24/08/2001
by Elena Balzani

At the end of the season, the art market is registering positive balances. The fair Art Basel ended in June and the official press releases speak of "excellent sales in all the price categories, from the editions with prices below CHF 1000 ($ 602,150, € 659,600) to the museum masterpieces worth millions of francs." Furthermore, according to the statements of many gallerists, a new generation of collectors is growing. The Art Advisory services offered by numerous Italian banking institutions turn to the new collectors, as to the established collectors. Among these is the Credito Italiano. Founded in 1870 as Banca di Genova, it remained under the control of state-owned holding company IRI until December 1993 when it was privatised. Today the Credito Italiano is one of the banks that make up the Gruppo UniCredito Italiano, the new banking group created last year on the 23^rd October from the union of Rolo Banca 1473, Cariverona, Cassa di Risparmio Torino, Cassamarca, Cassa di Risparmio di Trieste and Caritro. Gabriuszine interviewed Michele Ungaro, in charge of the operative marketing of the Private Banking of Credito Italiano, with regard to the Art Advisory service.

Elena Balzani: When was the Art Advisory service created? What was the reason?
Michele Ungaro: The Art Advisory service of the Credito Italiano was planned in 1997 and launched in 1998. It was an initiative promoted within the field of Private Banking in order to provide a 360° service to our Private clientele, among whom there are many art lovers and collectors. It is conceivable to estimate that about 10% of our clients, for example, attend auctions and buy works of art.

E.B.: What is the guideline that presides over the Art Advisory service?
M.U.: The idea is to offer an advisory service to those intending to invest in works of art, a service that also deals with the financial, fiscal and legislative problems, as in the case of real estate. Currently this service consists of introducing the investor with the structures and trustworthy experts, whose choice is the results of a careful international selection.

E.B.: What does it offer and what are the main differences with respect to the Art Advisory services offered by other Credit Institutions?
M.U.: As well as those already mentioned, there is the valuation and the estimate of the works belonging to the client. Among our characteristics, there is also the possibility to provide the client with a preferential guide at auction. In fact, we have an agreement with Christie’s auction house that provides, as well as the estimation and valuation services, certain bureaucratic privileges at auction. For the last three years the classic preview of the Italian spring and autumn auctions has been organised by Christie’s with our collaboration or "sponsorship". During these previews the experts of Christie’s in the various fields are available for the guests who have been invited either by the auction house or by the Private Banking of the Credito Italiano.

E.B.: How does the service operate?
M.U.: Like all the Italian and foreign banks we work with external consultants, we resort to a network of experts who operate within auction houses or as antique dealers.

E.B.: What is the minimum requirement of capital necessary in order to be able to take advantage of the Art Advisory service offered by the UniCredito Italiano?
M.U.: The amount of 2 billion lire ($ 550,200, € 516,460) represents the personal estate (with the usual exceptions) necessary to be able to take advantage of the Private Banking services of the UniCredito Italiano among which is included that of Art Advisory.

E.B.: Can you give some indication of the number of your private clients who have taken advantage of the Art Advisory services?
M.U.: Taking into consideration that our private clients are about 17.000 people, about 500-600 people have consulted the Art Advisory, while the number of clients who benefited from the auction services is certainly higher.

E.B.: Which are the most requested services?
M.U.: Among the most requested services there is certainly the demand for the expertise and estimates of works of art that belong to family estates or that are received as inheritance

E.B.: What is the advantage for the Bank?
M.U.: There is no direct economic advantage derived from the Art Advisory service but, as already mentioned, this service completes the range of our offers aimed at the management of personal estates. The management policy must take into consideration a professional attention for the part of estates invested or that could be potentially invested in works of art.

E.B.: Are there any development plans in the pipeline?
M.U.: We are evaluating the conditions necessary to establish a service of Art Advisors available through a team of experts within the Bank. In this case we could bring proposals forward to our clients.

E.B.: Are there only private clients among those who take advantage of the Art Advisory services or are there also firms?
M.U.: The Private Banking services of the UniCredito Italiano are aimed exclusively at private clients.

E.B.: In your opinion, why do your clients acquire a work of art: security, speculation or pleasure?
M.U.: Fundamentally the acquisition of a work of art is aimed at its enjoyment and complementarily at the protection of the estate. At times the factors of priority are inverted, but very rarely the aim of a non-professional is speculation.