Relationship Capital
Relationship capital is defined as the set of all relationships - market relationships, power relationships and co-operation - established between firms, institutions and people that stem from a strong sense of belonging and a highly developed capacity of co-operation typical of culturally similar people and institutions.
To build deep relationships with a large number of partners is difficult. Therefore, a company has to find the right balance between breadth and depth of partnerships, i.e. between reaching out to the largest group of partners versus deepening the collaboration with a limited group of them.
Strategic relationship with key suppliers
In its development, the company has created a network management model in which every link in the production chain exploits the best skills on the market.
The "make it or buy it" logic, represents a constant in the development of the company. The operating structures of the company are inter-connected with sub-suppliers and with consultants. This creates a complex corporate system which can have access to a greater variety of resources and skills that could not otherwise be developed, in an autonomous and isolated manner, quickly enough for the “time to market” dictated by the main competitors in the financial world.
MIFL has developed strong relationships with a number of suitable partners. This allows the company to have access to a broader range of resources in the financial market. The company has adopted with this network of outsourcers, a sophisticated framework including a set of rules and procedures, that supports the relationship and allows MIFL to monitor the quality of the service received on an ongoing basis.
The product development process
MIFL has developed a unique approach in engaging with its partners to protect the confidentiality of Mediolanum intellectual property in relation to new products. We have also introduced some general guidelines to govern the mutual exchange of ideas and technical know-how that is necessary during the research and development process. The company’s objective in doing this is to preserve the Intellectual Property (IP) and technical know-how of MIFL, both during and after the research collaboration, whether we successfully develop a product or not.
This kind of confidentiality agreement, which protects the innovative part of the product development process, is widespread in particular in the technology industry but it could be considered innovative in the financial world of asset management.
Strategic relationship with our Distributors
Distributors play a vital role in order to allow MIFL to understand client needs. Therefore, it is pivotal to establish and to maintain a strong relationship with our Distributors. A key source of client feedback is the information we gather from our clients themselves, and from their representatives, the distributors.
Through the system of Family Bankers™ within our Group’s Distributors, we benefit from a large sales force plus we have a dedicated institutional clients sales force. By establishing and maintaining a dedicated local presence we develop long term relationships and outstanding local knowledge. Our sales led approach enables us to deliver returns to our client’s designed to meet their needs.
MIFL is always keen to be aware of the different market outlooks and scenarios and to share the outcomes with our Distributors in order to match market trends with client needs. Over many years, MIFL has built a loyal and established customer base in Italy, Spain and Germany.
