The fintech in Italy it is always attracting new investments. L'”FinTech survey in the Italian financial system – 2023” conducted by Bank of Italyestimate in 901 million for the two-year period 2023-2024 there spending on investments in innovative technologieswhile in the two-year period 2021-2022 it was even to 600 million euros. Are expected further investments of 380 million starting from 2025, until the projects are completed. The total flow of investments associated with the projects surveyed, reports Bankitalia, is 1.88 billion euros. In the two-year period 2023-2024, spending increased 3.8 times compared to 2017-2018 although “the process of digital transformation of the financial system, although expanding, is quantitatively limited and polarized“But let’s see better what the document says.
How the Bankitalia survey on fintech in Italy is structured
The salient points of the fourth Fintech fact-finding survey carried out during 2023 are the following:
Participation and Coverage: The investigation involves the entire Italian banking system and 67 non-banking intermediaries (including financial companies, IPs, IMELs, SGRs and SIMs). The participation rate was high, with 96.5% overall participation and 97.0% coverage in terms of assets for banks alone.
Investments and Technologies: The first part of the work examines the dynamics of investments in the fintech sector, the technologies adopted and the network of collaborations between intermediaries and companies providing IT and technological services.
Effects on Intermediaries: The second part analyzes the effects of these investments on the organization of intermediaries, their business model and perceived risks.
Specific Fintech Projects: The third and fourth sections are dedicated to fintech projects relevant to open banking and the fight against money laundering.
The full document is available for consultation here. This is an important resource for understanding the state of technological innovation in the Italian financial sector.
What the Bankitalia survey says (in summary) about fintech
Investments in the fintech sector. as mentioned above, they showed significant growth, reaching a total of 1.88 billion euros, with positive expectations for the future. This increase in investment is reflected in the progress and adoption of key technologies that are shaping the fintech landscape. Between these, web-mobile platforms stood out, attracting 20.5% of investments. Closely followed by artificial intelligence (AI), which captured 16.5% of investments, and Application Programming Interfaces (APIs)who obtained 14.9%.
Focusing on core business areas, financial intermediation emerges as the most financed sector, absorbing 43.7% of total investments. Payments are not far behind, accounting for 39.4% of investments, highlighting the growing importance of these two areas in the fintech context.
Innovations are particularly evident in some sectors. In the world of payments, the Instant Payments and integration into digital wallets represent dominant trends, reflecting a shift towards faster and more integrated transactions. In the’financial intermediation, however, the focus is on the digitalisation and automation of credit processesmarking a significant step towards operational efficiency and reduced processing times.
On the operational front, the adoption of these technologies and innovation in business models present both opportunities and challenges. A reduction in fraud is among the most obvious benefits, thanks to the use of advanced technological solutions. However, this shift towards ICT outsourcing also brings with it an increase in risks related to security and data management, underlining the need for a balance between innovation and operational security in the fintech sector.
Focus on fintech startups in Italy
The 2023 FinTech Survey in the Italian Financial System conducted by the Bank of Italy also offers an in-depth overview on fintech startups present in the country, highlighting its growing importance. During the year, there was a increase in the number of fintech startups, which have brought innovation and change to the financial sector thanks to the adoption of advanced technological solutions.
These startups operate in a variety of industries. The presence in the field of digital payments, where many of them develop e-wallets, payment applications and money transfer services. No less relevant is their commitment in the sector lending and loans, with proposals ranging from online loans to alternative financing solutions. Blockchain technology and cryptocurrencies they represent another area of strong growth, demonstrating the interest and investment in these innovative technologies. Finally, some startups stand out in the digital asset management sector, offering automated financial advisory services, also known as robo-advisory.
Collaborations with traditional banks and other financial institutions are frequent, however, these startups are also facing significant challenges. These include regulation, competition and building trust with customers represent the main obstacles. Despite the difficulties, fintech startups continue to be a driver of technological innovation for the Italian financial sector, introducing new business models and services that foreshadow the future of the sector.
Tags: Fintech Italy boom investments technology focus platforms
