The mortgage brokerage market - Italy (2024)

1.2 The global market

The value of the global credit brokerage market shows steady growth from **** to ****, with a compound annual growth rate (***) investing, use of market data analytics, and emphasis on cross-border trading.

Global Credit Brokerage Market Value World, ****-****, in US$ million MondorIntelligence

The projected growth of the securities and stockbroking services markets is expected to be supported by the growing popularity of online trading platforms. These platforms, in the form of websites or software programs, provide a digital interface for buying and selling securities over the Internet. Securities and exchange brokerage services offer customers a secure online environment to transact in stocks, bonds, and other securities, often at reduced rates, eliminating the need to deal directly with a broker or securities dealer.

1.3 The European market

The European credit mediation market shows a CAGR of *.**%. Starting from a value of $*.** billion in ****, the market reaches $**.** billion in ****, a total increase of **%.

European Credit Mediation Market Value Europe, ****-****, in US$ billion ResearchAndMarkets

The value of the European credit mediation market continues to grow, supported by strong markets in the United Kingdom, France, and Germany, and the increasing inclusion of other regions such as the Benelux and Nordic countries. This increase is driven by increased demand for innovative financial solutions and the market's ability to provide substantial financing in various sectors(***). The outlook for **** indicates an increase in transactions in the M&A sector, despite economic and geopolitical uncertainties. This suggests a return of confidence in the market, with significant transactions attracting the interest of both sponsors and lenders(***).

1.4 The Italian market

The Italian credit mediation market is expected to show steady growth from **** to **** to reach *.** billion, marking an overall increase of ** percent. The compound annual growth rate is assumed to be the same as the European rate of *.**%.

Italian credit brokerage market value Italy, ****-****, in € billion Company Register, Businesscoot elaboration

The credit mediation industry in Italy is supported by a series of regulatory reforms and a change in consumer behavior, who now prefer more specialized and personalized advice for their complex financial needs. This has led to an increase in the market share held by credit brokers, who now handle ** percent of loan applications(***).

1.5 Inflationary trend suffered by the sector post Covid-19

Price trends for fixed- and variable-rate mortgages in Italy from **** to **** show an increasing trend. Fixed-rate mortgages start from a value of *.**% at the end of **** and show an initial decline to *.*% in mid-****. From there, rates begin to rise steadily, reaching *.* percent at the end of **** and peaking at *.** percent in the third quarter of ****, before falling slightly to *.** percent in mid-****.

For variable-rate mortgages, rates start at *.**% at the end of ****, gradually decline to *.**% at the end of ****, and then begin to rise. From a rate of *.**% at the end of ****, rates rise rapidly, reaching *.**% in the third quarter of **** and continuing to rise to a high of *.**% in the first quarter of ****, with a slight decline to *.**% in mid-****.

Price trends for fixed- and variable-rate mortgages Italy, ****-****, in % Bank of Italy, Businesscoot elaboration

In summary, while fixed and variable rates both show an upward trend over the period under consideration, variable-rate mortgages show a more pronounced increase, particularly evident from ****.

2.1 Overview of demand

Istat published in **** a report on the housing market in Italy in the first quarter of that year.

In Italy, mortgages are broken down by region as follows:

The geographical distribution of mortgages in Italy shows a significant disparity between regions. The Northwest records the highest value with **,*** mortgages, followed by the Northeast with **,***. The Center stands at **,*** mortgages, while the South and Islands show significantly lower values, with **,*** and *,*** mortgages, respectively. This distribution suggests greater activity in the housing market in northern regions than in the rest of the country.

Source: ****

Real estate purchases and sales in Italy showed a negative trend in the period between **** and ****. After a modest increase of *.* percent in the first quarter of ****, the data showed gradual declines, culminating in a **.* percent decrease in the first quarter of **** compared to the same period of the previous year. Thereafter, a reduction in the fall is observed, with the second quarter of **** at -**.*% and the third quarter of **** at -*.*%. This indicates a possible stabilization or recovery of the market after the initial sharp decline.

Change in real estate purchases and sales compared to the same period in the previous year Italy, ****-****, in % Istat

The ...

2.2 The profile of mortgage applicants

At the end of the year ****, the credit mediation company ** Max published a report with the most important data regarding the credit mediation market. Among them, a profile of those who turn to credit mediation to apply for a mortgage also emerges. The most important data are summarized as follows:

Typologie des demandeurs Italie, ****, en % Source: ****

Among the percentage of singles who use a broker for a mortgage(***), the division by gender is as follows:

Division par sexe des demandeurs de prêts Italie, ****, en % Source: ****

Age of applicants:

Âge des demandeurs Italie, ****, en % Source: ****

According to the report, among these age groups, there was the largest increase in the **-** segment, with +*.*% year-on-year.

The work of mortgage applicants:

Typologie de contrat des demandeurs de prêts Italie, ****, en % Source: ****

Type of purchase:

According to the **Max report, **.* percent of Italians take out a loan for the purchase of their first home, while only *.* percent are for the purchase of their second home.

2.3 Notoriety of the figure of the financial broker

A ****OAM survey highlighted Italian consumers' habits of services offered by agents in financial activity. The survey used a sample of *** individuals with incomes ranging from * to more than ***,*** euros, varying levels of education (***) occupations.

The survey unveiled the level of respondents' knowledge of the Financial Business Agent:

Level of Knowledge of the Agent in Financial Activity Italy, ****-**** comparison, (***) OAM

it turns out that the level of knowledge is increasing, albeit slightly.

The study also investigated the products for which respondents were supported by an Agent in Financial Activity with the following results:

Survey responses, "Please indicate for which of the following products you have ever been supported by an Agent in Financial Activity in the past." Italy, ****, (***). OAM

2.4 Online search trends

Between July **** and June ****, online searches for mortgages and loans in Italy show varying trends with some interesting trends.

For mortgages, a strong fluctuation is observed. After an initial peak of ** in September ****, the index reaches a high of **.* in January ****, followed by fluctuations with another peak of **.** in January ****. However, the values show a downward trend around June ****, stabilizing around **.*.

For loans, the trend is similarly dynamic. After a peak of **.** in September ****, the interest rate declines slightly, reaching a low of ** in December ****. From January ****, the index rises steadily, peaking at **.** in January ****. Thereafter, the index remains relatively high, stabilizing around **.* in June ****.

Comparing the two series, we see that interest for loans is generally higher than for mortgages. However, both show a tendency to peak around the months of January, followed by fluctuations. Interest for loans tends to be more stable than that for mortgages, which shows greater fluctuations over the period analyzed.

*The numbers represent search interest relative to the highest point on the graph in relation to the region and period shown. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other ...

3.1 The market structure

In ****, the situation of lists of financial agents and brokers in Italy shows interesting changes from ****.

Source: ****

*AGENTS P.F. (***) represent the numbers of financial agents registered as individuals or legal entities. MED P.G. refers to credit brokers as legal entities, while AGENTS IP P.F. and AGENTS IP P.G. indicate payment institution agents as individuals and legal entities, respectively.

Total membership increased slightly by * percent, from *,*** to *,***. Operating agents saw a similar increase of * percent, from *,*** to *,***, while non-operating agents decreased by * percent, from *** to ***. The number of suspended agents increased from * to *. As for employees, there was a * percent growth, from **,*** to *,***. Agents operating as corporations increased by * percent, while partnerships decreased by ** percent. Canceled agents experienced a significant **% increase, rising from *,*** to **,***. Cancellations at the request of a party or ex officio increased by * percent, while those with sanctioning measures under Article ***-duodecies, co.* and co.* increased by ** percent and ** percent, respectively. These data indicate an overall stability in the number of operational and enrolled agents, accompanied by a decrease in non-operational agents and an increase in deletions and collaborators.

Size of credit brokers:

The different sizes according to which brokerage firms are divided are ...

3.2 The main players in the industry

The main companies in the industry are:

Kiron Partner: It is one of the leading credit brokerage companies in Italy, part of the Tecnocasa Group. With more than ** years of experience in the industry, Kiron Partner offers a wide range of consulting services for mortgages, personal loans and insurance. Among the services offered, Kiron Partner is dedicated to helping clients find the ideal mortgage to purchase a home, proposing solutions that take into account the best opportunities offered by the market. In addition, it offers advice on choosing personal loans of up to **,*** euros, with variable durations from ** to *** months, and insurance policies designed to guarantee serenity and protection for the family(***).

Euroansa: It is an Italian credit brokerage company founded in ****, which stands out for its mission to provide optimal financial solutions for both individuals and businesses. With a network of about *** employees and more than *** agencies throughout the country, Euroansa offers a full range of services including mortgages, personal loans, cessione del quinto and insurance. In ****, Euroansa became an official partner of Immobiliare.it, one of the leading real estate portals in Italy, which acquired a ** percent stake in the company. This partnership has enabled Euroansa to further expand ...

3.3 Geographic distribution of credit brokers

Credit brokers must take an aptitude exam in order to then be registered on theOAM List and then practice. Credit brokers, by rule, carry out their activities without being linked to any of the parties by relationships that could compromise their independence

Geographic distribution of credit brokers:

Concentration of credit brokers Italy, ****, in % Source: ****

According to theOAM 's **** report, there are *** companies registered in the List of Brokers. Data on the geographic distribution of credit brokers in Italy show a strong concentration in Lombardy, which has *** brokers, followed by Lazio with **. In contrast, regions such as Valle d'Aosta, Trentino-Alto Adige, Abruzzo, Molise and Basilicata have an extremely limited presence or none at all of credit brokers. Veneto and Campania have ** and ** brokers, respectively, demonstrating a more balanced distribution in the Northeast and South. Tuscany and Emilia-Romagna both have ** mediators, while regions such as Piedmont and Sicily have lower numbers with ** and ** mediators respectively. The presence of mediators is generally low in smaller and less populous regions such as Liguria, Friuli-Venezia Giulia, Umbria, Calabria, Puglia, Sardinia and Basilicata. The companies are divided as follows:

4.1 Products offered by the credit brokerage market

An important feature of the credit intermediary is that he or she carries out his or her activities without tying himself or herself to any of the parties involved. In this way, the broker's independence is preserved. Therefore, no relationship of collaboration, representation or dependence can exist between the parties. The activities that a credit mediator regularly does include:

Consulting; Preliminary investigation of loan applications; Formulation and submission of credit applications to lenders; Negotiations with potential lenders about disbursement terms and economic conditions of financing

Consulting:

The mediator's counseling activities involve a number of important components. In dealing with the client, the mediator must be able to identify and analyze the client's needs from a financial perspective. The next step is to find, if possible, the best possible financing, always in line with the client's needs. It is up to the broker to thoroughly and correctly inform and describe the different financial products that the credit market offers.

Preliminary investigation of loan applications:

This is the process in which a bank or financial institution evaluates an applicant's ability to obtain a loan. It begins with the collection of necessary documentation, such as identity documents, pay stubs and tax returns. Next, a ...

4.2 Enterprise products

Credit mediation and all related activities (***) are not only available are for particulars, but an important part is also reserved for companies. In fact, all brokerage and especially consulting activities for corporations are an important part of the market. In current parlance, this segment is called corporate.

According to OAM's **** report, more than ** percent of intermediation is done by employees of micro and small brokerage firms; the exception is corporate personal loans, which are mediated exclusively by employees of small companies.

Typologie d'entreprises ciblés pour le corporate Italie, ****, en % Source: ****

The **** data on the type of companies suitable for corporate in Italy show a clear predominance of micro enterprises in almost all categories. Micro enterprises account for ** percent of corporate guarantees, ** percent of corporate personal loans, and ** percent of corporate targeted loans. However, they make up only ** percent of corporate loans, where small businesses have a significant share of ** percent. Small businesses are mainly present in corporate loans (***). Large enterprises are less represented: they make up * percent of corporate loans, ** percent of corporate personal loans, and only * percent of corporate targeted loans, with no presence in corporate guarantees.

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4.3 Price trends

For the individual, as for businesses, it is essential to understand interest rates at the time of a loan to know what is most convenient. There are several rates to consider when applying.

The APR is the main transparency tool in consumer credit agreements. It is an EU-harmonized index that in consumer credit transactions represents the total cost of credit borne by the consumer, including interest and all other charges to be incurred in using the credit. APR is expressed as a percentage of credit granted and on an annual basis.

The TAN indicates the interest rate(***). Therefore, a loan with a TAN of zero could have an APR well above zero. The TAN is the most variable indicator, which can change every *, * or * months depending on the spread set by the European Central Bank.

The TEGM indicates the average value of the rate actually applied by the banking and financial system to homogeneous categories of credit transactions (***) in the previous second quarter. In accordance with the law, the rate calculation must take into account fees, remuneration for any reason and expenses, excluding those for taxes and fees, related to the provision of credit. The surveyed rates are published quarterly in ...

4.4 Real estate prices

There are two definitions to keep in mind:

Newdwellings: newly built or existing dwellings renovated and sold by construction companies.

Existing housing: existing housing sold by households or other institutional sectors.

Istat in a published **** report on housing prices highlights the evolution of new and existing housing prices, keeping in mind that the **** data refer to the first quarter:

Variations des prix de l'immobilier Italie, ****-****, en % Source: ****

Changes in real estate prices in Italy from **** to **** show two distinct trends for new and existing housing.

For new housing, prices begin with a *.* percent increase in ****, but experience negative fluctuations in subsequent years, reaching their lowest point in **** with a *.* percent decline. From ****, prices begin to rise again, registering more substantial growth from **** (***) and culminating in a *.* percent increase in ****. In **** and ****, growth continues but at a slightly slower pace of *.* percent and *.* percent, respectively.

Existing housing, on the other hand, shows a more volatile trend. After a slight increase of *.* percent in ****, prices fall significantly, touching a decline of *.* percent in ****. From ****, the situation begins to stabilize, with a slight increase in **** (***).

In summary, while new housing prices show more robust and steady growth in recent years, existing housing prices ...

5.1 General overview

Since the housing crisis of ****, regulation has greatly affected the credit broker profession. Indeed, on the one hand the Basel III accords published on December **, ****, imposed limits on risk-taking by banks, leading to the withdrawal of specialized banks from the brokerage segment.

On the other hand, national regulations follow European directives, the most relevant of which include:

Ministry of Economy and Finance Decree No. ** of April *, **** (***) Legislative Decree April **, **** , No. ** (***) Ministry of Economy and Finance Decree No. ** of January **, **** (***)

Prohibitions of mediators:

Brokers are prohibited from concluding contracts and carrying out, on behalf of banks or financial intermediaries, the provision of financing and any form of payment or collection of cash, other means of payment or securities.

Financial intermediaries are entities, other than banks, which are permitted by national law to provide credit on a professional basis to the public within the territory of the Republic. These are entities whose regulations are not harmonized at the European level and therefore, except in the case of entities controlled by EU banks(***), mutual recognition is not permitted in the EU.

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5.2 The Cartabia reform of June 30, 2023

The Cartabia reform, which went into effect on June **, ****, made significant changes to civil and commercial mediation in Italy. Here are the main changes introduced:

Powers of the Judge: The new Article *c of Legislative Decree **/**** allows the judge to order an attempt at mediation during the trial, including at the appellate stage, based on the nature of the case, the state of the investigation and the behavior of the parties. Mediation ordered by the judge becomes a procedural requirement of the court application, and failure to do so may lead to the improbability of the application. AssistedNegotiation: The reform extends assisted negotiation to unmarried couples and labor disputes. It is also provided that assisted negotiation can be conducted telematically, and legal aid is introduced for indigent parties who request it. Telematic Mediation: Digitization becomes a rule in mediation. Every document in the proceedings can be created, signed, and sent via telematic means, such as certified e-mail. Meetings can take place via remote audiovisual links, ensuring mutual visibility and audibility of participants. At the end of the process, the mediator creates a single digital document containing the minutes and any agreement, which is then sent to the parties for digital signature. LegalAid: ...

6.1 Segmentation

• Kìron Partner
• Euroansa
• Auxilia Finance
• Più Mutui Casa
• Facile.it Mediazione Creditizia
• Credipass
• Signor Prestito
• Nsa
• We Unit Group
• Affida