Complexity and trust the words for financial advisor training

The current Italian social and economic context is characterised by profound structural changes and a high sense of uncertainty, elements that shape not only individual choices but also the role of financial advice and planning. Efpa Meeting 2025, being held in Florence (at the Teatro del Maggio Fiorentino, pictured) opened with a discussion on the theme Scenarios of the New Time, in which Nicola Ardente, President of Efpa Italia, and Giorgio De Rita, Secretary General of Censis, debated.

De Rita emphasised four social processes of transformation. First of all, there is the issue of individual social positioning: 'Historically,' De Rita explained, 'social positioning was defined by collective belonging: being a 'university professor,' 'journalist,' or 'trade unionist'. Today, this sense of belonging to a group or class has crumbled. Positioning is now determined by personal identity. Identity is an individual fact, based on culture, family of origin and educational background, which explains the chase to obtain special skills such as yoga or a master's degree in photography. This affirmation of personal identity leads to the disintegration of other forms of belonging, as demonstrated by the collapse of political participation (today less than half of Italians vote, a fact unthinkable 20 years ago)'. A second trend identified is the drift towards the irrational. 'We are witnessing a disenchantment with the rational dimension,' explains De Rita. 'After a long history in which science and rationality charted the course, today there is growing disillusionment, clearly perceived during the pandemic, where more and more people, even those with a high cultural level, express distrust in the official narrative.

Turning to more financial-related issues, De Rita emphasised the role of savings as a safety net: 'Saving,' he said, 'has become a fundamental social process and, subsequently, an economic factor. It is a process of reassurance and positioning. Faced with structural uncertainties (Covid, war, energy crises), Italians build a 'protection network' by accumulating savings. Although it is an action dictated by a desire for security, saving is not merely accumulation; for almost 80% of Italians it also serves as a basis for the realisation of a future project (such as a business venture, a trip, the purchase of an asset). Saving is defined as an indispensable propensity for Italians'. Finally, in the imaginative tradition of Censis, De Rita points out 'social flotation' as the fourth process of change. "This tendency," he explains, "implies 'staying there to try to resist'. The motto is: "better to float than to sink," adapting and combining various factors. Although this resilience is a structural characteristic of the country and enables it to cope with crises, the problem is that if you float you go nowhere. Floating indicates a dormancy and a lack of breath towards the future, and it became evident after the inflationary flare-up some three years ago. Today, floating and resisting are no longer enough; direction and forward projection are needed.

These transformation processes, it is recalled, centred on the individual dimension and personal adaptation, risk causing the country's structural problems to be neglected. The individualist approach can become an alibi for not collectively addressing crucial issues such as the uncontrolled public debt (whose growth rate is double that of GDP over the last 30 years), demographic dynamics (ageing) and the sustainability of investments in welfare and social security. Only a more community-oriented attitude will solve these problems. However, there is also a 'seed of positive reading': Italians are becoming aware that it is essential to prepare for the future, extending their vision over time.

In this sense, Nicola Ardente, recalls two terms as a delivery for the future: complexity and trust. In this vein, Ardente recalls the social role of financial advice. The advisor's profession is complicated because of the many elements of uncertainty. "The main difficulty lies in making savers make the transition from the initial savings phase to the investment phase, which necessarily introduces an element of risk. Savers, driven by uncertainty, tend to put up their defences and stop at the first stage. To overcome this barrier, competence is crucial. Advisors must be prepared both from a technical-financial and communicative point of view. It is essential to make wealth planning projects usable for the client, mitigating the inevitable information asymmetry. The relationship of trust established with a serious and well-prepared wealth advisor helps limit uncertainties, even if systemic risk remains. The ultimate goal of advice is to gain trust'.