According to the latest "FinTech Survey in the Italian financial
system - 2023" conducted by the
Bank of Italy, the finance technology sector in Italy could attract
over 901 million in investments for the two-year period
2023-2024, in order to purchase innovative technologies for grow. While,
in the two-year period 2021-2022 it amounted to 600 million euros. Furthermore,
further investments of 380 million euros are planned 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 even if "the
process of digital transformation of the financial system, although expanding,
is quantitatively limited and polarised".
This increase in investment is reflected in the advancement and adoption of key
technologies that are shaping the fintech landscape. Among 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), which obtained 14.9%.
Focusing on the main business areas, financial intermediation
emerges as the most financed sector, absorbing 43.7% of total
investments. Payments are not far behind, with 39.4%
of investments, highlighting the growing importance of these two areas in the
fintech context.
In the world of
payments, Instant Payments and
integration into digital wallets represent the main trends, reflecting
a change towards faster and more integrated transactions. In financial
intermediation, however, the focus is on the digitalisation and
automation of credit processes, marking a significant step
towards operational efficiency and the reduction of processing times.
Like any innovation, however, the adoption of these technologies is bringing
with it 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 the information technology side
outsourcing also entails an increase in risks related to
security and data management, underlining the need for a
balance between innovation and cybersecurity in the fintech
sector.
Finally, looking to the future, and above all to the new generation of
entrepreneurs and professionals in the industry, the report also emerges that,
over the last year, there has been an increase in the number of
fintech
startups in Italy which have brought innovation and change to the
sector and particularly in the field of digital payments, where many of them
develop electronic wallets, payment applications and money transfer services.
Even in the lending and loan segment, these companies offer
proposals ranging from online loans to alternative financing solutions.
Blockchain technology and cryptocurrencies represent
another area of strong growth. Finally, some startups stand out in the
digital asset management sector, offering automated financial advisory
services, also known as robo-advisory.
Another important fact for the growth of the startup ecosystem in Italian
fintech is also the increase in collaborations with traditional banks and other
financial institutions which is becoming more and more frequent. However, when
entering a more traditional collaborative context, startups quickly find
themselves facing significant challenges. Among these, regulation and compliance,
competition, and building a relationship of trust with customers represent the
main obstacles on which these young excellences will have to keep working in
order to continue innovating the market.
02-06-2024