent increase in earning per share, from €0.9-1.1bn. And a shareholder distribution over the period of €2.5bn.

And on top of it, CMB has been even more aggressive. Our goal is to reach €15bn of assets under management – so more than 20 percent increase from where we are now.

World Finance: And how do you intend to achieve this?

Francesco Grosoli: We have hired already quite a big team, joining me at the same time. Investment specialists, private bankers, to manage the client assets. But also creating synergies with the group.

The future of the industry is to bring together investment banking and private banking. Creating a private investment banking service that is, and will be, second to none.

This needs highly skilled bankers, technology, the help of the investment bank behind us. But also a lot of passion, of dedication.

Products are more or less a commodity – you can buy them everywhere. But the way you sell them to your clients, the way you are helping them, deciding which solution is the best for them: that’s what it’s all about. And that’s what I want CMB to achieve.

We don’t want to be the biggest bank; we want to be the best bank, we want to be dominant in the principality and beyond.

World Finance: Now you personally joined CMB in May of 2019 – what attracted you to join the bank?

Francesco Grosoli: I’ve been working 20 years for large groups, and the appeal of joining a smaller organisation where I can definitely influence the future of the bank, and be more impactful to bringing to life an organisation that is today very well known and recognised locally. We have very strong Monégasque DNA, but with behind us a very entrepreneurial group with a pan-European footprint.

The fact that most of the decisions are taken locally, in conjunction with our group, makes us faster, more responsive. We are closer to clients, and we are capable of putting the whole organisation for one specific deal, and making it happen very quickly.

It is time today to bring something different, to differentiate ourselves from the usual private banking service that is provided by our competitors.

That’s what we can achieve, and that’s what we will bring them in the next four years.

World Finance: Francesco, thank you very much.

Francesco Grosoli: Thank you.