There are 326 startups in Italy, Fintech & Insurtech, able to raise € 654 million in funding, which are opening up to collaborations with different actors.

There are also 48 open finance platforms operating in Europe that allow data exchange, activation of services, collaborative ecosystems and aggregation of ideas, while the provision of financial services also extends to other sectors.

As many as 12.7 million Italians (29% of the population 18-74 years) already use at least one Fintech & Insurtech service, especially Mobile Payment and Chatbot to communicate with the bank, with a high level of satisfaction.

Among SMEs, although financial services are not fully disseminated, companies often choose digital tools to use them.

20% of users now connect to their smartphone or tablet bank and at the end of 2018 the advanced subsidiaries with self-service stations reach around 11% of the total, while more than 20,000 subscribers to RoboAdvisors and 25

The results of the research carried out by the Fintech & Insurtech Observatory of the School of Management of the Politecnico di Milano, presented this morning at the Data showing a picture of the digital revolution investing finance and insurance, bringing traditional banks and actors in the sector along with new innovative companies, BigTech, car manufacturers, retailers, utilities and companies from many other sectors in the Open Finance era.

Startups and fintech users in Italy

326 fintech & Insurtech startups are registered in Italy, with a total funding volume of € 654 million. On average 2.6 million per company, not yet substantial capital (with the exception of some very limited cases such as 100 million First Insurance and over 70 MoneyFarm). The sectors in which they operate are heterogeneous: banking services (42%) to financial and insurance-oriented technology services (25%).

On the other hand, 12.7 million (29 percent of the population aged 18 to 74) Italians have used at least one Fintech & Insurtech service in 2019, showing a high level of satisfaction. This is revealed by the analysis carried out by the Fintech & Insurtech Observatory in collaboration with Nielsen Italia, from which it emerges that it is the young people between 18 and 24 years of age who know and use more these services (89% know at least one and 72% use at

The most widely used services are Mobile Payment (14%) and Chatbots to communicate with the bank (10%), while among the least used are instant/on demand insurance (2%) and behavioral premiums insurance (1%).

In the management of savings, 40% would not rely on any actor, but the preferred ones are the traditional postal and banking operators. However, young people aged 18-24 are also looking at smartphone manufacturers or startups (29%).

For funding applications, 60% would not rely on anyone, but among the players, banks (66%), postal services (45%) and SRG (24%) are mainly chosen, and among the young people, telephone operators (22%) are also growing in comparison with the average. For future banking services, the absence of basic costs, speed in operations and response to problems are important, together with the possibility of a meeting in person in the most complex cases.

As regards insurance, only 14% of users have already purchased a fully online policy (86% of these are car insurance, few home cover and life products). The majority (66%) of consumers have never bought digital policies and do not intend to do so in the near future, mainly because of lack of confidence and because they are satisfied with the traditional channel.

The sharing of data is increasingly important: already today 12% of the Italian population share information on driving style through black box and to the foreclosures are limited, with 65% sharing information on driving style, 66% on home safety, and 65% sharing information on driving style.

Small and medium-sized enterprises

Among the SMEs, financial products and services are not fully distributed ( 36% of companies have never used them), but the channels of use are often digital. 64% of Italian SMEs use financial products and services, mainly advance invoices (62%), medium- to long-term loans (43%) and leasing (42%).

Credit transfers (98%) and F24 (81%) prevail in payment instruments. The digital channel of Internet Banking prevails in payment instruments, while in the use of financial products there is a strong balance between digital and physical channels.

In 68% of the SMEs, relations with financial institutions are maintained directly by the owner or one of the members, with a high propensity to remain with the main bank (declared by…89% of the SMEs). The choice of the bank and the main insurance company is based on criteria relating to economic convenience (for 49% and 60% of the SME) and the adequacy of the offer (45% and 49% respectively).

In the choice of insurance, SMEs mainly target traditional players, such as insurance companies (90%), and banks (36%), buying mainly in traditional ways ( 78% of SMEs opt for a fully physical channel), but 18% rely on hybrid solutions

Consumer banking channels

At the end of 2018, according to the research of the Fintech & Insurtech Observatory, it reached 20% of the share of banking users that connects from smartphones or tablets. The share of PC users (48%) is higher, but for the first time it is falling over the total number of customers (-3 points). While several institutions have continued to close, in 2018 the advanced branches (+11% of the total, +4%), with self-service stations, have increased, through which customers can take advantage of services in total autonomy.

As of December 31, 2018, the Italian market had more than 20,000 subscribers to RoboAdvisors, through which customers invested on average between 20,000 and 30,000 euros per year. In 2018 250,000 Italians used the digital piggy bank, through which they set aside small sums of money in different ways (e.g. to set aside a certain amount or the rest of each round-up transaction at the euro).

Under the push of the PSD2 regulation that obliges banks to open their own Api and share their customers’ data with third parties, is being established the Open Banking, the paradigm according to which the information and financial transactions can be enjoyed freely by customers

A concept that has been overcome by the wider Open Finance, the open innovation in the financial world, of which 48 platforms are already active in Europe, allowing data exchange, activation of services, creation of ecosystems of collaboration and aggregation of innovative ideas. 54% of these are new companies such as startups, 46% by incumbent (financial institutions and technology providers).

Most (79%) of the platforms do not offer APIs that go beyond PSD2 and the vast majority focus on traditional banking services. Only 31% of connectors are accessible to anyone, i.e. Open Api. 52% do not show the number of bees available to their customers, 31% have less than 100, while only 17% more than 100.

Financial services, the Fintech & Insurtech Observatory points out, are not exclusively for financial sector players, but are now found in at least 12 different sectors. The analysis of 4 of these

35% of the 55 non-financial actors analysed also offer financial services not closely related to their core business and directed to new customers, while 18% offer their customers financial services disconnected from the core product; one company offers a service related to its core business but to new customers Among these actors are the BigTech, such as Amazon, Apple, Facebook or Google, which today present a part of their financial services offer only outside Europe, but from which you can expect a soon extension also to our continent.

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