In today’s rapidly evolving financial landscape, the development of portable anti-fraud solutions is becoming more critical than ever. We are moving toward creating a mobile solution that will not only certify a customer’s identity but also help streamline the entire credit application process. The goal is to create a seamless flow where customers can access documents typically required during credit applications, thereby eliminating information asymmetry. This approach enables customers to validate their position upfront, easing the interaction with credit institutions and enhancing the user experience.

Through digitization, all interactions within the credit application process will be simplified, allowing third parties to interface with this app more easily. The solution can be white-labeled, meaning it can be customized for various financial institutions, making it an invaluable tool for onboarding new users and automating credit approval decisions. With a single touchpoint, customers will be able to access all necessary documents, including those from their tax drawers, thereby improving recognition, anti-fraud verification, and the management of personal data. This shift is a move toward digital wallets and digital identities, setting the stage for a more efficient, secure, and user-friendly financial ecosystem.

Navigating the new regulatory landscape: DORA and MiCaR

While technological advancements push the financial sector toward increased digitization, new regulations are also shaping the future of financial services. Two key frameworks, DORA (Digital Operational Resilience Act) and MiCaR (Markets in Crypto-Assets Regulation), represent a pivotal shift in how the industry balances resilience and cybersecurity, as well as the regulation of crypto assets.

DORA aims to ensure that financial institutions remain operationally resilient in the face of increasing cyber threats, while MiCaR focuses on bringing crypto assets under a regulated framework. These initiatives, overseen by bodies such as OAM (Organismo Agenti e Mediatori), the credit market control authority in Italy, aim to create a safer, more regulated financial environment.

This evolving context raises important questions: What is the current market maturity for services and solutions around digital wallets and digital identities in Italy? And how can simplified processes for anti-fraud and user onboarding help facilitate credit applications in this changing environment?

Digital Wallet and Identity Market in Italy

In Italy, the adoption of digital wallets and identities has grown in recent years, but there remains significant room for improvement, particularly when it comes to integrating these technologies into financial services. Simplified anti-fraud measures and onboarding processes are crucial during credit applications, as they provide a more user-friendly experience while ensuring security. The ability to easily verify identity and access relevant documents through a single app is a game changer for both consumers and institutions. By leveraging digital wallets and identities, institutions can reduce the friction associated with credit applications and onboarding, making these processes faster and more secure.

However, as the market evolves, financial institutions must keep pace with regulatory updates, especially with new European mandates on cybersecurity, resilience, and crypto asset regulation. These regulations not only aim to protect consumers but also compel industry players to innovate, making it essential to focus on the priorities that matter most to both users and institutions.

Priorities for industry players: cybersecurity, resilience, and crypto regulation

The anti-fraud market is in a state of rapid evolution, driven by both technological advancements and regulatory updates across Europe. As regulations like DORA and MiCaR come into effect, industry players must prioritize strengthening cybersecurity measures, enhancing operational resilience, and adhering to new crypto asset regulations.

For financial institutions and fintech companies, the challenge lies in balancing innovation with compliance. They must integrate anti-fraud measures that not only meet regulatory requirements but also enhance the user experience. In doing so, they can create a secure and frictionless environment where consumers feel confident in their digital interactions, particularly when applying for credit or managing their finances.

Simplifying processes to empower end users

In today’s fast-paced digital world, simplifying and streamlining processes is key to enhancing user experience and fostering greater financial knowledge and awareness. By digitizing and automating processes, financial institutions can remove many of the barriers that traditionally prevent consumers from accessing credit. A more straightforward and transparent process allows users to better understand their financial position, make informed decisions, and complete credit applications with ease.

Additionally, simplifying the credit application process benefits institutions by reducing operational costs and improving decision-making efficiency. As technology continues to evolve, tools like artificial intelligence and data management systems are becoming essential components of this transformation. These tools not only automate repetitive tasks but also offer insights that can improve both customer experience and institutional decision-making.

Looking ahead: the future of Financial Services

Looking to the future, the fusion of technological innovation with a new approach to digital transformation holds enormous potential. Challenger banks and traditional financial institutions alike must seize this opportunity to collaborate and enhance their services. By leveraging next-generation tools like artificial intelligence, machine learning, and advanced data management solutions, financial institutions can offer more personalized and efficient services to their customers.

For example, AI-powered fraud detection systems can quickly identify and flag suspicious activities, while machine learning algorithms can assess a customer’s creditworthiness in real time. These innovations, coupled with a focus on cybersecurity and regulatory compliance, will be critical in shaping the future of financial services.

In conclusion, the shift toward a more digitized, streamlined, and secure credit application process is not just a trend—it’s a necessity. As the financial landscape continues to evolve, institutions that embrace technological innovation, while remaining compliant with new regulations, will be best positioned to offer seamless and user-friendly services. The future of financial services lies in the ability to merge innovation with resilience, creating a secure, efficient, and accessible financial ecosystem for all.

Waiting for the fifth edition of #MilanFintechSummit (8-9 October | Allianz MiCo – www.milanfintechsummit.com), in this new episode of #UnicornTales, our column dedicated to the #Fintech Unicorn Stories, we’ll talk about the strategies for products growth together with the product and growth expert, Asya Kuznetsova.

Thanks to her experience, she will help us to better understand how a product can be the real driver to get so much success in the market to bring a company to become a unicorn. In fact, after having helped Yandex to become a Unicorn in the Education industry, Asya today is leading the product growth unit at Wise, the technology company that processes more than 118bn GBP for almost 13m customers in the last year alone.

Let’s watch the LIVE!

The fifth edition of the Milan Fintech Summit – a leading international event focused on innovation in banking and financial services – is returning to Milan. Organised and promoted by Fintech District, the international community representing Italy’s Fintech and Techfin ecosystem, and Business International, the knowledge unit of Fiera Milano, the event will reinforce Milan’s status as a key hub for innovation in Europe. The Summit aims to spotlight the Italian Fintech ecosystem, attract investments and talent, and foster business networking opportunities.

On October 8th and 9th, the Milan Fintech Summit will bring together international Fintech leaders, financial players, investors, large corporations, SMEs, institutions, associations, and European hubs for a two-day event dedicated to the latest innovation and trends in financial services.

With over 15,000 financial companies, 2,800 startups, and a rapidly growing Venture Capital ecosystem, Milan is the perfect host for this significant event. Milan boasts 41% of Italian Fintech companies, including two unicorns, and attracts 69% of investments in the Italian Fintech sector.

As part of the event, the first data from the 2024 edition of the ITALIAN FINTECH MAP will be presented. This "map", created by Fintech District and Politecnico di Milano, offers a comprehensive overview of Fintech companies operating in Italy as well as European ones with Italian roots.

Building on the success of last year’s edition, which featured over 110 Italian and international speakers, and attracted more than 1,300 attendees (of which 63% were C-level executives) from over 30 countries, the 2024 Summit aims to strengthen its position as a critical forum for discussions on the evolving trends in Fintech.

This year’s theme, “SMELLS LIKE FINTECH SPIRIT”, draws inspiration from music. Each session will be named after a famous song, with participants and speakers contributing their favourite tracks to an official playlist, created ad hoc for the Milan Fintech Summit. Music reflects the dynamic and disruptive nature of Fintech, whose solutions, when integrated across sectors, can deliver a cutting-edge customer experience.

Just as the music industry has evolved—from carrying boomboxes in the '80s to Walkmans, MP3 players in the 2000s, and now podcasts directly on our phones—Fintech is revolutionising banking, particularly in payments, which have moved from cash to P2P transfers and instant transactions via banking apps.

THE MILAN FINTECH SUMMIT LINE-UP
The 2024 Milan Fintech Summit will follow a thematic structure, with sessions named after iconic songs, making discussions more engaging by tying them to broader cultural themes. Key sessions include:
- Imagine: Exploring the future of Fintech, how services might evolve and their role in promoting social and environmental goals. An essential moment to understand the trajectory of Fintech and its sector-wide impact.
- One: Focused on Embedded Finance, this session will explore the integration of services such as payments, lending, and insurance on orchestration platforms. Speakers will emphasise the importance of creating a seamless customer experience through technology.
- Bridge Over Troubled Water: Addressing diversity and inclusion, with a particular focus on the challenges faced by women in the Fintech sector, especially in underbanked regions. It will explore ways to attract and support female talent.
- What a Wonderful World: Discussing how emerging markets can benefit from established Fintech ecosystems and vice versa, highlighting the importance of internationalisation and the value of different perspectives.
- AI Will Always Love You: A deep dive into the transformative role of Artificial Intelligence, generative AI, and Machine Learning in Fintech. The potential benefits, applications and risks of AI and how it can transform the world of finance will be discussed.

Networking opportunities will also play a crucial role in the 2024 Milan Fintech Summit, with a dedicated exhibition area open throughout the event to foster collaboration and connections between participants. An official event app will be available to facilitate meetings and interactions.

STARS ON STAGE AT THE MILAN FINTECH SUMMIT
This year’s Summit will feature an impressive lineup of international speakers, including CEOs and C-level executives from prominent companies. Notable speakers include: Alessandra Perrazzelli, Deputy General Director of the Bank of Italy; Anna Lambiase, Chairwoman of CDP Venture Capital; Mathias Wikström, CEO of Doconomy; Paolo Zaccardi, CEO of Fabrick; Enrico Mattiazzi, CEO and Founder of Fiscozen; Alberta Pelino, President of the Young Ambassadors Society and Founder of Fibi; Stefania Di Bartolomeo, CEO of Physis Investments; Silvia Attanasio, Head of Innovation at ABI; Stefano Quintarelli, Founder of Rialto VC; and Bianca Bonetti, Associate - Network & Engagement of Gyrus Capital.

For the first time in Italy: Nicolas Benady, CEO of SWAN; Carsten Höltkemeyer, CEO of Solaris; Deniz Guven, Board Member of Wamo and former Founder and CEO of Mox; Meirav Harel, Israeli Ambassador to the European Women in Payments Network (EWPN) and lecturer of the Full Blockchain & Fintech Course at Reichman University.

Additionally, Amanda Estiverne-Colas, Founder/Fractional CFO of AGE Advisors and Global Mentor for Women in Payments, will interview three prominent figures in the Fintech world: Francesca Carlesi, CEO of Revolut UK, the rapidly growing neobank now valued at $45 billion and the second-largest bank in the UK by market capitalisation; Kos Stiskin, co-founder and Vice President of Finom, a company that recently secured $54 million in a Series B funding round; and Miguel Amaro, CEO and co-founder of Coverflex, which completed the largest pre-seed funding round in Portugal.

Regulators will also have a dedicated session in the agenda, organised by Refink, focused on the topic of MiCAr. This session will feature representatives from the Bank of Italy, BaFin, Bundesbank, FMA Liechtenstein, the National Bank of Romania, Norges Bank, and the Danish Financial Supervisory Authority.

The Summit will also host the Italian finals of the Mastercard For Fintechs program, a European competition launched by the company to support Fintechs in their growth journey through privileged access to educational sessions and a series of events. On the opening day, October 8th, the top 10 Fintech finalists of the national competition will compete for two passes to the Paris final event, with a prize of €50,000 in marketing support.

NOT JUST MILAN WITH THE “OUT OF SUMMIT”
Also this year the Milan Fintech Summit extends beyond Milan with the Out of Summit session on October 5th in Biella, as part of the BiDigital event focused on digital innovation in the Piedmont region. Organised by Sellalab, Sella group’s innovation platform, and BTREES, a digital communication agency, the event will feature over 50 speakers aiming to promote a culture of positive impact for all participants through thematic lenses of innovation, entrepreneurship, communication, and social and environmental impact.
The Summit's Partners to date include Blank, Chainalysis, Coverflex, Consulens, DGI – Digital Gold Institute, Earnext, Fabrick, Finance Malta, Genio Diligence, Illumyfi, Integrity 360, Lexia Avvocati, Mastercard, Mia Fintech, Pausepay, Quarkpay, Refink, Sella, Swan, Terrapay, Treezor, Trustfull, Visa, and Wallife. The International Promotional Partners, bringing the world to Milan, are the Spanish Chamber of Commerce in Italy (Camcoes), EWPN, Fintech Belgium, Fintech Bulgaria, Fintech Hub LT, Fintech Latvia, Fintech Poland, and Hub Brussels.

Thanks to the media partnership with Breaking Banks Europe - the European edition of Breaking Banks dedicated to everything on European Fintech at large with a special eye on innovation and a zest of inspiring stories along the way, hosted by some of the world’s most well-known hosts and influencers in fintech - we can propose you an entire podcast show focused on the preview of the Milan Fintech Summit fifth edition. In fact, in this episode of Breaking Banks Europe, Matteo Rizzi interviews Chiara Padua, Deputy CEO of the Fintech District and Head of the Milan Fintech Summit (MFS).

They discuss the upcoming 2024 Milan Fintech Summit, its theme, “Smells Like Fintech Spirit,” inspired by music, reflecting the evolving, dynamic nature of fintech.

Chiara highlights how MFS has grown since its inception in 2020, including new tracks and regional events, emphasizing the importance of in-person gatherings for networking and collaboration. She outlines key themes for 2024, such as embedded finance, sustainability, diversity, and AI, all covered in sessions titled after iconic songs. They also preview notable speakers and collaborations, underscoring the event's community-driven ethos and positioning MFS as a hub for fintech innovation in Southern Europe.

The episode provides a sneak peek into what attendees can expect, including the chance to engage with leading industry figures.

Digital banks have made a sizable dent in the business of traditional banks in recent years. The popularity of digital banks continues to grow, and according to the numbers presented by Nokyc.com, customers are expected to deposit wealth worth $15.32 trillion in 2024.

VALUE OF DEPOSITS SET TO GROW BY 22.7% IN 2024

Digital banks continue to grow in popularity. According to the latest Statista Market Insights, customers worldwide are expected to deposit funds worth $15.32 in digital banks in 2024. Such a figure would indicate a year-on-year increase of an impressive 22.7% in annual deposits. The deposits in digital banks stood at $12.49 billion in 2023.

Digital banks are a recent phenomenon, but they have already made their presence known globally. In 2017, the deposits in digital banks were worth only $800 billion globally. The value crossed the trillion mark for the first time in 2018.

Such banks have really taken off in popularity following the COVID-19 outbreak and lockdown. The value of deposits annually have grown at an incredible rate, especially after 2020. The rate of growth is expected to slow down in the coming years, but according to the Statista report, deposits in digital banks will continue to grow at a healthy rate.

In 2025, deposits are expected to reach $17.57 trillion, following a year-on-year increase of 14.7%. By 2029, annual deposits in digital banks are expected to reach $22.62 trillion.

USER BASE TO CROSS 300 MILLION IN 2024

The user base of digital banks is also expected to show an splendid level of growth. The user base is expected to grow by 20.4%, on a year-on-year basis, to 301.8 million in 2024. In 2023, the total number of digital bank users was 250.7 million.

It is an impressive growth, considering the user base stood at just 18.95 million in 2027. However, the growth in the user base is expected to slow down beyond 2026. The total number of users worldwide is expected to reach 386.3 million in 2028.

Easier access to financial services in comparison to traditional banks is a key reason for 41% of Italian consumers turn to embedded financial services, according to a new study by Solaris and consulting firm Roland Berger. The ‘Disrupting the value chain for financial services - How to drive revenue growth with embedded finance’ study considered the views of 1600 consumers equally split across the four major European markets: Italy, Germany, Spain and France.

41% of Italian participants named product accessibility as the defining factor for using embedded financial services and products. This can be attributed to simpler applications and faster KYC (user verification) processes[MOU2] [AS3] : in particular, 75% of Italians are satisfied or completely satisfied with them.

That was ahead of 36% of respondents noting strong availability of embedded finance solutions at the checkout and 25% acknowledging improved user experience as well as 30% referencing attached benefits such as loyalty programs and payback schemes.

PREFERENCES OF EMBEDDED FINANCE IN ITALY: THE DEBIT CARD GUIDES ITS USE

The rise of cashless and cardless payment methods was prevalent in the types of embedded financial services that Italian consumers are currently using, with digital wallets accounting for 37%, ahead of credit cards 30% and online bank accounts 26%. Only debit cards (41%) are being used by more people than digital wallets. Interestingly, while buy-now-pay-later (BNPL) were noted by 18% of respondents across Europe, in Italy BNPL was by far the less popular embedded financial solution as acknowledged by 7% of those surveyed.

"The embedded finance market is increasing in maturity in Italy. Our study highlights that payment products, in particular such as debit cards, are a great chance for companies to integrate embedded financial products into their value proposition. This can satisfy the need for faster, safer and more attractive financial solutions that’s crucial for our partners' response to changing customer behavior”, commented Federico Roesler Franz, Managing Director of Solaris Italy. “These are products with which consumers are more familiar and, thanks to them, our partners can get to know their customers better and promote and reward customer loyalty”.

When asked what parameters would make a consumer more likely to use an embedded finance solution, more than a quarter (27%) cited that being able to obtain multiple products from one brand as a key factor, with digital wallets the most desired new product.

SECTORS AND CONCERNS OF EMBEDDED FINANCE BY ITALIANS

The study also revealed that more than half of Italian consumers (almost 60%) have used an embedded finance product from e-commerce businesses, followed by retail (27%) with travel (26%) and transport and mobility (37%). The research discovered that data security remains the largest area of concern in relation to taking out embedded finance products for 64% Italian consumers ahead of transparency (25%) and trust, as noted by a third (33%).