Private banks in Italy are increasingly offering substantial upfront payments to attract senior bankers who manage ultra-high-net-worth clients, fueling intense competition for talent amid a boom in the country’s wealth management sector. This trend marks a departure from traditional private banking practices in Italy, where such large signing bonuses were previously uncommon.

Alberica Brivio Sforza, head of private banking at Lombard Odier Italy, highlighted a recent example in which BNP Paribas outbid her firm by offering a team of bankers a contract that could deliver tens of millions of euros. This arrangement combines a percentage of the assets the bankers bring in upfront with a significant share of future revenues generated by their portfolios. Industry insiders describe this as a rare opportunity for bankers to convert years of work into immediate financial gain.

The competitive packages primarily take the form of “tied-agent” contracts, which allow bankers to operate as self-employed advisers affiliated with a single institution. These contracts have been common in Italy’s mass affluent market but have only recently penetrated the upper echelons of private banking, traditionally dominated by full-time employees. Bankers generally commit to staying with the institution for three to five years or repay part of the upfront payment if they depart early.

This aggressive recruitment approach has led to internal divisions within Italy’s private banking community. Some senior executives warn that the tactic resembles “buying books” of clients, an unsustainable practice that may backfire financially. A prominent wealth management executive cautioned that while these banks seek asset growth, they risk non-profitable expansion due to excessive acquisition costs.

The surge in the ultra-high-net-worth segment is linked to the wave of private equity activity in Italy since the Eurozone crisis and former European Central Bank president Mario Draghi’s 2012 pledge to do “whatever it takes” to preserve the euro. This stability encouraged private equity firms to invest heavily in Italy’s small and medium-sized family businesses, generating liquidity events that transformed many entrepreneurs into high-net-worth clients for private bankers.

Between 2013 and 2025, approximately 3,500 deals worth around €362 billion were completed, with projections of nearly 3,900 transactions totaling almost €350 billion over the following decade. Italy’s private banking assets reached a record €1.4 trillion at the end of 2025, twice the amount from a decade earlier, driven in part by strong mid-market family enterprises.

International banks such as Goldman Sachs, JPMorgan Chase, and UBS dominate Italy’s ultra-high-net-worth segment, whereas Morgan Stanley exited the market after selling its private wealth division covering Italy in 2013. Smaller European and Italian banks have increasingly relied on tied-agent contracts to attract talent in this crowded environment, despite some large firms rejecting such practices to maintain long-term client-banker relationships.

Recent banking sector consolidations, including Monte dei Paschi di Siena’s acquisition of Milan-based Mediobanca, have intensified talent poaching. Rival institutions like BNP Paribas, Deutsche Bank, and Intesa Sanpaolo have successfully recruited experienced Mediobanca bankers as tied agents, particularly those specializing in ultra-high-net-worth clients.

Industry observers caution that while tied-agent models account for over 60 percent of Italian private banking personnel, the majority serve mass affluent clients where fee structures are more favorable. In contrast, ultra-high-net-worth clients often negotiate lower fees and require more customized services, reducing profitability for banks under the tied-agent framework.

Alberica Brivio Sforza expressed skepticism about the sustainability of this recruitment trend for the high-net-worth segment, predicting that banks may ultimately lose money on these agreements due to the high payouts involved. The ongoing talent war reflects broader shifts in Italy’s wealth management sector but raises questions about the long-term economics of the current approach.