LeapRate interview… Marco Mottadelli, Head of Global Brokerage at the Fineco sat down with us to talk about the history behind the Italian bank’s business model, its innovative approach and its significance for the European scene.
LR: Hi Marco and thank you for joining LeapRate today. Could you first tell us a bit about yourself and your professional background?
Marco: I have been at Fineco almost since the founding of the company. The bank then was just a small startup dedicated to providing outstanding service in trading, investing and banking. The bank has grown into one of the biggest fintechs in Europe – working with more than 1.4 million clients. I’ve been able to grow with the bank and now I’m in charge of the global brokerage services and the bank’s international business.
LR: Could you tell us more about Fineco and the people behind it?
Marco: Fineco is one of the most exciting companies in the European landscape because it’s perfectly well positioned to exploit the macro trends of digitalization. Fineco has a fintech business model but with almost 20 years of history which creates the best combination of cutting edge innovation and solidity of the balance sheet. The company is driven by high-quality top and middle management, which is practically the same since its inception. Those peculiar aspects allowed the bank to mature a profound knowledge in creating a business from scratch and bring to outstanding quality and economic sustainability levels. Startup mindset + high-quality management + manic about details + healthy personal and professional balance lifestyle are the secrets that brought Fineco to a new dimension of growth.
LR: What sets Fineco apart from the others FinTech banks?
Marco: We have $99 billion in total financial assets with a CET1 ratio of 26,5% and $324 million of net income. FinecoBank is one of the most solid and well-capitalized firms in Europe and one of the most profitable fintech banks. Our business model is highly sustainable, allowing us to cover investment and costs with a cost-income ratio which is one of the lowest in the arena. I believe Fineco is the only fintech able to pay a 5% dividend to its shareholders.
LR: How has Fineco been managing through this challenging period of global uncertainty around the COVID-19 pandemic? What lessons have you learned in this period of unprecedented market volatility?
Marco: For Fineco, the pandemic was an incredibly valuable confirmation of our business model and strategy. Fineco has always believed in in-house development for our core service model. Even with the rise of outsourcing, APIs and cloud services, we have maintained a strong internal team. We know this is the only way to provide outstanding and reliable quality services to clients. More than 20% of our employees are developers and all our trading services and platforms are fully developed and managed internally.
Our consistent investment in technology and innovation – which didn’t waver during the 2019 sag in volatility – is the backbone of the robust and reliable technical infrastructure that allowed Fineco to face last year’s unprecedented challenges without disruption.
LR: What steps has Fineco been taking to address the myriad concerns of clients, employees and partners around safety, platform stability and risk mitigation?
Marco: The pandemic has touched everyone. I believe it will take years for society to fully process the mental, physical and emotional impact of an event that transformed lives for two years and killed millions.
Amidst this sadness, I see two changes that will help the world emerge stronger. First the vaccine drive proved the world’s resilience to adapt and react to situations of critical importance. And secondly consumers have become far more comfortable choosing a digital provider. We at Fineco doubled our rate of client acquisition during the pandemic. The flexibility of our employees – who already could work remotely before COVID – was a key part of that success.
LR: Any new company offerings you want to share with us?
Marco: If you open an account with Fineco now you can get 100 free trades (equivalent to around £300 of free commission). If you transfer your stock & share ISA there will be no platform fee for the rest of the fiscal year. Even next year, after the offer ends, fees will top out at 0.25% – one of the most competitive prices on the market.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.