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The Digital Trasformation in the Italian Banking Sector

Author

Listed:
  • Davide Arnaudo

    (Bank of Italy)

  • Silvia Del Prete

    (Bank of Italy)

  • Cristina Demma

    (Bank of Italy)

  • Marco Manile

    (Bank of Italy)

  • Andrea Orame

    (Bank of Italy)

  • Marcello Pagnini

    (Bank of Italy)

  • Carlotta Rossi

    (Bank of Italy)

  • Paola Rossi

    (Bank of Italy)

  • Giovanni Soggia

    (Bank of Italy)

Abstract

Using a unique dataset based on the results of a survey of almost 280 Italian banks (Regional Bank Lending Survey), this paper presents early evidence on the digital transformation of the Italian banking sector over the period 2007-2018. By building a composite indicator that measures the digital supply of financial services, we show a growth in digitalization over the entire period, with a clear acceleration since 2013. The adoption of digital technologies is not homogeneous across banks and, to an even greater extent, business areas: digitalization started in payment services at the end of the 1990s and then spread to asset management, whereas the use of digital channels in lending is still less frequent. More recently, banks have also implemented new FinTech projects, mainly for digital payments and asset management activities. Lastly, we find a positive correlation between the intensity of technological innovation and bank profitability, and a negative correlation with the number of branches, signalling a potential substitution effect between physical and digital channels.

Suggested Citation

  • Davide Arnaudo & Silvia Del Prete & Cristina Demma & Marco Manile & Andrea Orame & Marcello Pagnini & Carlotta Rossi & Paola Rossi & Giovanni Soggia, 2022. "The Digital Trasformation in the Italian Banking Sector," Questioni di Economia e Finanza (Occasional Papers) 682, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_682_22
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2022-0682/QEF_682_22.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Massimiliano Affinito & Federica Sabbi & Raffaele Santioni & Francesco Santorelli, 2024. "Types of consumer credit and bank distribution channels: insights from Italy," Questioni di Economia e Finanza (Occasional Papers) 879, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    banking system; Big Data; financial services; FinTech; technological innovation;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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