In 2023 The Digital Payment Transactions In Italy Reached 444 Billion Euros (+12% FA)

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.


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