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The Fintech ecosystem in Italy: an analysis based on the financial statements of a sample of firms

Author

Listed:
  • Serena Palazzo

    (Bank of Italy)

  • Gabriele Sene

    (Bank of Italy)

Abstract

In recent years, the Fintech sector has recorded a significant expansion globally, benefiting from technological and regulatory innovations and from particularly favorable macroeconomic conditions. This paper describes the Fintech industry in Italy, both as a whole and by main sector of activity, through an analysis of the financial statements of Fintech operators not subject to banking supervision. The results outline an ecosystem composed largely of small firms – heterogeneous in terms of corporate form, activity and balance sheet structure – that are experiencing strong turnover growth (especially in the insurance, credit, deposit and payments sectors), with encouraging signs of improvement in terms of profitability. However, the sustainability of the business models applied, mainly focused on building a reference market and increasing the customer base, is often guaranteed by multiple rounds of external financing. Overall, these findings suggest that the Fintech sector in Italy is still in its development and consolidation phase but could become strategic for the financial industry in the future.

Suggested Citation

  • Serena Palazzo & Gabriele Sene, 2024. "The Fintech ecosystem in Italy: an analysis based on the financial statements of a sample of firms," Questioni di Economia e Finanza (Occasional Papers) 862, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_862_24
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2024-0862/QEF_862_24.pdf
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    References listed on IDEAS

    as
    1. Polasik, Michał & Huterska, Agnieszka & Iftikhar, Rehan & Mikula, Štěpán, 2020. "The impact of Payment Services Directive 2 on the PayTech sector development in Europe," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 385-401.
    2. Thakor, Anjan, 2020. "Corrigendum to: Fintech and Banking: What Do We Know?," Journal of Financial Intermediation, Elsevier, vol. 43(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fintech; financial innovation; business models; balance-sheet analysis; performance; sustainability;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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