FinTech Calls for Fuel To exploit a great, maturing and increasing potential
Italian FinTech Observatory 2020 www.pwc.com/it FinTech Calls for Fuel
FinTech Calls for Fuel
To exploit a great, maturing and increasing potential
Italian FinTech Observatory 2020 www.pwc.com/it
2 In the meantime, Coronavirus has arrived: what could change? 4
1. Introduction and Methodological notes 6
2. The numbers of Italian FinTech in 2019 10
t tr o fir o or po t pro r o
t t r r o po t tor t t fir t p
3. Towards Open Banking and Finance 20
t t o t o tr r o t p
r o p to o t r to to r
p r o r r op
p t r t o t o t
4. FinTech in depth analysis 42
r o t
t o o
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o t
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t r ro Areas
p t r t r
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5. TechFin 82
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3 FinTech Calls for Fuel
In the meantime, Coronavirus has arrived: what could change?
t r port t t oro r It is quite natural to think that this situation will lead to r ro o t t rt too r to a i nificant inc a in t an a ciation r pr t o o t t p t o o i ita financia ic to r ot to t r o t tr mention the likely exponential growth in the demand t ro o t t o o pro t o for credit p r ro t t o r t or o o r t o o po r o
r r o o r negative impacts to o r that could primarily concern the investments of venture capital o t to t t o o N r t t t t o tr t o t t t t o o t tr r t t less o p r o r t attention paid to new start-ups (seeds). Some analysts to tr t o fi o p on the international market speculate that this could t r o r t t o t o lead to a greater number of closings of players in the development phase. The volume of transactions t o tr t t or might also decrease t t t ort t r o t o t r po to already evident in some sectors such as payments. This customer needs (private and corporate) o to r profit o investments) in the sector.
o r t r r areas of potential optimism. o r t fir t o r t o o t rt r pr t advanced t t t r o t pro p t r analytics o t o t o big data t t r port t t o fir o o o t o to r t The collaboration scenario described in the rt t r t o t t t o r fina c a t o n inanc co n op o o r t r port p rt r strengthened and accelerated. t t r ro fi t t p t o t t o t t forced experimentation r t p r or o t t of new ways of collaborating remotely through o t t t rt r digital solutions ot pp o or t o o t o o t tor or r rt or or t r t o or t ort t r t or o p t t fi t or r t o p t r to r fi t to t t t or t r op t t o t t t t o o t Some areas will be privileged (the lending r o t o ot to o to r t pr or t the customer experience onboarding and KYC r ot op r t o t t o t t o o o t o cybersecurity tificia nt i nc t t t t t t o t o conversational r t r r or o p interfaces t Blockchain). Platforms enabling r o p r r the integration of services will also become the resilience of infrastructures t quality increasingly important in order to support the and quantity of tools t t o rt or o t o t p p r ot t t fi o o r r t to o t o t o pt o r t t o rt or o or t o to r po to r o t t t t r to t r rt or p rt o to r t o t o o t o p p r t r o p t r o t t o r t t ppro to r t t t o r po t t r t rt to t r o tr t o t t o t t to r t r o or t o o ro t t t r
or p t p o o o to prot t o r t o r to r t rt r to t r o o ppo t t to r t o or tr t o t t ot rr o t t ro to t t r o or to r r orr r t roo t t o t o o r rt or r o ro or oro r to t r oro r r t ro to t p o o ro to ro to tto r o ro to
4 Meanwhile came the Coronavirus: how FinTech might be impacted?
Examples of initiatives launched by Italian FinTechs to support in the Coronavirus emergency
Starteed Oval and Walliance have launched DeRev r o r t t o to ro p to r t p r tr t o t o to pport rot t o to pport t r t to pport t o r o t t t r t oro r r t t t o p t t tr t r political representatives who in these days have the Splitty Pay t ro p tt t o or r r t r p o or t o t t o t o t orr t t po o o t o t r tor o t r t o o fi or t p r o t tor GrowishPay allows Italian ecommerce companies to p r t t r t to o t r o t r to or t o or o profit or t o t o t o r Opstart to t r t o fi tr r o o t ro t o t o o r o r t t t pro r t t to t tot o t r r to pport o p t r to t t o t tr r t o t o o t to t t o r o t p rt r o chosen institution. r ro r o ro Tinaba t t o t or o Satispay invites its community to support Civil t pport rofi o rot t o t ro t o t o r ro fi r ro t o t o t o t o t t t or o t r p o t r or o t o o p t or o o o t o o t o t t t o r t r o t o t o or ro t o ro Revolut ot t t p rt o t tr t supports the Humanitas hospitals involved in the Credimi t o fi p t or oro r r t ro t o t o or r t rt t o t t pp o t o to fi pro t t to r provide hospitals with the devices and health materials t rt p to p t o r o r to prot t t o t r p t t t fi t r t o t r t t t o oro r o t o Hype o r t to r t opport t to o t o r t ro t pp t o t o to p t t r t o o o p t to t fi t r o t
5 FinTech Calls for Fuel
1. Introduction and Methodological notes
or t t r o t r t t t 3. N tor r pport o N t o t rr o t investments. research on the FinTech universe in Italy. o t to p Why? r r o t t t or to fi includes: p t o o p oto r p t o t r r tor and examined the sector exhaustively. In this tor r tor r tor t r t o t o t o o r or o t t o o t r t o rt t t r pt p t or p t o t tr t p oto r p o t tor o t o t r t o r t t t ro t r fi o t t t o t t t o t o pro to t r o t p r tor t o r r t t t o o o o t FinTech companies. t propo o o pot t p o or t r t to r The news This edition presents some news o r t t pot t ro o compared to the previous ones: o
t In line t pr o t o t r port o o pot t o r o o t o o t o t o t r o o p t r t o r t t r t t o t r o tor t t r o r t r t o t r p t fi t o t t r r r o o p r o t t o t r t t Separate analysis: t r t po t o r t or t t or t t o t o o tr pro t o t o pr p t r o t t r t or t t t p o t r t r r o p t t r to fi orpor t t o A total of 364 companies were r t r t analyzed, including 278 FinTechs o r t o t r r r t and 86 TechFins
6 7 FinTech Calls for Fuel
What is FinTech in this report
Interest in FinTech keeps growing but it often For the purpose of this report FinTech is… refers to different landscapes t o p o o fi r t r t o t to ro or t t r t o t r fi t o t rt ro t tr t t t p t r t ro o pt r t t r r t r ro r o o r r t o t fi r o t r r fi r p r t r o p t t r p rt o tor ro p r o t t r t r not included. o t o o fi o p ot r t o p t p o o t o r t Companies that are headquartered outside Italy fi pro t o t o o o p r t p ot t pt o t or o ot r o fi tor r r o p o t op r t fi t t t r t or to o t o o t o o fi r t t tr or t fi op r t o or t tr t t t r to r t r r tor TechFin: what is included ot r t tr t p o o p in this report ro t rt p to t o p to t fir r r t r r t o p o o t p r t r o o r t t r o tt r r r t t o o p fi t or or rt tor r r t o p r o o or t o t t o t r r r chosen in some selected areas:
• Advanced analytics In this report we decided to separate • t r t FinTech and TechFin • o r t o t r t t t • Blockchain In this report we have separated the analysis: • p p • to r t • o t o t t t o to pro t ro r or o pr p t r o t t p or
• t t o to pro p o o p t t r to fi companies.
o t port
8 1. Introduction and Methodological notes
rity Pa secu yme Separated analysis for FinTech and TechFin ber nts Cy r M le a M • o p o t r o o b n o a a n n g e fi r r r e y E m h c in e e F n h t T c • t o o p r t r o e T W r r r t o t o r t o M e
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t Qualitative analysis for some industry players t
h t • Challenger Banks are included according to some I c e n e k s T r criteria t t or u in a g rT F M n e l i o o c a d h it a p r a T No t p C &
C Oth ing • Innovative but historical players (such as NEXI or SIA) row er Lend dfu are not included. nding
o r N t o t t r tor
Zebras
or t t o o o o t r po t r t or tt r o p t r o to t t o t or ort o pro o t o pro ot r o o tr pr r o t top o t rt p fi t r t to or r t rpr t t o o t r t t
r or t r r t r t r pr t t po t o t o r t o t r t profit t o r pro t to o t t r o o o to to t r o or t prot t ot r r t r or t pr o o or t o or t to r o or t o t o o p t t o or t to r t ot t t t
ro t o t t or t o o o o t t o r r r o p r to or tt r r pr t t o t t op o r o tr pro or opt t r t t op t o o r o t t t pr t
o r r t o
9 FinTech Calls for Fuel
2. The numbers of Italian FinTech in 2019
The Italian FinTech Landscape 2020
5 ent 2 L em end nag ing Ma 43 278
ey on M FinTechs
Web Platform 150
W AI / Big Data 44 e a lt Mobile & UX 34 h & A Blockchain & Crypto 25 6 s 4 s e s t t Open Banking / API 7 n M e a m n IoT 9 y a a g
P e m Other 9
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10 Business Segments Taxonomies of Italian FinTech A developing landscape
Money Management Wealth & Asset Management Other Crowdfunding Both Multi-banking Assisted Savings Equity Crowdfunding Aggregator Donation Reward Real Estate Equity Intermediaries Digital Wallets Crowdfunding
Retail Retail Crowdfunding Engagement Price Comparison RoboAdvisor Tools/Enablers & Gamification
Online Invoicing Enterprise Financial Management SMEs Treasury Management
Payments Lending
Next Generation VAS for Real Estate lending POS Solutions merchants Business Lending > 50 Different Crowdfunding Mobility and Online Checkout Vending Machines Invoice Financing Consumer Lending FinTech Competitors P2P Payments Cryptocurrency Business and Digital Wallet Circuits & Enabling Risk & Rating Infrastructures Payments Solutions Segments Other Enablers Development
Loans Comparison Intermediaries
RegTech InsurTech Capital Market & Trading Personal Data Fiscal Assistants Marketplaces Data Providers & ID Management P2P Insurance Car-Mobility Pet Regulatory/Compliance Financial Social Trading Document Management software development Competitors Networks & Tools
Negotiation Infrastructure Data Micro-Instant Crypto Investing Other NPL Trading Other /Commerce Platform Backend Intelligence Prod. Insurance & Trading
Enablers Home Life Claims
Marketplaces-Brokers
o r N t o t t r tor Intermediaries
11 FinTech Calls for Fuel
The sector runs, but lacks fuel The Italian FinTech industry confirms, also for 2019, a high dynamism and a positive and promising scenario
• Companies are growing. The FinTechs we listed r or t t t t o o or o p t to t or o r t t tro t o o t t t t ot t p t or t r t t ro o t t o t o r pto rr p tr or N
• Turnover is growing o r t r o r o t FinTech industry in Italy (actually only relative to the o t o p r o t t t r t r o fi ro o p o profit o p or o p r r o t ro t r t o t pr o r
• Scaleups are growing r o o p t or or r r fi t ro t r to to
FinTech in Italy in 2019 (VS 2018) The Italian FinTech portrait
278 FinTech Young or t r o 374 million € revenues Small t t p o 154 million € capital raised Growing r
8 areas & + 50 subsegments Promising r o ro New to t o p t t t ro p t r pto t r N tr
o r N t o t t r tor o r N t o t t r tor
12 2. The numbers of Italian FinTech in 2019
Italian FinTech r o o p
+ 49 new entries • 18 newly established companies 278 the FinTechs in Italy in 2019 • r o o o r t r (+ 49 on 2018) - 29 unlisted
• o t op r t o t t o t o 278 t t r o o o r t r
229
7% Sparkling18 acquired by Nexi 176 17% Beesy – merged with Penta
31% 17% Acquisitions Liquidations Dormant companies 28% Discontinued Operations Revision of inclusion criteria 2017 2018 2019
o r N t o t t r tor
Milan is the core of the Italian FinTech landscape 2% 2% 54% 3% 6% rt r o p r t 5% 1% 1% 2%
10% 45% o t 1% r Milan 1% 1% 1%
o t o r rt r ro 1%
o r N t o t t r tor
13 FinTech Calls for Fuel
Revenues FinTech by number of employees Rocketing Growth for Italian FinTech 1% % on Total o p r too o 6% N° of employees No rofit t r t o rt r or t 20% o t r ot 2 - 10 11 - 50 50 - 100 73% 100 +
373.4 million € / +40% t
o r N t o t t r tor FinTech revenues
373.4
+40%
267.6 +28% 208.4
2016 2017 2018
t fi r r ro t r or t t t o to t t o rt fi fi t t t t ot t r
o o p o tot p
Available 2018 10% Financial Statement 10% Newborn 2018-2019 No profit 4% No italian No available 12% 64% Financial sttatement
Values in million € and percentage variations year on year
o r N t o t t r tor
14 2. The numbers of Italian FinTech in 2019
r o r r Capital Market & Trading, Payments, Money Management and InsurTech are the 2018 stars. Increasing weight of Lending, RegTech does not take off
25% 2018: relevant growth 60% for all FinTech’s areas 160,0 46 43 140,0 Payments Lending 129 mln 120,0 121.4 mln FinTech 100,0 2017/2018 overall turnover growth 80,0
60,0 36 46.1 InsurTech mln 40,0 2018 FinTech Revenues , million Euro 46 30 Wealth & Asset 23.1 22.9 25 22.7 Capital Market 20,0 Management mln mln Money mln &Trading Management 0,0 0% 10% 20% 30% 40% 50% 60% 70% 80% FinTech Revenues Growth 2018 on 2017 KEY: N° of companies
Note: RegTech and Other Crowdfunding r ot t r ot t fi t t r o t r o r ro t
o r N t o t t r tor
r o r t tr t o High Concentration
100% 96% 90% 94% 90% 80% 83% o o p 70% o tot p 60% 63% 20 companies = 83% of Total Fintech Turnover 50% 47% 40%
30% 24% 20%
10%
0% 1 3 5 7 9 1311 1715 2119 2523 2927 333135 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69
o r N t o t t r tor
15 FinTech Calls for Fuel
The sector runs, but lacks fuel But there are also much less positive indicators, investments in first place
Investments in FinTech worldwide continue o t r t r r to grow. o t o t t o t r t o p t o t t included two important statements: o t o fir r or r or t t oo to rop • t tt t o t t pt o r t t r to t o o t o p r to or o tr t o p r to t t or t o r t o o o p r to t p t o ro r o p r to t op r t o t o • or t t to opport t r t r Italy is weak t t r t o o t t t t prop t to t t ro t o p rt r p po t o o t o r t tor o p t r p t or or to t t r o t o o tr t o o t t p o t ro t r t r r to p o t tr t opport t to o r o t t p rt t And the situation keep worsening. Investments o o or t o t r o tr t t t t t t t r port still limit their action”. rt r r ro o t o o o r to Encouraging signs for the future o • t ro t o fi Funding more r to t t r t o r t tr t or t t rt p t o t t r po r t o o p o t o o r r o o t • tr t t t o r o r t fi fir t t t t t rt p o p to o r opport t or or fi t t r t r o r t r o t tor p r t r tor r or op t o o pro t t o t t r o r o p o t r o t o t t t op r t t to oo or o • o o r t r t pro ot ro o r o o o r t r p t t t t o or t o t p o o t t rt p
Investments of banks in FinTech: a still missing opportunity***
t r t o o t t t r A greater propensity to invest t ro t r o t r r o t r tt pt to o r o t o p rt r p tor to r r t t o t o p t r t r t to ro r modest o t could allow o p r to t t or t o r t o o traditional intermediaries to exploit and marginal o p r to t r o t o tr t opport t to o r o t t p rt t o o or t o o tr t cultural that still limit its action
t t o t t tor r to t t r r o o t r t t fi t r
16 2. The numbers of Italian FinTech in 2019
Investments The bottleneck of Italian FinTech
ot t o t p t r o p N r o t t o o or t r o p or Prima assicurazioni 100 • Investments are a key challenge or -23% the italian FinTech development.
• many areas italian FinTech is 197.2 going to close the gap with the more (34) 153.5 t r t r t o r t r o o p r t o o (34) r o or t o it is not so for investments that even shows a negative sign (compared to +49% 2018 2019 growth in european landscape). p t r p r t r o op r tor • Italian t t compared to UK Market fir t r 5% 5% in europe).
• Crowdfunding t r pr t Crowdfunding port t t r t to fi t p International VC t t t t 153.6 43% National VC 48% IPO
Important note t pro t r o r rr to t o p t t r port r t r or r t ro ot r o r p o o o or p o r N t o t t r tor
17 FinTech Calls for Fuel
Capital raised by Italian FinTech in 2019 per area
Of wich 55 to SOLDO
Money Management 1.7 60.1 1 62.8
0.9
Wealth & Asset Management 52.2 2.8 56
Of wich 7 to MatiPay Of wich 43 to Moneyfarm 1.4
Payments 11.1 2.2 14.7
1.4
Lending 3.8 2.2 8.5
Of wich 5 to Yolo
InsurTech 6.9 0.5 7.4 2019 was also in Italy 0.1 characterized by some Capital Market & Trading 0.1 4.1 4.3 big deals and less early stage deals. National VC International VC Crowdfunding IPO
Value in mln €
o r N t o t t r tor
Capital raised by Italian FinTech in 2019 per technology
Mobile & UX 79.5
AI/Big Data 44.8
Platforms 29.2
Blockchain/Crypto 0.1
Value in mln €
o r N t o t t r tor
18 2. The numbers of Italian FinTech in 2019
The sector runs, but lacks fuel Still missing an adequate profitability
o pot t r t tor r pr t t EBITDA 2018 is 2% profit t o t o p r t tor r t t t t r o r r t tor to t o o o p t tor t r o t t r r o r t o r t o to t r o t It is LOW o o p o t t t profit t t t o r r t o t tor t t o t t o t port t r o t t r o r o o p o Higher in Capital Market ro t t r o r t t pr t o t t r r t r o p t t o r & Trading and r r t t po t o profit t Money Management r t ro r o o t tr t o t t o o t t t t r rt fi t o t r t t t o t Negative in Payments rop t r r to t pr o t t r po t or t tr t r t t o t p t r t r t r p t t r t o r po t t t t t t r p t
o r N t o t t r tor
tot EBITDA Margins in Italian FinTech 373.4 REVENUES
267.6 EBITDA Margin
• r r t t r t Revenues: million euros o t r t o t t r o r
• t r t r t p t r t o 2% 2% t 2017 2018
• t r t o r t r t p r r t t o t ro REVENUES (millions Euro) or t r t ot r t r o 129 121.4 p r r pro t r EBITDA margins (%) o r o o r t t r r r o fi t to t t o t o t o o r t t ro t o p t r t 46.1 23.1 22.9 22.7 underdeveloped. 6% 1.5% 8% 18% 19%
-9% Lending InsurTech Wealth Money Capital Market Payments & Asset Management & Trading o r N t o t t r tor Management
19 FinTech Calls for Fuel
3. Towards Open Banking and Finance
Italian FinTech is lagging behind, but moves in line with global trends, gradually closing the gap
tor o o o t t oot t t t o t r t o or r t r r o o t o r p t p r r o o o p t t t t p t r t r t t r o o r o t r o oto t t o t fi t In Italy t o r t rt t r t t r t o r t t r t op t o t p o o t or r t t rt t o t r r o t t t r t ot o to t o p p t r t or t rt r p p p t t t t r t o t r p o o r t or r o p t t rt r r o r t r t o t p t ro o t t r t port t t p t op t o t r pt o r t r t t t o o p t or or t t pr pt o o t rt p to t t r t o o p o r to o t tt r t tr t o r t tro r o t r r o p r o t p t ro o r o t o to t r t t to r t rt ro or o t o r t o p o o o t one hand FinTechs understood that they had some pro t r t ro r t r tor pro t o o to r tr t o t ot r tr t o fi o p r t o t r t t orpor t o t o
3. fi t t r p o t rt r p o or t o t or to t r t o tr t o o o
r r r
20 The signs of consolidation of FinTech consolidation: ro o r po t o o t o or alliances, extended operations, focus on key players t t o t t r t t and globalization. FinTechs that move to the international market. Many o ot ro t • Alliances and collaborations p t r o r t ppro o t t r p t International FinTech companies that land in Italy. to t r o o o r t Examples p rt r p t o p t p o o t or • ro o t r tor r r t t or t r tr t or t ro t r t o o r t o po • ro r t p rt r p t tr t ttor t p r t t p o o or t ro t t o o p t or o p Iwoca and ClauseMatch (Intesa Sanpaolo). t r t o pr o t o • ro t t t • Extended operations/offering r o t r t t p o t r t or o rt r o t o t to o t N r t to p t r fi t examples in our country in the last year such as t o p t t o ro p o o op o t r t tro t o o t r r ro o fi to • o o r to p to rop r t r t o t t o ro t • Investments’ are focused on the main players. o r p t t pot t t p t o • o r o t t p o mature companies (which on the other hand could Germany with new products. fi p or rt r op t o tor • r t t t t r tor o t r t t r t r o tr t o pr p r o p p po pr t r o o t t o t r t tr European countries. o o t o t t r o o • Walliance has landed in France. o r o t tot t t t tor fir t • Globalization ot or o p r r t ro t o t o t r t or fi o p t t fi o t o o t r t t r t r t o panorama (despite the constraints still imposed r t o ro r fi t r approaches in the various countries).
21 FinTech Calls for Fuel
p Italian FinTechs are late, but move in line with international trends and are closing the gap
p t tr o t rt to o to r o o t o
Italy
60 400
50
300 40
30 200 20
10 100
0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Number of new FinTechs Number of new FinTechs
o r N t o t t r tor o r r pt o o
22 3. Towards Open Banking and Finance
5 years late 4 3-4 3 Italian FinTech
2010 2018 2020-2022 2025 ...
Disruption Discussion Partnership Integration Renewal t fir t p o The second phase FinTech moved r o ro t r t o o t o o t ro r pt p rt r p to o p t the start-ups wanted when deep discussions tro t t r t o o r t o t to disrupt and replace to p t to t t rt did hackathons and t t t t t ro t t o t p oo r t innovation theatre. to o or t p fi o r t needed to work with o t o t p rt r t t Open APIs. t or t r t r t or t o t r t o r t t t p rt r t t r r t r t r t o t rt p r o connection. op o t t r t t r t t r t t or p rt r t r or o t r too real-time.
2005 2014 2017 2022 2027
Worlwide FinTech
o r pt ro r r r
23 FinTech Calls for Fuel
The key trends driving the FinTech consolidation
Alliances & Collaborations Globalization:
• o o t o t t International FinTechs move to Italy new players in Europe. • or to o t t t r r 42 direct partnerships In the last months many international (17 M€), 11 collaborations through Incubators-Accelerators-Hub players landed on the italian market. (5 M€) Acquisitions-Shareholdings (6 M€). • p t p o o or r t • ro N t o or p rop o r r • rt r p o or t o t r tr t r o r p or r to o to to • ro sustain the italian corporates and SMEs. r t t o and ClauseMatch (Intesa). • ro r t t t From monoline to mainstream Penta (that acquired Beesy- Italian p o t r t • r o r o tr r t r o tor to o t N t o o pro t propo t o r o r to fi r r t r t o tr to r o t p r t ro pport o r r tor op t r o r t o to t t Italian FinTechs move abroad r t r o o p t t o to r o • p o o o o o o t • o o r or p o to t ro t r r ro o fi to rop r t o t o r o t r or o r t o ro t o op r tor p p ro o p to p p t or Ireland. • o r o t to p landed in Germany with new products. Leading FinTech players attract a greater share of capital • r t t t r Epipoli prepaid cards which is present • tr r o t o r t r in various European countries. t o po t o o p $34.5B across 1,913 deals: • o fi oo to t pp r o r r o o r 2018 • r t t ro port n in a in at t r or Walliance landed in France. Removing this round o record funding year”. • t t top r t t t o t to o ot r p r o o o r t o o
o r N t o t o t t fi r o t o t r tor
24 3. Towards Open Banking and Finance
Over 300 companies to give innovative answers to customers
p o o t o t pro o or t tor o o r t r t t r t tr to or o o pt r t pro or t o o o t
p o r opport t to rop t t t o t r p t or tr t o p r tr p r o t t or p r ro tr t o r r r r p t t t r o t r or to fi t o o t t o r o o rr o ot r ro t p o to op p t to t o t to o o o r opport t or r t r t t t to o tr t o o new use cases.
t t p rt r o t t t o t t t to t t o t opport t pro op r t t to o op p rt r t to o r ro t o r o t to r r tr to o t pport op fi o ot or r t o t r or t o o
r or r o r or tr to p o r r po to t o o r to r
r t rpr p t r t t t o t po to o t p to t r t t tr t o r o r o tr t to r p rt r r po to r p tr o t t rr t o
The road is still to be drawn and the path has not yet been started t t o fi r o r t r t o r o t t t t r t to o
t r t ot or o t rt ro or t op t o or t or pr fi o t o o t op t t o r r t to t fi t t t to our country as a whole.
25 FinTech Calls for Fuel
Retail Business Model
t r r to o o r t to r t r r to retail investments fir t o p improving customer ro r t t r p rt o op fi experience ro t t to to r o r o t o o r t o o to r to r t r Wealth and Asset Management and the Capital t o o r t TechFin o p t Markets and Trading t r o r Conversational Interfaces and Text r t o t t r ro t Analytics or p Conversate or OpenAI) and o t RoboAdvisor (Moneyfarm, Customer Engagement” (Worldz and Friendz or Euclidea) and Equity Investments platforms to t o t Money Management cluster or tr too Flowtech and t o o n a m nt an Gamification Crypto investing platforms as The Rock Trading. such as Tickete t o r o o o t Assisted Savings t ro t onboarding p oot Money Management cluster (Oval and Gimme5) let p r t p or to r to r t t r r pr t t o o t r o t rt r opt o to r rt r or or t t Vis-à-bit r customers interested in social causes also FinTechs suited to play this role. o t Other Crowdfunding cluster may represent t r t t r t t o o ot pport op fi o o r comprehend a return on the investment. an in in anc financ o ct . The whole t t t o o po o t Lending cluster may play a role even o r t ro r or or o p o pro t ort r t p o r r to r r t o t t p pr t o t t to t o o t o which operates as mortgages comparison websites (MutuiOnline, MutuiSupermarket t t r t o tr t o current account is a simple tr o PropTechs companies show that also in Italy pro t p rt o t o r o t o t r t pro ort r Money Management t r op r t as Digital Wallet or Assisted Savings (such as Oval or Soldo o o t t o t o t t p fi or t o t P2P Payments t r pro t t t o r op such as Tinaba. fi r o t Complementary pension schemes o r pro t tt r ro p to t r t ot r o tr t o pro r o p t t t r o r r t Payments o r op t to InsurTech brokers services ro e-commerce solutions (such as such as Propensione.it. SplittyPay or Moneymour) to Mobility and Vending Machines solutions (MatiPay MyPass p rt ro t p fi pro t o r ot r r t to ro o t Lending t r o r r t o t op o t r r fi ca o t o r r p r o o p assistants (Taxman, Fiscozen, EasyTax) or document the Consumer Lending o r t o management platforms (Digithera, LexDo.it) in the Circuit and Enabling Infrastructers r t RegTech t r r pr t r t to p t op o oo t t t r t o r t tr r InsurTechs o o t r tr o t t o fi pro t o p r o pp r t r r p rt o t op r o t o t r t t to o r pro t ro t r p r o r t fi t t t o t o t o p o p o r t r r to op to p t to r r t o p o r o t o t t o t t r o t tt r pro t to t r to r comparison and t r P2P Insurance (Axieme intermediaries t o t Micro-Instant insurance (Yolo, Neosurance) and chain (as in Money Management InsurTech Wealth o r Iooota, Healthy Virtuoso t to & Asset Management r or o t o o this kind.
26 o in c can o t n o n financ business models for consumers
Examples - the customer
Customer Experience Customer Service-Customer Engagement (B2C) • Personal Data & ID Management • Conversational Interfaces and Text Analytics 23 5 Onboarding - KYC - Identity Management • Customer Engagement 2
t fi t o Banking-Financial-Insurance 2 • Payments (P2P-Digital Wallets, Mobility 22 Basic Current Account (debit cards) and Vending Machines, Cryptocurrency…) Payments • Assisted Savings 2 • Digital Wallets 4 • Consumer lending 6 PFM - Multibanking aggregators • Circuits & Enabling Infrastructure 9 • Multibanking Aggregators Credits - credit cards 1
Insurance • Wealth & Asset Management • InsurTech (Car-Mobility, Claims, 46 30 (RoboAdvisor, Equity Crowdfunding…) Investments P2P Insurance, Micro-Instant insurance, Life-Home, Brokers, Pet…) • Capital Market & Trading (Trading & Tools, 16 Mortgages Crypto Investing & Trading, Financial Social Networks…) Complementary pension • Proptech • Loans Comparison 2 • Other Crowdfunding 34 Other • Marketplaces-Brokers 7 Fiscal Assistance • Assisted Savings 2 Comparison website/brokers
Security
• Loans comparison … 2 • Fiscal Assistants 3 • Price comparison • Document Management 3 4
• Intermediaries Key • Cybersecurity 3 17 Payments InsurTech Lending RegTech • Marketplaces - Brokers 7 Money Management Other Crowdfunding Wealth & Asset Management Tech Enabler Capital Market & Trading Cybersecurity N° of companies in each segment
o r N t o t t r tor
27 FinTech Calls for Fuel
SME / Corporate business model
r r r t rt to opt segment (Soldo Maxtrino Vipera and others) in the o o o t o Money Management t r t t r eKuota o r t fit ro o t o o t r t o o t Treasury Management t r t o p t fi t t t o o o t o p t t rt t fi r r r o o to t ro ro o t or t r t r t p r o r t t o Qonto and Penta (which entered the t r tr r op r t o r t r t r t t o r pr o r port p or t p r oo or or ro r to o r ro r o r o p r o r o o r o t o o fi r or p t ro o t t p r o ro r t op p t r t (business lending t BorsadelCredito) to to r r o t o t in oic financin (Credimi, Workinvoice r t o r o r o t o to t r o t o r t o t o t Circuit to r t ro op and Infrastructure t o t t r r p rt r t r t op fi ro t t r o p r customer service o t o o r ro o t o o Dynamic Discounting or t pp t TECHFIN o p t PlusAdvance and FinDynamic to o r Conversational Interfaces and Text Analytics” and credit circuit like Sardex and to EU4SMEF t Customer Engagement” and the RegTechs o t r t poo p t or t po t o Personal Data and ID Management t or t tt o or o t t onboarding pro or r pr t tr r pr t t t t p o op t t r ot or t t r o t t r r o p ot port to r o t Money Management to t o o o t o tr r r t t r t o o n a m nt an Gamification tt t o t tt o o r as Tickete or GarantEasy p ro pro ot o po tt o t rt p t to r p r t r t r o t or o o t nline Checkout r to o t t ro segment p rt o t Payments t r Squeezol, p t t r r Moneymour r t pro t to r the equity crowdfunding t t Mamacrowd p r or o r p t o CrowdFundMe and Two Hundred t p t or which directly sell their product online to increase their t ro or r revenues. o o r t r p rt o t o or t o o Advanced Analytics (Rulex, o p p r t o t Agile Lab… o r t to r p Online Invoicing t o t Money Management r t p or t r t pot t to r t r Get Your Bill or Fatture in Cloud t o o t Digital Marketing & CRM (Digitouch, o r r o t port or Doxee, Buzzoole, etc.) present solutions which can t t t tro o tor r t pro t o pr o t rpr or pr t o t o t r o r r to r t ro t t t t o o t VAS for merchants’ t Fiscal Assistants Document Management p t or Domec or Epipoli p rt o t Payments t r o r or Regulatory/Compliance Software Development r o r to o t pro r t companies (Epiphany t AvantGarde group). r t t ot r r o t tr profit or orpor t o t Payments t r o r o o o t o p pro t to r o t ro to p t p r t o r to t r to r P2P o r o tr t o fi r to Payments and Digital Wallet solutions (Satispay, Tinaba, or t rt ro tr t Plick) and Next Generation POS Solutions (DropPay o t o p p t r Scloby r p r t to rt t t r t o t r r p t o o t r o t o o r t to r r o t o t Enterprise Financial Management services to smooth their Payments experience. More
28 3. Towards Open Banking and Finance
o p o t o t o t o o r pro t to ro t rpr t o t t o t oo t t po or to t r Axerve or PayTipper p rt o t Payments Solutions Development t o r o o p t r r ot r t r t to r t r o t o o op fi o o t t o t o t tr t o fi or t t o r o pro t r r t t op o r to to r t pro o t op r t o pro t o t o InsurTechs to t p o t r t TechFins o t Blockchain r o o t o o r Development t o o op r o t Car-Mobilty & Claims p r t o t o o t o t o o to o tor to p t r o p t p tr ro t o pp o tor r t to Air, chain (Informamuse ot r top o t t t Claider, Insoore o o t Micro-Instant- Cybersecurity o p r t to o r t r Product Insurance op o t o to o r r t o t o to orpor t t ro
o in c can o t n o n financ business models for SMEs
Examples - the SME
Marketing - Sales - Customer Services Customer Service- EC/Web Platform/ Customer • Digital Mktg & CRM 19 Engagement • Personal Data & ID Managemet 5 • Advanced Analytics 19 • Negotiation / Commerce Platform Sales: Marketing-CRM-WebMktg-VAS 3 • VAS x Merchants 5 • Online Checkout …. 4 • • Conversational Interfaces and Text Analytics Finance, Administration, Legal/Compliance… • Customer Engagement • Business Lending 6 Treasury Management - Risk Management • Invoice Financing 9 - Foreign Exchange t fi t o • Circuits & Enabling Infrastructure 9 2 Funding: Credits- Financing - Cash Management • Equity Crowdfunding 25 - Equity crowdfunding • Enterprise Financial Management 7 Multibanking relationships • Treasury Management • t r ro or o profit 1 34 Invoicing - Legal - Compliance - Reporting • Multibanking Aggregators 1 Payments (in/out) • RegTech (Fiscal Assistants, Document 8 Management, Regulatory/Compliance…) Insurance • Online Invoicing 5 … • Payments (P2P-Digital Wallets, 18 Next Gen POS solutions, Payments Operations - production - logistics Solutions development…) • InsurTech (Car-Mobility & Claims to 7 o p t ro t t Procurement - Sourcing - SupplyChain Management • Blockchain Development (Supply Chain) insurance, Brokers…) 8 Security • Invoice Financing / Circuits • Cybersecurity 18 17 … & Enabling Infrastructures
Key Payments InsurTech Lending RegTech Money Management Other Crowdfunding Wealth & Asset Management Tech Enabler Capital Market & Trading Cybersecurity o r N t o t t r tor N° of companies in each segment
29 FinTech Calls for Fuel
Italian FinTechs focus on the SME segment
Nearly 70% of Italian FinTechs in the Lending Also Money Management is a key area for more area are targeting SMEs than 60% of FinTech SME offering - t : • Italian SMEs struggle to grow due to the credit crunch. The entire national economic • Online Invoicing. A key area as the mandatory t t r t o t o tro o or r o o o t t pt o to or ro r ot r r t r o p to t r pr t t r t r to p o r orr t t o o or t r t r t r o to o fi t r t r r r p o o p r o p r t ro t ro t to ro to t rop • Enterprise Financial Management and Treasury pr t o t o Management FinTechs in this area provide tools to • n oic financin a It is the most important t ro t r t o t o t t r o o ro t t o t Wealth & Assets Management for SMEs: equity ro t o r t pr o r crowdfunding is a potential new source of funding • Business lending is following The cumulative – still little but growing tot to t o t t r o tr t o o o • t t t ro p t or compared to the previous period). r o ro o p t or t rt p t r o ro •
o r N t o t t r tor r tor o r t o r t t t
30 3. Towards Open Banking and Finance
Total - n° of companies Lending SMEs are key in the Italian 28 o o r t o t o p t 113 111 14 t o tr t p r t t o o o o ro t Capital Market & Trading p o rt t t t t t t t r pr t o t 7 t o p t t o or r t fi p o t t r o t o p p r t t t ot tt t r rop 24 or to t t t ro t t t p fi o r or No o r or t r r o t 5.3 million SMEs who employed over 15 million people and generated a total turnover of 2,000 billion euros
• >45% o t o o t o r r o t t t
31 FinTech Calls for Fuel
Open Finance: resources are developing
Open Finance- to start you need to know each other
t t op r t o o o t r o p
r t t t or t o t r tor o po t r r t propr t r o t o t t or t o r o o o p t or o r r t r tt pp or tr t p r p t o o pro t r or to r
rt r pr t r t t op t o p fir t t p to o ot r op o t o t o
o r t t o t r or tro o t environments where on the one hand FinTechs can develop their p t o t ot r r o p o t t p rt r o t r t t o t o ro o po t op r t o r tor t o o
The emerging picture is promising
tor r tor or o t t rt p t p ro tr r o o t o t to ro r t r o t rt p r t r o r r o p o o t o r r p o tor t p o o t rt p t t r t t rt o o o or Innovation).
t t t p or o pp t o t r tor t to t or fir t o or t r t tr t pro ot to r t o o r t rt p o o t r t o r t orpor t r r t o to r p rt r p t or t t r t o
o r o t t fir t t to r ttor t r r op t t r o t p rt r p t N r t pr t r r
32 3. Towards Open Banking and Finance
FinTech: where to be born, grow, meet, build solutions, collaborate & integrate
The Bank of Italy activated a contact point In the last year the number of incubators for FinTechs ("Canale FinTech“), where to cific for innovative startups in Italy has Incubators & propo fi o t pro t Initiatives From ro or tot o t t Sandbox (…) Accelerators They are usually CROSS INDUSTRY and Authorities Consob, ABI (…) not “FinTech” dedicated
Some FinTech dedicated Ecosystem Two associations: Dedicated Industry Aggregators are borning and ItaliaFintech Ecosystems developing: FinTech District, Vittoria and AssoFintech Associations Aggregators Hub, Plug&Play Italy
FinTech skills are often a bottleneck and Academies start to react by organizing Technological Platforms (OPEN FinTech dedicated courseware such as PoliTecnico Academies APIs) such as Fabrick, CBI Globe, di Milano, Cetif-Università Cattolica, Platforms Cedacri, Sia ecc Lumsa ecc
o r N t o t t r tor
Incubators and accelerators for startups are growing r r r
• In the last year the number of incubators for innovative startups in Italy has grown by 15% or tot o t t o t o t r o t o r tot o o t tor r tor r o t t ort r r o
• r the number of startups that have grown in our country’s incubator ecosystem has increased t ro o p to
• o o o t tor o ro t tot t r o r o t o p p o ro p op o ro or r t r o r o o ro r o o p r to r r ro t t rt p o r fi t ro o ro to ro o
• t r o t tor r t r 62.4% of these are private r t r p or t o t r r r t t o
o r r r port o t p t o t tor r tor o o t o o tor
33 FinTech Calls for Fuel
Incubators and accelerators are (also) for FinTech: examples r N ot t t p r o
Le Village Intesa Sanpaolo Start Up Initiative t o t o o t r t tor or t t rt p p o r o ro p t o t pport t r ot o o o o t t o t o o t r t t t ot o o t rt p t r t r t o r (Milan) Roma Sartup o t rt p o profit or t o o t or Nuvolab o t p r t rt p o t tropo t r o t r tor t t or o t pro ot t r o o t t t to t r t o t tr pr r t rr or ro o t ecosystem. It is proposed to create and help to exploit startup companies. concretely the latent innovation opportunities in the national system. (Milan) Supernova Hub t o to fi t pro o p t pport to PoliHub tr pr r r p p t t r t tor o t o t o r t t t r r to t r t o t o t o o t o t t o p t to o t r o r t o tr t o o t p t o t ro t rt p o p t ro t pro t tr t o p o r r Talent Garden B4i – Bocconi for Innovation t r o r o t o o r t o or or r p p t tor o t p o t o oo tr t r t o o o o o or o t o t to o t o t o o t t p r to o r r t r or o t tr pr r p op r t o UniCredit Start Lab t o t t rt p tor pro ot t t or to pport o tr pr r t o o r t t r o o t o t o o o r o r o t t pport o t p t o Digital Magics t rt fi tor o t o t t rt p Cariplo Factory o r t o t t pro t r p o tor or ro pr tr t o t r t o pro r t to r t r p o o t o t r ro t t o r r t t rt p r t t pro t t t o o o p op or o t o t o t o to p t t tr t r t o p p AreaScience Park t t o o opport t r o t o tor o o p o t p fi r or r t r t o t t rr tor r or p r t t t rt p (Milan) o t or tor t t pr seed and seed phase. (Trieste) Gellify t t fir t o t o p t or o p SellaLab r to o t t t rt p to o t pro ot to p tr t o o p t t r oo or t o t t to t p ro opport t t op r t o t fi t r tor o t rt p o t fi t o o ideas”. (Biella) tr tr t rt fi t r r t pport H-Farm startups with smart money (round A investments) and t t p t or r t t t o p t fi t o pro r o t r t o o o tr pr r t o o t t t o t o o p r o pport t tr or t o o t o p to Reno - BO) t p r p t o r o
34 3. Towards Open Banking and Finance
I3P tor o o t t rpr o t o t o r o profit o ort t p t o t o r t tropo t t o r t t o r t r o o r o r p o t t or o r Foundation. (Turin) b-ventures t t r t rt p r t o pro r pport op t t r t o o o o tor t p o t o rt o o t t t rt p t r t o tor r tor o r o or p t p
Supernovae Labs r tor or r o p t o o t p r rop t o r t r t r o r t r t t ro op o t o t r t r t t rt p fi players. (Milan)
PoliHub: t r
PoliHub pport o r o t o p t t r o r o o r o ro r t t or o r o ro r t o r o
FinTech and TechFin companies ro t o p
FinTech TechFin
Morpheos Konvergence SplittyPay Cleafy Sardex.net Banksealer Scalapay OpenAI Userbot
35 FinTech Calls for Fuel
Some FinTech dedicated Ecosystem Aggregators are borning and developing
o pro ot o t o o or t o o o t o r r t
FinTech District t t fir t t o t r tor to r t o t o t rt p t t o r t opport t o t t to t r t o t or N t rop o r ro r t t o t r t ro o tr o rop t t r t to pport t rt p p t fi t p o t pro r tr t o to t r r t rt p p rt o t o t t orpor t r t tr t o p rt o t r t o t or o t r t o
Vittoria Hub ttor t fir t t r tor t o p o t o pr t ttor r o No r t t to t p t t o o o t o o or t r tor ttr t tor p rt r t rt p po
3. The new Plug and Play center with Nexi and UniCredit is born in Milan t o t t op fi r r r r op t t r o o p p o t t rt p r o p p rt r p t N r t o o t to ttr t t rt p t t to t to t t o p o t tor or r to p t fi new partners and markets. There are seven people r t fir t p o o t t fi p rt
36 3. Towards Open Banking and Finance
37 FinTech Calls for Fuel
Open Finance - integration Open APIs/Open Banking is still, often, a challenge key platforms in Italy
t t t o t p o CBI Globe tr t o t fi t o 15-9-2019 o po p rt r o r o t ~300 banks = 80% of italian banking market p t t op r t o t o o o t o p t or o t t r t o op t p r p o p t t t r ot t p to t pro t t r fi o t o t t t t to o t Nexi: t r t p t t t r o p N or to t r to o t t p o pro t r r t o p t or o t t t t t t t to op r t t r o r o t o o p o pport op o or t Fabrick environments with third parties. r op fi o t t t o t r t p r t t o r t o t t to o r o t r t o o or t r t o t o t o or p t or ro p p r p t t to r t ro p t or r t t t r po to r t o r r r t p t p t p tr t SIA ~ 80 banks - mainly BCC (RAIFFEISEN) rt too t tor o p p t or o to t r o o op r t o r t r t o t t o or t t ot r o p pr t orpor t r The road is marked and the journey is only o p p tr t o at the beginning.
Cabel 20 banks o t r r pport t to o p t t to t r p rt t to t t o t t o orpor t r
Cedacri ro t r t t p p t or t r t p rt o t t t t o r rt to t t More than 30 banks.
More • t r CSE - SEC Servizi. o r tr t r t op p t or pro ot t ro p • or r tor rr t o o t t r t t rt o t Open Banking Directory to t t r r r t to r o r o r t o o r o r or o t p t or o p r to t po r o t o r o or t o t r r to t r pr t o t p t or t o r o o t r r p t o t r t o t r t rt t o t o r t t t tr t to o r o o r o t t r t or t op r ro o fi r t r r or t t o t p t or r tor o t ro t r t to t tr o o o to t r t t p r or t or t o t o o to fi t r r r t o t o t
38 3. Towards Open Banking and Finance
Fabrick Key Numbers
o t t r t t rt o t r r • There are 16 use cases p t • There are 200 direct customers o r o t r t o t r t • Over 23 thousand end consumers who use services rt t o t o or o t p t or • r t t t tr t to o r o p r to t po r o t o r o over 95% of the Italian-PSD2 market. r r to t • More than 5,000 developers ro o ficia • 473 APIs r pr t o t p t or registered banks r or t t o • With over 12 million monthly API calls. t p t or
FinTech Ecosytems Stories
(ANSA) - Rome, 14/01 STARTUPITALIA, 29/11/2019 Fintastico, 25/2/2020 OPEN BANKING: CBI Partners with itto ia t fi t ta ian in t c Open banking: UBI Banca chooses NEXI To Support Banks And Payment incubator, is born Fabrick and enters the FinTech Service Providers In Offering New ro ot ttor r o t District FinTech Services In Italy And Europe oo t op o t o or to r ort t t t or o t o or t t o o t rt p to t to r op p t or t t r t t fi pro ot t ro p to tr pro ot t t ttor t fir t rt t t o r t o t o t p t N t tor t t to p o r oo or to t r o t o t t o or t r to t o p t or p fi t o t o ttr t smartphone to op r o t t rt p t o o ro t r p t or r po to t ro o partners and investors to a dynamic to op or corporate and retail clients. o r o r p o t r t o N r t or t po o t ot r t t t o o t o dedicated resources in order to implement r t t rt p o t r p t ro t t o t pr idea to industrial maturity.
Kaleyra, 19/7/2019 Press Realise, 7/2/2020 Kaleyra and Epiphany form Fabrick integrates Lokky’s offer Open Banking partnership on its open banking platform r t r t o r o o t r ro r r or t to ro o p o p p pro o r r o r t o o t rt p or t r t o po t op r t o p t to rt fi t r fi o o t o t t op p op t p fi o t to r p rt r p o t o r t to t r t to o t pport r o t r t tr or t o ort ro o t r t o t t or o p to r t o fi t t t o ro p r to or r to o t p o o r t o pp t o
39 FinTech Calls for Fuel
FinTech skills are often a bottleneck – for FinTechs and Incumbents - and Academies start to react
FinTech – International Master in FinTech, Finance and FinTech - disrupting Finance and Digital Innovation t financia o t r t o t r The Master in Finance and FinTech aims to t o t o to pro t t o pro o to t t t t t o p t to t tr or t o t t r pt t r o t o pro r o o fi r t o tr t o fi o or t o t t fi or to o t p r t o t theoretical competencies on methods and t o o r t o o t o o t t p rt o t fi or o rt fi t and FinTech applications and opportunities. The aim t t r p o t p to tr pro o o r to r t o t fi r t r t t t tr or t o o opport t or t p r t o r t p t o o t r o t r t ro o t t rt p fi t o fi t r t o or t o t o o t t t Master in Financial Technologies (FinTech), t o pp to fi Blockchain and Risk Management ro p t ro Master in Digital Innovation & FinTech del Cetif t r t o t o o p t t (Centro di Ricerca su Tecnologie, Innovazione e t o r t o o t servizi Finanziari) dell’Università Cattolica di Milano o t o t t r tr or t fi t r t r o o o o t o tr o t r o r r o r t tto o t t o o t r t fir t t to t r o r pp t o t fi or dedicated to FinTech. It is aimed at three-year or r o p t t t r r r t o to t o o t ro pr t ppro t r r p o to o p t t r tr t to t r o t o o r t pro o tr t t r p rt p t t o o t fi or to rr o t t t t o t rt pp r t t p t t p t t fi r r r t o t o o rt o t o fi r t t or t o o tr t t r pro N r r o p p t t t o r to o t r o
Master in FinTech & Innovation - LUMSA di Roma Insurance Innovation Master I (MII) r t tr t t r r o t o t fi t to fi t p t tr university training course in Italy dedicated to o r t rt t Master in FinTech & Innovation innovation t r t o o t o o t o pro t t rt r t t r t r tor t p o t t ro t t r or op r t t r o rto o pro t or t r p pro t t rt pt r r t tr t or ro t p rt r p t t oo t o t p rt r o o o r o t o o o r t o rt or t to o o t o r o o r o rto avvio a Roma al Master in FinTech & Innovation. Il o p o o t p o o pro tto p rt r o r r t Intesa Sanpaolo Vita and Reale Mutua - is mainly o t r r o ro t or op t r t r t t t o pro t or t pro o ro o r t o tr
40 3. Towards Open Banking and Finance
Italian FinTech Associations
ItaliaFinTech or ro p tr t r t or o association t t r to t r t rt p r op r t t t t o o o o t t t o o p to r p t r r t r p r t o t o or t to o t r o t tr t o institutions and companies in order to turn the pot t or r t ro t to r op t t r pr t t r r po t or t t t o r tor or pro t o o t fi t o o
o o AssoFinTech to t tor r t to o t t t t t o o r tor op t to pro ot o t t ro t t tor
o o t o tor o ttp t or o t tt
o o o rop o o or
41 FinTech Calls for Fuel
4. FinTech in depth analysis
Overview of FinTech business segments Payments and Lending the main areas in terms of volumes. InsurTech, Capital Market & Trading e Money Management are growing fast
t t o t r o r t • p t r t r ro fi t t o o t o r o pro p r or o oo profit t p t r o t t o r o t t r t Not ort r o t rt o r t t r pto rr p r or N • t r pr t t t r o t t r o t r o r r o o p ro t • r t o t tor o r o o p o pro o t t t t r r or t r t r o t t r tor t r o t r o r o t ro t • o t t t t r t t ot r t t t r o t r o r o t t ro t t r o r t t profit t t tr po t ro t t r tor r o • o rt r t r ot t r p t rpr t o t r ot t fi t t r o t r o r ro t t o t to o tor r • t t t t o r t r pr t tr t r t opport t or t r o r p t t t t r r t t o t o t t o r t r r t r o fi - t ot r ro t o p ro o or p t t t tr t t t o t o o t o ro t t t r r r to r ot o o t companies) and it attracts many new players. fi r t o t t o t o p t - o p tor t t op • to t r t t t fi t t t r t o r o t t t t t r o r r o o p tor or r o r o o t tr t r o o t to ro o t r o r r t t fi t tr to op r t r ro t t t t o r o pport o t o or t t o r pr t t t r t t t o p t t to op pro r t r t t r t o t o or t or o o o to r t rofit t p t t p t o po t o r t t r r o t po t t t o o p r to t r to r t fi r r r t t o t t o t
42 Number of Italian FinTechs by Area In % on Total
Payments FinTech is growing but…
Money Management More in Lending Wealth & Asset 7% Management Payments 16% Wealth & Asset Management 13% • Payments remains the most populous 9% Capital Market & Trading r o t to ro 278 12% Lending 17% • t ro too o t to Other Crowdfunding 15% t r t to rop 11% InsurTech (Real Estate).
RegTech On average in Capital Market Money Management Change of number of companies Average Growth High Growth Nearly FLAT r t o p r p t
Shrinking t r ro rop to o t p r or
o r N t o t t r tor
43 FinTech Calls for Fuel
Italian FinTech foundation by year per areas
o o p or t o ot r N o o p
66% 60% 29 55% 72% 28 26 26
49%
20 19
16 16 54% 52% 67% 13 13 12 10 9 9 8 7 5 5 1 1 3 2 2 2
Lending Wealth & Asset Payments Capital Market Other Money InsurTech RegTech Management & Trading Crowdfunding Management
Before 2010 2010-2014 2015 - 2019
o r N t o t t r tor
o t InsurTech FinTech areas RegTech 3. Lending
44 4. FinTech in depth analysis
FinTech: Platforms, AI and Mobile the reference technologies
r t t o o t pr o t o tr to p o oo t t pr t o o t t r t r 2% 3% t r o o p t t 4% p t r t o o Platforms 9% AI/Big Data p t or r t or r Mobile & UX Blockchain/Crypto ro ro o rt fi t 12% IoT t o t 55% Open Banking / o t r r t p t r fi t Open API Other ro t t r r r t 15% o t p tr t ro r t o t t t p t r t r r o fir to t r o r t t
3. o to r p r o t o p ro t r o t o t t o o o t r t o o t o r o t
t ro o t o o p r to t o o o t r t ro t r t p t r t r r o t ro t t t to cryptocurrencies.
o t r t o r t t o or r t o to t fir t p r t t fi o t
t t t o t o p t or o p p or o o t to o p
o r N t o t t r tor
45 FinTech Calls for Fuel
Key relevant technology per area AI growing, Blockchain more relevant in Capital Market&Trading, Open APIs still in their infancy
Blockchain growth 3%
Capital Market & Trading 43% 17% 37%
2%
Wealth & Asset Management 24% 67% 7%
AI growth 3%
InsurTech 19% 22% 6% 44% 6% 2% 2%
Lending 15% 5% 76%
Money Management 12% 36% 4% 44% 4%
RegTech 28% 22% 17% 22% 11%
2% 2%
Payments 4% 22% 36% 33%
3% Other Crowdfunding 97%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
AI/Big Data Blockchain /Crypto IoT Mobile & UX Open Banking / Open API Platforms Other
o r N t o t t r tor
46 4. FinTech in depth analysis
47 FinTech Calls for Fuel
Payments area is the star, but margins are still an issue
Key numbers 2019 Highlights • Many new companies • t o p o t to r • o t t o t o op t growth in terms of number of companies o t o t to t r pr t r o • o t op r t r o r o p r to tot o • t t r o t t • r t t o o p t o o
• Positive revenues growth t t r o t o p r to tot t r r p t Payments Total the area represents the most developed market FinTech t r o pro t r o t FinTech total). number of companies 46 278 o ot • It has a negative marginality ro t t pr o o t t revenues (% on Total) 35% 100% o t t to r or r to r t ro t o ort t t r t r t r r t o o tr t t r tr to t o N o p o t average age (years) 4.4 4.8 • It is the third cluster for capital raised Investments (% on Total) 10% 100% t tot o t o o o EBITDA -9% 2% tot o o r t r t t r t
o r N t o t t r tor
Payments Taxonomy
Next Generation POS solutions VAS for merchants Online Checkout
Mobility and Vending Machines P2P payments & Digital Wallet Cryptocurrency
Payments Solutions Development Other
o r pro o N t o t r p N t
48 4. FinTech in depth analysis
Payments: the business segments and enabling technologies
t r o po o t P2P Payment & Digital Wallet: this cluster includes in which companies operate/work: Next Generation t t o t o o t o r o t o or r t o t t r t t o r o pp t o or o t t p t or t t o t Satispay t t r pto rr t o t o Flywallet Plick Tinaba iConto) or collection op t t r o o t p r Growish Splitit and Collettiamo). Business Segments Cryptocurrency t t Next Generation POS solutions: companies that cryptocurrency (AidCoin r pto rr o r o pp t o or rt o t o p t or Conio Chainblock Eidoo GreenAdress r o t o p r to tot o N o or toot t o o Coinsociety o t o t t o p rop t o p to receive Payments in virtual coins (InBitCoin t o o t o t t o Chainside Tinkl.it). t r t o t o t or r t t t t t Payments Solutions Development: Another o t o to r iPratico and Scloby). This is an new cluster in Payments landscape. It concerns tor t t r t t rt p t t op o t o to tro t p t t r t r t o t or t r o p o r Axerve t o p r PayTipper Creopay Opentech and SlimPay. r t t o tr Other: in this cluster are included FinTechs with VAS for merchants t o r r t to t t t pro r o t o o r t p t or t t Added FinTechs compared to last analyses are r t to o r r to K-Linx t rpr p t or t t r t or r to r to r t t r o t o t Stamp t and loyalty (such as Loyalty24 Domec and Roialty). o p t t r t to o r t r It also includes Epipoli pro r o t r opp p r to t r or to r Checkout Technologies that supports retailer to Other FinTechs are NES Weldpay and Merkur.io. r t t o pt tor t ro o t o
Online Checkout t rt p t t o r o t o to Technologies pro r t o t t o opp r tr o p o p r o pp t o r t t o o to the last report: it is Scalapay r t o o p t t r t t t rt p o o r t p t r r t r o t o t t opt t or o opp r r o r r p r o o o p t or Moneymour r t r r o o p t t o tro t ot r t o o t t r Squeezol and also includes FinTechs that support retailer to and SplittyPay t to r p t t r o tr t o t pro r o r t p t t o r t r o t t t r r o p t t o r o t o or r o Mobility and Vending Machines t t o o t t t o o t o o o t o o p t t o r rt o t o t o or o t t pp t o (such as myCicero OpenMove and MyPass) and t t r o t o t o or In Time Link MatiPay).
49 FinTech Calls for Fuel
Payments Stories
Moving Global FinTechs & Corporates t rt p r o o t o are looking for more collaboration r to op r t t t o t o o p t r t tr o t to p o t t t o or t o o t o t r r tr t o o ro p rt r p t rt t t r t t ro t o the innovation in Payments market and promoted t r r o r t t t o t o t N t r t o o t to or r to pport t t r pro r po t o r tt op t o r or t r t t t p r Corporate and Retail consumer needs. t r t r t t r o r r o r t r t fir t r or r o o p Stories and Trends However Italy records a reduction in investments o p r to t o tr or to More collaboration t t r ro o ot r o o o ro p t or t t t r ot ro t rt p t p t or o t o o t o r t t or tot o t o o r o o o t o o ro p r t t tr t to r t o t o t t Demand is maturing: Italian operator Tiscali has announced that italian users become more digital t t r t t t r t t r rtp o o r t p tr t o r r t to r p r t o t o r r o r p t ro p tr o t t or ro o t r t t t t t o o r ro o fi to t r SME market). t t ro o o t t r t r t o t o Globalization-italian Payments pro to r t t o ro o r appealing for foreign players p r p t pr t or o t t o t t r t o t o pro t t tr t t r t r r t ro t r r t op r t o o t t r o o r t t t t o t o r t or r to r 3 Italians make online purchases or Payments and t t o o r t o o t o t o t o t o fir t t t or t o r o t o t r o r t o o r t to r r r o t to r p po t t r t t fi o t o p fi t p o p r t r t o or p r to r r ro o r t t N italian FinTech. t r t t o p t t tot t r
SMEs target: more dedicated solutions r ro t t r r o o t o op or t or p rt r r r to p t or op or pport r t r t to r o t o t o o N t r t o o t o to r t r t p t or to o tor t o t r or t o t o op t
50 4. FinTech in depth analysis
Payments News Room
Corriere della Sera, 23/05/2019 ANSA - Rome, 14/01 04/2019 FinTech: the Bregal Investiments fund OPEN BANKING: CBI Partners with CVC-backed SisalPay invests in Italian enters Epipoli prepaid cards NEXI To Support Banks And Payment app MyCicero r to Service Providers In Offering New ot r o ro t o o FinTech Services In Italy And Europe t rt p t p t or o t t p rt o t o pr t t ro p t t t or o t o or o o r o o o t r t t r or t t t r t t fi p r t t o t t p po tr pro ot t t t t o t to o t fir t t t p po o t o t p t N t o ro r o r t o o t o t port t rop or to t r r r po o ro p companies in the prepaid services to t o p t or t t t t t t o fir r t p po o r t o to op r SisalPay will to accelerate innovation and tto t t o r po to t ro o t t t ro t o p o r r t corporate and retail clients. p rt p t o r o p or r t ro t ot t r o N r t or t o t t t pr or r t t o o t fir t op r t o dedicated resources in order to implement t t t o o p r r t o t t r t o pr t t t t o t pr t po t o r r t r t o t o o t r t t r o myCicero App in SisalPay stores. fi t tor t
17/02/2020 20/02/2020 Moneymour bought from Klarna Tiscali enters digital Payments market o o r t t rt p with MistralPay buy t t pro o o t t o Italian operator Tiscali has announced o to t or r t t t t r t t t p o fi r r t t r r r t to t o o r r p r t o p t ro p o o r t o pro t tr o p o t o r t o t t o o pro t o t o to t tr t o r port o r t rpr p t r t t individuals in Italy. t ro t o t t r t po t r o o t r t o t o pro o r which had invested in the company in tr t o or o ro op r t o rt r tr t o t p r t r t rt or t or t t p partnerships with Musement and Nexi. t o o to t o p t or o p t t o t o o t o o t
51 FinTech Calls for Fuel
Money Management on the right track
Key numbers 2019 Highlights • t ro r • r ro t o o p • r ro t t r o o p t o o o o t • r profit • t t t t o tr t o o • Revenues are growing fast t • o t t r p t r o t r t t o ro o r t o t r t r p t r t r
• N rt t r t o or r t t r p t r t r o o t o p r to t tot r fir t or t t o t t Money Total to t o o o o Management FinTech
• t o o t o p r to t t number of companies 25 278 r t r t o ot o r ro t revenues (% on Total) 6% 100% ro t r r N o p o t average age (years) 5.3 4.8 Investments (% on Total) 41% 100% EBITDA 18% 2%
o r N t o t t r tor
Money Management Taxonomy
Assisted Savings Digital Wallets ti an in a ato
Management) ic om a i on n a m nt & Gamification Retail (Personal Financial
n in n oicin nt i inancia ana m nt Treasury Management Management) SME (Enterprise Financial
o r pro o N t o t r p
52 4. FinTech in depth analysis
Money Management t
t t r r t t o r t t o t r t t t t t opt o o o t p r t r r to t r t tor ot r t o r Assisted Savings, Digital Wallets, Multi-Banking aggregators, Price comparison and Engagement Price comparison t or or o pp t t an Gamification t t o r o r o p r o r t r t p pro t r to r t to r t r t t t opt o t o or r o p p rt o Online Invoicing, Treasury r t r t t o r r t o pr Mangement and Enterprise Financial Management p ro t r t r pt o r o r pro t r to pr t t t Switcho, WalletSaver, Trovabando and Pensionarea. r o o t o p r to t tot Business Segments n a m nt & Gamification: these are applications Retail t t pr ppo pro t o t t r Assisted Savings t rr o t t o Gimme5 p to r t t t or r t o r o t o o Oval also helps to p oto r p r pt t pp t o to r t t r p ro t t o t r t o p r t o t r pro t t o t or t o o t t pro t r to po t o t o p r t ro o t r pt o or r to r t r t fi t o
Digital Wallets t t t o r o Vuolly p r t t SMEs p to r t fi t t r t r t t to p Spreadoff lets customers Online Invoicing t or t o t rr o t o t pp tro o pro tor Dindarò ro p p t t p t o p r r FattureinCloud, Soldo t r t o r or Fattura24, GetYourBill, MenoCarta and Yerp. fi t p to t p t or r o t Enterprise Financial Management r t o t r t t t o to t o pro Multi-banking aggregators t o t r o p o t o only Utego r t o t o p r r t o p t to p t pro o Follio, Vipera, Zillions, IoFatturo, t o o fi pro t r MyFoglio and Maxtrino populate the sector. Soldo t t to to r p fi t ro r t t t t o t o o tor o p r o o t pr p present here as well.
53 FinTech Calls for Fuel
Money Management Stories
Personal Financial Management Enterprise Financial Management, Driven By Legislation And Evolving With New Services Multi-Bank aggregators are coming t o t r r or t t po t to r t t p o o o t o t o or t o t ro r t t ro p t or or r t o o t o t o o pp t o t ro t fir t o tr t rop o t to t tro t o o t t r t to tro o tor or pr t tr t o t r o o t o t ro t t o r t r t o o t the total turnover is quadrupled since last year. t r t t r r ot r t o o t o o t p t to r ro t r o t t r t o p r prop rt o N t t o t t o pt r t r o r t t service only to Illimity customers. r tor o t o or t t r r r or t op t o Pfm is a starting block for FinTechs o t r or t r r o o t o o t o or to o p t or pport t t r r ttr t o t o t t o tro o to t r t o or pro t ro p too t t r o o t o o t ot r o tt r o t ro t r t to t to r p t t o o o t o o t r t t o p t p r o pport t t p o t o t p o t r fi t ro o t o t t r p o t o o o t t t to t pr r or t o o t t p r t r t t t p r o fi tt t o ro o t to t p r r o o r t t channel to improve relationships with customers. t t oo to r p r t o t o r o t o r t p r t t rt po t p r t t t r Money Management Is One Of The Smallest r fi p rt r or to r Segments But Is Growing And Receiveng t rt p r t r t rt to (International) Attention t t opport t ro r t t p t or o to ort o r Stories and Trends or r t o o t rt or r t p t op t Partnership r fi o r or or t o t o p to t p t r top o t Going Global o o o to o o t r tor ro t to o o t ot r to r t o r t to r r t o p t p r Exit t rpr t fi t t r to r t r r o p t t t o r o t r o o t centrality in an holistic approach to the customer. acquisition to enter the Italian market
54 4. FinTech in depth analysis
Money Management News Room
Challenger Banks, 04/2019 Business Insider, 02/02/2020 TechCrunch, 07/08/2019 t o co ct financin Fatture in Cloud, the story of Soldo scores $61M Series B from Invitalia’s Smart & Start, while Daniele Ratti who transformed for its ‘spend management’ the 200Crowd collection a student job into a company platform for businesses i to a worth millions of euros o o t t t o r t r tor r o t oo t tt o t p o t or r t r t t or o r t t fir t o t o o o r t r t t o o tt r o o t ro tt r t r t t rt p t t pp to o t o t t t rt p p t t p rt p t o ro r t r t in recent years. pr o r o t o t r to o p r o r fi r to r o t r t o port o ro p to ot t ro t o to t o t t fi ro o t o r r p o t o an explosion in the last twelve months r tot r t o o t ro t o t to t tr to or o t t rt p to o or r to fi t pro t tro o r t o o r o r o t o t or r t rt p to o r pr o p r t t fir t o ro p t t p o t r o r o o o o r t r p o r t t o o ro t ro t port o t or o ro t o ro t r t o r o t o o o to r r t rpr t t ro t t rt t o p r r t t r or to p o p r o r t to o ro ro t r or t o t o o r t r t p rt t p o t o t or t o p to r t ro to o o o o t tr t p t r t o t o r pp or ro ro p rt t or p pr p t r r t t o t to p o p rt t t r o t t or o tr tor
55 FinTech Calls for Fuel
Crowdfunding Models
Equity Lending Donation & Reward Crowdfunding Crowdfunding Crowdfunding
Wealth & Asset Lending Other Management Crowdfunding
Web Platforms
56 4. FinTech in depth analysis
About The PropTech in the FinTech Landscape
or t p rpo o t r port r r Proptech startups active in Italy have almost tripled o ro to o Proptech / FinTech o t t r r o Real Estate Lending Crowdfunding t r port o r o t p rt o t t directly involved t t fi t t t o Real Estate FinTech t o rop t Real Estate Lending Crowdfunding t the Real Estate Equity Crowdfunding t t Real Estate Equity Crowdfunding t t
o r t t rop p o t t r o o t ot r t o t r t or t tor o rop t t r ro o r Non-FinTech Proptech (Examples) r o o r rt t t
o r rop o tor o o tr t r o t per il Real Estate. Politecnico di Milano o r pro o N t o t r p
57 FinTech Calls for Fuel
Wealth & Asset Management Is Evolving And Attracting Many New Players
Key numbers 2019 Highlights • Many new companies • t ro o tot r t t • pro t t t second smallest segment. But the turnover • t ro o p r o r t • t t t t o tr t o r t • t o p ro
• t t o t r o new companies tr o r or t t t
• po t r o t t t o p r to t tot
Wealth & Asset Total • Real Estate Equity Crowdfunding is a new – Management FinTech r t t o p o number of companies 46 278 t r o ot • Equity Crowdfunding is a very dynamic ro t segment p t o tp t t t tt revenues (% on Total) 6.2% 100% t t r o t r o r ro t r r N o p o t average age (years) 4.8 Investments (% on Total) 36% 100% EBITDA 8% 2%
o r N t o t t r tor
Wealth & Asset Management Taxonomy
Equity Crowdfunding Intermediaries
Real Estate Equity Crowdfunding RoboAdvisor Tools/Enablers
o r pro o N t o t r p Many new companies N t
58 4. FinTech in depth analysis
Wealth & Asset Management t
t r t t t t RoboAdvisors o o or r t p o fi t t t r r o t t o pro fi or to fi r t tor Equity o t t t t Crowdfunding, Real Estate Equity Crowdfunding, t r t o t to t o or t rt fi Intermediaries, RoboAdvisors, Tools/Enablers. t t o r p r or r o o t r to r port o o Business Segments r t or to t to r profi t t o Moneyfarm r t o t p t or Euclidea Equity Crowdfunding t ro t o t p t or t t or t t o o r o pr t o p r t to t r t o r t r o o t tor ro p o p op or t t t t r t r opt t ppro o r o t t t o p r to t tot o p r t o t pop o ot or t t to tr t pro t r r to r or t o to to r t o rt or r AlphieWealth. Real Estate Equity Crowdfunding o t MC Advisory o o t r t o o ro r r to t r t o o or too ot r t to t to r t ro t t r o r t t to pport t fi or pro t t o o p r t ro p o po o fi o Tools/Enablers t r r o t p o too which (Walliance Concrete House4Crowd or t t t p o t o o BuildAround r t or t t p rt fi t to op o t r to t ro p CrowdRe is pport or t t fir o o t t o p p this cluster: Finscience Finantix iFinTech Wavenure pport pro t o t t ro Fundstore Deus Technology and Mc Advisory (in while RealHouse op to t o to t pr t o o or t t to t o o t t o r t t ro t ro t t r o t t o t o t tor t Technologies t r t to r pr t r t or r t o r p o t r t t r t t p tro o po t o web platforms r t t o o t r o Intermediaries t o t t o t o t t t t ro tr po t o o or o t ot r t o o or or or fi o t fir t t p o to t t t t a tificia int i nc t t o o r pr t t o t t pr r t o o or t r Fugen OnlineSim and SoldiExpert. o t o to t t r
59 FinTech Calls for Fuel
Wealth & Asset Management Stories
A new star is born: the Real Estate tor t t r o t o t t t equity crowdfunding ro to t o ro t o t t t t p r t r Proptech Is Developing In The World • ro o fir t fir t o t o t o t r r rr t t rt p p t or ot o o r o tr to t r t r t o t prop rt r t • ro t o Aim Italia o o tt pt to r pt pro o t o tot t rr t r t p r op r r r t o ot t t t top t o t r r t r tor r t t pro o r o p t t pr o r ro o tr t r t o r tr t op r t r ro t t r t t t o t o p r r t to t ro o r r o t t r o tr t o o o r startups related to the Propech area (sometimes also o r t t o tr t t t o o pport t t ro r o o r Roboadvisor continue to grow o p t r t t t o o t r t t o t o to t pr o r port p t t t r p t t t o t tot o o o fir t o rop o p or t or t t o o r o t fir t o t o o po r ro o t t r r to t Italian to r t t t t rt p t r tor market t t t t t the assets managed by rp t o r or or o robo advisors exceeded $ 400 million t r t t t o r r t r t rop o t o r p r to r t r ro t propt rop o fi t r r t p t t tot ro r o p t to t t rt p r pt r t t o t p r p rop propt Stories and Trends t t r o Go Global o r r pr t o o t o t o t o t r rop or tot t r o r o ro r t p to r r t p or o o r o ro o t t t rop propt t r p t t o r t ro o t r t r o o ot r r o p t r p t ro t t o t r o t fir t r ro o or r rt t r t r Proptech Lands Also In Italy r t t t o o r o t t N t t t ro o ro t r t tot t o t o o p o t r Exit o o o o t o t o t r o ot pp t r t op r t o o or r o o tot t ro r t r pt r r t r o t t o t t t o t o o t o t port t t o t t ro took place in Italy. p r t t o Expanding Offering rt o t to p t o r o t tot t t fir t o or t o o t pro t t to o t r t t ro p t or t o profi to r t r ro or o t o o t t o p t t ot o po t o o p t r o t r t o t r r t r t o t t ro t t r t to ot o o fi t profi t ro p t ro equity tokens Listing On The Stock Exchange r ro via blockchain (Ethereum). o t ro t o t o o o t o t t t rt to r t r Equity Crowdfunding – A potential new source of funding – Still little but growing AIM Italia - Alternative Capital Market t r t or t p t t t ro p t or r t ro r or o o t r r o t t r t t o ro o p t or t rt p t o po o t o p t ro t pot t r t on the FTSE AIM Italia index. r o ro t o r t to o p t t o o r rt o ro or o fi r ro o p r o t tor t t N N
60 4. FinTech in depth analysis
Wealth & Asset Management News Room
WIRED, 26/03/2019 Challanger Banks, 26/06/2019 FinTech District, 02/2020 i t fi t in c Intesa Sanpaolo enters crowdfunding Walliance goes to France company to be listed on the Milan t p o o t r ro or N p Stock Exchange r o t r r o p t o p r t ro p t or to or t op r tor to pr p r t o p t o t r p t o t t t ro tor t t t p t or r t r t r o t t t o t r p t fir t t o r t t t t to fi op t pro t port to or o p t or t t fir t o p to tr t o t o ot t r t to r t r t t t t t t t t o o rr o t t ro N t t opport t t rt t to t r t orpor t t r p t ro o r tor op r tor ro o r ro o t p o o o t o t po t o r p t o t r t t r o Center and which invests in FinTech alternative and transparent way. It has r p to p t rt p o p r t t t ro p op r t o t t r t t t t o p t or p t t or t pot t pt r o t o r r o r pt or t tor t t o r t or t t t or o t o to t o t ro o o r o o r o ro o t ot t o to or pport t or to or t t ro ort o r o op t o t tr p t r o ro o t r t t r o t t o rt r r t o t r t o t to o t r p t o or t to t t t r p t or p o ttr t r fir t tr o t r t or o tor t p r r
Centro Studi Moneyfarm 04/02/2020 BeBeez, 01/2020 Moneyfarm exceeds a billion of The Italian equity crowdfunding assets under management platforms raised over 65 million o r ro t o t euros in 2019 t op t t t t important milestone. The assets ro p t or r o ro o p t or t rt p o o ro t t t r o t o o r rop ro t o r to tr t o r t t to o p o r o o t r t t o The news closes a particularly positive tor t t p r o t o to o r o t o t t t ro t t r t to t o ro t t o p r to t o p t ro o tr t too t o t opport t to t r t p t t t t o r t r t r t t p t or t t r p r or r t o ro ro o
61 FinTech Calls for Fuel
Other Crowdfunding: Weak numbers but interesting for social impact
Key numbers 2019 Highlights • t o t o o profit or t o • t r ro o p o t • t o t r t t t p t or r to t o o p o tot r r ro to
• Added companies compared to the delisted: +7 new – 9 delisted = -2
• N t r ro t r o t r ro o p r to tot • o t o t o p t t r Other Total ro r r no ofit a ociation Crowdfunding FinTech o t r o r o tot r t o t number of companies 34 278 r o t tr pro to o ot ot fi t o t t o ot ro t r t p t o t t r ro r revenues (% on Total) 0.8% 100% ro t • t r t t o r capital raised r r by these kinds of platforms for an amount of 57 millions of euros since the beginning of N o p o t their activity. average age (years) 5.6 4.8 Investments (% on Total) 0% 100% EBITDA -13% 2%
o r N t o t t r tor
Other Crowdfunding Taxonomy
Donation Reward Retail Crowdfunding
o r pro o N t o t r p
62 4. FinTech in depth analysis
Other Crowdfunding t t o o
t r ro t r o po o o p o t o t t t t pro t t t t r or o pro t t ro t r t r r pro t or r r t to o t o p t o ro r r t p or o r t t o r r t Donation t r r o o rt r t Reward and Retail r o t r r t pro t Bandbakers and Musicraiser o t o r p t or Education (School Raising oo Book a Book CrowdBook Cineama r (Ener2Crowd port Triboom Werealize). Business segments Others FinTechs are: Ulule Finanziami il tuo Futuro and Derev. Donation t t o t o t o to t t t r o t r ro o p r to tot o r t r tr t o t o o t r r t rt p r t r r op r t t ro o o t o p t o o o t o r ro o r o pport r t pro o or dal Basso and Eppela are the main FinTechs in this area pro ro t p rpo r t r t o or p t r o o CrowdChicken Woop o t o ro p t or t t t r Innamorati della Cultura Ginger and Wishraiser. o r r or o t t r t r r o o t r o o p fi rt r t Retail t ro o r t t port pport r t t pport t o r to tr t r r r p t r t to r r o t r port o o o p t pro t t or t r r or r t t o o companies: Citybility and Let’s Donation. o to pport r t 1Caffè Buonacausa.org Helperbit Kendoo Laburiosa Open Genova Crowdfunding Rete del Dono SocialLending Technologies For Funding and Universitiamo. t o o o t r p t r Reward r o r r to p t or o r p t or t p r t pport r o pro t r r r o
63 FinTech Calls for Fuel
Other Crowdfunding Stories
p t r t r ro p t or t The growth of capital raised through o o ro crowdfunding platforms
t t p ro r r to • Buona Causa r r p t or o • Eppela 14.1 r r t o p t p fi t • PdB
t r ro t rt • Rete del dono • For Funding t t o r or fi t ro t t 11.6 r o t o tor o t ro p t or rr to t t t o o ropt p t or r 2.5 pr too to ort t r pro p t o r t r t t t fi t t r t o tor
Raising capital in the other Crowdfunding 43.1 r t t r ro tor r t r o o or t p t or ro o r to t t p t r r r to r tr t r o op r t Total capital raised p t or until 2018 r p t r t ro t o t r Total capital raised ro p t or o t to o in 2019 o ro t o t r r p Total capital raised by the main donation/reward op r t t ro t o o p t or ro o platforms in 2019 o t o o or pp o o o ro t p t r t ro t t r ro o t to o o euros.
Capital raised by each sub-segment in 2019
Donation based platforms o o ro
Reward based platforms ro
Donation & reward based platforms o o ro
Retail platforms ro
o r N t o t t r tor
64 4. FinTech in depth analysis
Other Crowdfunding News Room
05/2019 02/2020 Produzioni dal Basso, Rete del Citybility: a FinTech focused on dono, For Funding, Eppela and Circular Economy Buonacausa: the biggest Other an to it i it t fi t ocia Crowdfunding platforms in 2019 responsibility shopping community o p t r t ro is born t r ro p t or o t t t o po t ro p o t t ro opp p t or t t ro o p t o o or r o r t fi or pp o t t t r r pport or to r r o t o t o o t o o t o t profit o t o t r p or p t t ro o p t or pro t t or o pro t r r o t t po t o o t or t r to op tor t t r r o t extra money to support a no- r prot t o profit o t o r t ro t to r o or or prot t o t repeated purchase. Finally even small pport o t o o pro t t or
65 FinTech Calls for Fuel
Lending is growing and evolving but investors are lacking
Key numbers 2019 Highlights • ro t op t o r r t t • Many new entry o p o • N t t ro or t t o • o t to t t r t t t t two exclusions. opportunity
• r ro t t t o tr t o ro t t o o t port t r t r t
• p t o o p r o o p r to t tot o r t t po t Lending Total profit t FinTech
• t ro t o t r t number of companies 43 278 r p t o r r o ot ro t • t t ro revenues (% on Total) 33% 100% t t t o o ro t r r N o p o t average age (years) 4.8 4.8 Investments (% on Total) 6% 100% EBITDA 6% 2%
o r N t o t t r tor
Lending Taxonomy
Enablers Competitors
Risk & Rating Real Estate Lending Crowdfunding
Circuits & Enabling Infrastructures Business Lending
Intermediaries
Loans Comparison Consumer Lending Invoice Financing
o r pro o N t o t r p Many new companies
66 4. FinTech in depth analysis
Lending t
t r t t t Competitors t r r ttr t to t t t t o t r t tor Risk & Rating Real r t t t o Estate Lending Crowdfunding Consumer Lending Business Lending Invoice Financing Loans Business Lending o t t t Comparison Circuits & Enabling Infrastructures. A r p t or t t o t o ro orro r rt r o po o r t t p o o ot t t t o t r t o p t Enablers to o p r t r o t p t or t r Competitors and Intermediaries. t o o t r t r r t ort They are BorsadelCredito.it Prestacap October Enablers and The Social Lender. Credimi (active in the r o o p r to t tot t t op r t r t t fi o fi op r t r o tor pro t or too or t r t o t fi tr t o t r r r t pro fi to MDI p t or p tr pr r fi Risk & Rating o r r t or too op t r or t r t ort or r profi o ot r o p r o t t r Consumer Lending: are MotusQuo Smartika o financ Leanus Creditsafe Pythagor Younited Credit and Prestiamoci r p t or t Algoritmica ITFinance t Ecomate t o r to t o t pro t t r t t t o t o ro tor t o r p t o o r o Circuits & Enabling Infrastructures: The FinTech r t pp t o r t rr o t p r o o p t t r t o t pro t or opp Soisy t rt t t or r t t to t to o t o to r tp t ot r t ot o p Talents Venture operates in the student loans market. are Sardex o r r t r t o o p t r rr SalaryFits o p t t Invoice Financing t t o r p t or p t r tr t r t p or t t fi o o r p o o o to Kubique credits. These are Credimi Fifty CrowdCity op o fi p t or CashMe Workinvoice.it CashTrading t t t r t t t MyCreditService and Anticipay. Credimi is the only t o o p o t o Habacus r t o to p r o r t t ot r t oo to p t t o loanXchain and r tp or tor t Fifty p Wizkey t o o r tp or in Supply Chain Finance. or o t r or t o r r t r t or fi t t t o Real Estate Lending Crowdfunding p t or EU4SMEF t r t poo p t or t t orro r o to o to to p fi or FinDynamic t t pro t t ro ro r and PlusAdvance t o r tr t r t Housers Trusters Rendimento Etico Re-Lender fi o t pp and Recrowd.
Intermediaries o p t t o ot t r t r or o p t tor t t r t t t t r t r t o p t o fi r o p o r t r pro t to to r ro p o po o t Loan Comparison t Gruppo MOL and MutuiSupermarket.
67 FinTech Calls for Fuel
Lending Stories
SME lending maintains supremacy The real estate lending crowdfunding is a new segment
n oic financin a o r t t o tr o t t t t r t o t port t t t r o o t t p rt N N o ro t o o t a second in WEALTH & ASSET MANAGEMEN (see tor t o t dedicated section). ro t o r t pr o r o t o p t t ro t tr t o o p r to t o o t r t t t to t t rt t r t o t pr o r r fi t fi r t t t r t tot o o o o o t to o t t t t rot t o o t t r o t tot t o r t t t r t o r t r po or o t t r t r t t o r t t r o t o o o t t r ot r or o t r t fi r ro t port t o ro to o Despite many young companies and high levels of risk, o o t p ro t tr t m nt a a o iti ofita i it r t o tr t o t r ro Stories and Trends Business lending is following t tot to t o Partnership r t t o tr t o o t t r o From monoline to mainstream: Credimi launches new o o p r to t pr o p r o r t ro r t or or r to t rr t t r o r t rt pro t o o o to r p t r t to t t t t o t r t p o t r t o ot t t r t r t SMEs are “The Target” to r o t t r t or r t or p t or to r o r or t or to r o t fir t o o p t or o t t rop r t t o t t o or t o t fi o fi r o r o fi t t t t rop The consumer lending is starting to develop Investment Fund.
t o o r t t o r t r o t r t t o t to t o t o t or t t t o tor o t p t or o ot o t t ro t ro r to t t r o r o o rt o r t o o o r r to o p o r t o tr t o o t t o t o t t r o o to o t tot r r o o p r to t r t o t pr o p r o o p r to t t t tr o t t r to fi t t t r t o r t o o t t r r
fi t r t p r t o t o o port t o ro t o t o o
68 4. FinTech in depth analysis
Lending News Room
Challenger Banks, 10/06/2019 BeBeez, 09/2019 Fintastico, 02/2020 For UniCredit a new FinTech FinTech, the Sardex platform LoanXchain selected by Block.IS alliance with FinDynamic celebrates half a billion credits o o t o or t o t transacted in almost 10 years o t rop t rt p r tr t r t r t r t t t o p t fir t o t r t t p t associated companies and phase and who will move on to the r o t t t rt p pro o to oo p r t t o p t t p r o t o r t r t o pro r t o t tr t o o r t o o ort to ro r p rt r p r t transacted. op o or t ro t t t t rt p r t rt r t o or r o t o o t t t r t t includes Commercial Credit Circuits pro ot t o t o p t or o t r o ot r t r o t o o t r tor r oo o t or p t t t rt t t t t o t fi opt t o or orpor t to r r o r or o o o r o op p t or t t ot r r t pr r to t r to t r ro o ro ro customers and supplier companies. o t pport t t r o
BeBeez, 28/01/2020 n im nto tico t fi t ta ian real estate crowdfunding that invests in NPL, collects 6 million euros in 2019 with 26 real estate projects to t o t fir t t r t t ro p t or t t t N r o t o r t r o r o r t t ro t o o r o t to t o rr o t r t t pro t o r t r profit o or t t t o r o r o ro t t o t opport t propo rt t r to achieve this result.
69 FinTech Calls for Fuel
Capital Market & Trading is growing an ofita it ac o n in
Key numbers 2019 Highlights • r t r o t r o r t r oo ro t r • p t r t r o p o t • r ro t t r o r o to r o o p o • p t t r t profit t ro t t r o tot r r ro to investments • p t o N t or o o t o t o • o r t t t o o p t to t o t t to t o o or tot p r t ro t o
• Positive revenues growth r o p r to t tot r o p t r t r o p r to t tot p r t Capital Market Total & Trading FinTech • t o t o t o r or number of companies 30 278 t t r t o ro o o ot o ro t r r or t highest marginality o tot o ro t r revenues (% on Total) 6.1% 100% ro t • t p t t r t profit t o t r r t r p t r t r N o p o t ttr t low Venture Capital average age (years) 4.9 4.8 funding o o tot ort Investments (% on Total) 3% 100% p rt to t p r t t r o p t r t EBITDA 19% 2%
o r N t o t t r tor
Capital Market & Trading Taxonomy
Marketplaces Data Providers Financial Social Networks
Trading & Tools
Crypto Investing & Trading NPL Trading Other
o r pro o N t o t r p N t
70 4. FinTech in depth analysis
Capital Market & Trading t t o o
t o o o p t r t o r t port o o t t Marketplaces Data Providers Valuecube and Diaman Tech t r o Financial Social Networks Trading & Tools Crypto o p r ro ot r o t t t Investing & Trading NPL Trading and Other. pro propr t r or t to t r t t t t tr t r o ot o Business Segments t fi r t
Marketplaces p t or t t t t Crypto Investing & Trading r t t p t tor t rpr t t o p o o o t t r r o p t t p t o o r pto rr t Brightnode o p to p t 2Meet2Biz Cardo t t o p t r t o to r o p t r t r o p r to t tot Epic and Rataran. Criptalia p r to p r o t t p t or TheRockTrading that delivers a tailor- Data Providers too o t r r fi op r tor or t r t o o pro t r t or r pto rr or t pr t o rt r t t or tr r t o or or activities (Analysis TradingView FIDA and Re- Analytics). BigBoat o p rt o t t r NPL Trading ot r t t r r o p p o t r o t o p t t pport t fi p r r pto rr t t o o t t o No p r or o DoData and Cherry r tp or Financial Social Networks t and Alternative Assets (TXC Markets o compared to the last analysis. It includes two propr t r or t or or pr o companies (MarketHub and UCapital24) that or port o o pro r t or t o o t t r t o r p t or Other t t r t r r o p t t o r r t r opt r p r capital market related services. They are Arcoba o t or r t to pport t ro t o t o o t r or t o pro p t r t t ReFees too or t t o o investment commissions). Trading & Tools t t t t t r t r o o p t p t r t r t r t o po o Technologies o t o t o r o t o to pro t t t o pro o t o t t too t to t tr o t o t o r o o t o p t r t ad Euklid FinTech4i and OpenHedgeFund t r t t r t r companies that develop AI-driven investment o o p t o r o t o tr t or t fi r t MDOTM t o o p t r or ro t Axyon InchCapital and Kellify) and FinTechs o t o o o t o o t t r o t r o t o to or t o r t to t t o r pto fi tor pro o t or t o t o r o t tr r t tor o orpor t fi o r t t o o
71 FinTech Calls for Fuel
Capital Market & Trading Stories
FinTech innovations are re-imagining Investments still low on the sector capital market sector p t t r t r or t p t r t o t o fi t r t r o r p r r ro t p rt o t p t r t ro p t o t r t r t o t o acquisition to data and analysis services. r o p r r fi t t t o r o r t r o r t o o p t r o p t o ro t t t t o o ro o t t oo o o t r t p t r t r r o r op t o t tor op or r t r t r pro tr t t p fi t ro t r o t o Capital Market FinTechs through stock exchange o to t r r ot o r listing and investments gained before operating o p t tor o tr t o p r t p rt r t UCapital24 t o t to t r t op r tor r or to p t o or o t o o o ro fi pro r pro t r t t TXC Markets p t o op r t o t t o r o t r p t t r t o r r r r t o r to t o t t t ro o o o ro ro t t ro t o t o r t p t r t t o p t o o t o pro t t t fi fi t p o o t t o Other Collaboration o p rt o t r oo Italy: Competitive arena gets wide t r t t o ro ot N The Italian scenario reveals a similar trend with a r t or t t o o t o o t t o o o p t t o r data analysis services and solutions in order to opt t t o t t t o r t p fi r t r t o t t r t r t t rt o t r r N r o t o r r or t o area in the FinTech scenario is the european r t o o r t r r t or to o p r or o p fi t pr t r o t r companies located in Italy that operate to speed up o p r or o t r
AIM Italia - Alternative Capital Market t r t or t p t ro r or o o t r r o t t r t t o po o t o p t ro t pot t r t o t t
72 4. FinTech in depth analysis
Capital Market & Trading News Room
11/2019 11/2019 UCapital24 listed in the AIM market a c an a t a fi t o n o fi o t or 1,2 millions of euro, hits the market p t o t t t fir t TXC Markets has developed an tr t t r t to t tr p t or t t o t r t t t t to o t t o o t fi o t o or r o o t p t or t t o o t t t tor t t Italian Tax Claims. players to operate in the market with t r ro o tt tr t profit p t p o o ro ro t r r t or t Italian market.
73 FinTech Calls for Fuel
InsurTech is looking for more collaboration
Key numbers 2019 Highlights • o t r o o t • r r r o p t • r t t r t o tot r o t r • o or t o op fi r t opport t ro to • p t or o t t o o
• Few new companies t o o or
• Relevant growth of revenues r than the Total FinTech. r o r o p r to t tot • Very low the investments o o ot InsurTech Total t t FinTech
• They are very young oo number of companies 36 278 o ot • EBITDA is low t r r o ro t companies. revenues (% on Total) 12% 100% ro t • o o t o t r r N o p o t average age (years) 3.7 4.8 Investments (% on Total) 5% 100% EBITDA 1.5% 2%
o r N t o t t r tor
InsurTech Taxonomy
Competitors Enablers
P2P Insurance Infrastructure – Backend Data – Intelligence Micro – Instant – Product Insurance
Car – Mobility Claims Life – Home
Home
Intermediaries Life Pet Marketplaces – Brokers
o r pro o N t o t r p
74 4. FinTech in depth analysis
InsurTech t
t t r r t r r International Hippocratica Imaging D-Heart and t r r tr t r t tor Healthy Virtuoso or t o tor t r r namely P2P Insurance Car – Mobility Pet Insurance Morpheos Iooota and SysDev. Marketplaces – Brokers Data-Intelligence Claims Micro-Instant-Product Insurance Life – Home Claims o p t t p t pro o Insurance rt r o po o r r port r ot ot or t t p o r t o p t r the user and the insurance company. The InsurTechs Insurance companies: Enablers, Competitors and o t t r r Easy Claims Claider La Perizia Intermediaries. Online and Insoore. Insoore adopts a unique o r t r oor r t or r o t p t r o t t t o r o r o p r to t tot Enablers insured vehicle and send them with their smartphone to the insurance company. r t t op r t r t r o p pro t too or Auto-Mobility t o t r t or t r o t to o t t r t r t t prot t o t tr or Infrastructure – Backend: InsurTechs that provide r t t o o to r r tr t r to o p insurance (Tiassisto24). t ot Spixii r t r t o t Namu and E-leads ro p tr o t t o r General Expert). Competitors
Data – Intelligence t or r pr t RiskApp r t t t t o t r t t rt fi t to t t r r o p t t trop t t r p t r r InsurEngines Auto-Mobility t o p t tor t r to pport t t r pro t ro t Prima.it t o r t r p t r to t o t r t p rt t po or r otor
Micro-Instant-Product Insurance: InsurTechs P2P Insurance r t or p t r t o tr t o o o t o t o ro p oop r t r pro t or t or N t r prot t o ro p pro t t t t o po pr to t r to t r r t r o Neosurance op o t t o t o t pr t t o ro po p ot fi t o or t o o r p rt o t r or t ro rtp o t Axieme. o o o o ro po o t o o Simplesurance Pet r p r tr t ro t r or rtp o pro t or p t r o t t r r ptop t o o r pro Assibau and Dottordog. t p t or or t op t o o demand policies and directly sells micro and product po Lokky ro po to Intermediaries pro o o p t t o ot t r t r or Life-Home r t t op pro t o p t tor t t r t t t t o t t o t r or o tor t or r t r t o p t o fi r r t t prop rt o t r ot t t o p o r t r pro t to to r o t r t r r too ro p o po o Marketpacles and Brokers: o ot t r or t tor RCPolizza.it Fit2You Coverholder MIOAssicuratore these InsurTechs are Biomedicallab DigitalTech Victor Propensione.it and GrifoTech.
75 FinTech Calls for Fuel
InsurTech Stories
Investments- continuous positive international Insurance and InsurTech - in search for collaboration trend but contained growth in italy fi t ta ian n c icat ta ian : At the end Global investments are growing t t o o No r ttor r o pr t t ttor t t r rt r o t tot o t o r tor o p o t o r r r t t o t t t p t t o o o t o o or o t o t o o t t t o r p r o t tor r tor ttor t r or t t o o t o o o r or t ttr t tor p rt r t rt p po to o o t o t t pro ot o r o r o o r r t t ro t p t o t rt p ro t to tr t r t or o t propo t Few and concentrated investments in Italy: In insurance market. t t t t r r o o o t o or o o t Partnerships are key in supporting the renewal of the o ro o or oor o t insurance sector. In Italy we are still at the beginning or t o tot t t N At international level we can highlight a couple of relevant opport t t o ro ro o r initiatives: t o o ro ro • o t t o r t t ro t t o t r tor o o t o or t r r t o o r t r t rt p In Italy the demand is still immature t r pr r o t to t o t o t t pot t to o tr t to t r o t t t p rt Consumers or to t t r ro o o o r o or t t r t o or o t o o t r r to r pro t r or pro o r o only 14% of users in Italy have purchased a policy r or t o r ot t o o to p o completely online o t r po r r t p rt p t tt r r t t r r o o pro t The majority to r t o t t r o of consumers have never purchased policies in o p r t o digital form and do not intend to do so in the near • r o r t r t o t o o o t future to o tr t o t fir t r t t t t rt t r t fi t t tr t o r tor r t t o o or SMEs to t r SMEs mainly turn t t o t po t o tr r t to traditional actors r o p t t t r o t t op t opport t p r r or t o o o t t tor o t t t traditional ways: 78% of SMEs opt for a completely r t o p r t t physical channel. o o p t t o t rt p t o t t to o t t r tor Users are in favor of sharing information r ro o r t t t o o r t t profit p o r o p t tor t r r port t to o o p t or or r t t o t t pop t o r or t o o t r products. France is a market in which Generali wants to r t t ro o t r t t ot t r t r pt t o r op to r or t o o r t o o t In Italy examples include both collaboration between o t incumbents and startups, and between startups: • o o t t p o o rt r Neosurance with AXA • oor r o or t • r t r t o o r o t op p t or • Hype teams up with Prima o r rt r rt r fi o r t o Ntt t r r port
76 4. FinTech in depth analysis
InsurTech to mention in 2019: towards globalization t r t o t r pp o t r t t rt o o t r r t tt t o o • rt o o r t o t t rt o o t numerous international companies and was selected in p t or t t o r r r p op o o o o o t t rop t rt p t t r o tt to t t t r r o t o t or o r t t o t • oo p t r t rt p o t t r t r t r r o r ro p port o o pr p r to rop r o t or or t r t r o t to t t r t fir t t t oor p t or r t r t
InsurTech News Room
BeBeez, 23/10/2019 STARTUPITALIA, 29/11/2019 BeBeez, 29/08/2019 Yolo insurtech opens a new round of itto ia t fi t ta ian in t c The insurtech Axieme collects a round mi ion o to financ t n incubator, is born of over one million euros, of which business plan ro ot ttor r o t 500k in equity crowdfunding o o rt op r oo t op o t o or t rt t rt p t t ro p to o ro to o t t o o t rt p to t op t fir t t o t fir t rt r o t o to r t t r r r t rr t r o r t ro ttor t fir t rt tor o t po pr to t rt o open to institutional investors. t t to p o t o po o r o o o ro o t t t rt p o t t t o p fi t o t ro o t t to t o ro ro tor t o ttr t o t t rt p ro p o ro o t t t p rt r t o o p rt r tor to t o ro t o N t r t orpor t t r o r o r t rt t rt o o p t o t p o o po o t ot r ro t ro t r t or r t t rt p o t r p t ro r t o o r to r idea to industrial maturity. ot r or pr ort t o o ro o p t o ro Insurance Connect, 01/2020 Press Realise, 07/02/2020 OPEN BANKING: Car Insurance, Hype Fabrick integrates Lokky’s offer on its teams up with Prima open banking platform r to r t o t r ro r opt o to t o t po ro t r pp t to ro r t t p r pro o r r o r r o t fi o otor r t o po t t r t o o p to rt fi t r fi o o t ro o t ot t t t t p fi o t to r o r o t r t o p o t o r t to t t r t to t r t r o o to r t to t o t t r t o t t or t t r r po ro o t o fi t t t o ro r to t t r t o t r t o t p o pp t o Payment on the Hype account.
77 FinTech Calls for Fuel
RegTech does not take off but new opportunities may arise with open banking
Key numbers 2019 Highlights • t t r o p • r r t r ro t • r o t r t o r t t t r o r o o p o t to no investments r t r o p r r o • ro t r t op companies it is the smallest area r pr t o o t tot r t
• t o o t t o t
• o p o o o p o or t r o o p r to t tot ro t o RegTech Total FinTech • t r t r o tot turnover t r o ro t pr o r number of companies 18 278 r o t o p t to o ot o p t p t r t ro t all other companies have growth revenues (% on Total) 1.4% 100% ro t • o o t t o r r r pro t N o p o t average age (years) 4.8 Investments (% on Total) 100% EBITDA -0.4% 2%
o r N t o t t r tor
RegTech Taxonomy
Regulatory/compliance Fiscal assistants Personal Data & ID Management software development
Document management Negotiation/Commerce Platform Other
o r pro o N t o t r p
78 4. FinTech in depth analysis
RegTech t t o o
r o po o t Regulatory/compliance software development: Negotiation/Commerce Platform Fiscal t r t o p Assistants Personal Data and ID Management o ot r t o op t o Regulatory/compliance software development o t r t o p o p t Document Management and Other. r tor r r t t o r The Avantgarde Group and Epiphany o ro o p t p t or to prop r Business Segments p t or o r or t o t r t o r t Negotiation/Commerce Platform – it is a cluster or t r t t o Document Management t t r o o p r to t tot o ot t o t o t fi Digithera and Cloud Finance t t pport pro t t o t o Trakti t t o o t or to t o t r p t or t t pro r or ot t t tro o or o ot t o o r o r o ot r t r o tr t to t t ot t o pro t t t o r t o p o tro t o t rp rt Commerc.io p t or or tt t o t r or to r rt o t t LexDo.it o r to t o oo r o t ro r or o LawOnChain p t or to p o tr t tr t Other t t or t o r o IBANP pro t t p o t o t t Fiscal Assistants o t t r o o t o r to o ro o t t t t o t pro to ot r r t t r N InDigita p fi or t o pport t t o o op p t or to t o t t t r t t t to t ro or r o p pr p r t o o ot t o t t r EasyTax TaxMan and Fiscozen. Technologies Personal Data and ID Management p t t prot t o o t o t r r o t personal and identity data. Mailcoding is a service o t port t t o o t r o t t pro to r t r t o o r o t tr t to o t t t p o r t t o t or t o p o t o t r or r to pro ot r t r o online communication. Vis-à-bit t p t o o o t p o pro o t fi t o t r o t o r r o t r #be o o r t t t t t t r t o t r rt r Movenda and Tap-id op proto o to t t t r t t t ro o
79 FinTech Calls for Fuel
RegTech Stories
RegTech late to take off in Italy Evolving offering of RegTechs po t ro t or r Epiphany or p p rt r p r t r or t t r o p o o t r t r o r or fir p t t r fir t or p p or r ro t ro t t r o p to or p p o ro p r o p o t port t fi t t t o r t p t or to t t t or t t r t t o p r to t r t o t ro t p rt r p o or t t r or t o r o o to p t or o r tr or r tro or t o t r t o r t t o r o o rr o r o tr t o p p Digital Identity and personal data management. o p r to t r t t r or t t o pp r ot o t r o t t r t r t t t o t r o t r t to t o o o o t RegTech is an area with enormous growth potential, still largely unexplored in Italy. RegTech t t r t t o t o o o p p t r r o t News Room t r t r port t r o r p rt o t r r t r
Ways for growth t t p oo t r t ot r t opport t r t op p p t o o r r t Kaleyra 19/07/2019 oo r t t t r t to t o Kaleyra and Epiphany form t o o ppro to r t o o p Open Banking partnership to t r t r t o r o or t p r o p t r r or o p o o or fi t t p p t o o t rt p or t o t t t t RegTech may op r t o p t evolve acting as a sort of TPP of legal solutions o t o t t op p op for SMEs in Open Banking infrastructures. Given p rt r p r t to o t pport t t o p r t o t tr t o t r t tr or t o ort ro t o tr an ma n fit in o p to r p r to RegTechs to extend their offer to SMEs. or o r t o
o r t t t ro o o p o o t r
80 4. FinTech in depth analysis
81 FinTech Calls for Fuel
5. TechFin
TechFin is an healthy and growing sector
o o p t r t r o o o t o t o ot t t o o t opport t t fi tor op r t o t tor t r t o p t o o p r o t r t N tr o r o t p pp t r o r r r t r r t
o o t o o The opportunities for AI and Mobile-UX are growing rt fi t o r t o t r t o p t o o • o p o o o r o t o t fi r t too o t o t rt fi t or o o r p r o t o p t t o t t or t o t o t r t o t t t t r o r port o p t t o tor t r o t o r t o t r o p t t r o r or t r t t ro r r t t o t t r t r t ro t t r o r • t r t t o p r to t pr o r o o t ro lower than in FinTech. • N o p t Investments in the area are contained (similar to p r t ro r o ro international Venture Capital. • o p op r t t o ro t r ro rofit t o r oo ro t t pt o o t r r t tor • More solutions to support productivity and improve t p t t r t t o fi o fi o p p r or o o p Insurance companies).
TechFin introduction
To complete the FinTech Selection criteria include: picture we selected some Tech and Business Innovation: key players in the area • t o o t o r t o t r o p o r • r o r o r r t Financial Services specialization
o r N t o t t r tor
82 The Italian selected TechFin Landscape 2020
Tech Enabler 69 86 Companies
Web Platform 8
AI / Big Data 54
Mobile & UX 5
Blockchain & Crypto 8
Open Banking / API 4
Other 7
Cybersecurity 17
o r pro o N t o t r p
83 FinTech Calls for Fuel
TechFin in Italy in 2019 (VS 2018) The Italian selected TechFin portrait
69 Tech Enablers Mature or t r o
17 CyberSecurity Average Size t or t p o 186 M € revenues Moderately Growing r 43,6 M € capital raised Promising: Increasing EBITDA 32 Scale-ups ro to Constant increasing 2 areas & 13 subsegments of n° of Scale-ups ro to
o r N t o t t r tor o r N t o t t r tor
TechFin: In & Out
o p o t or r
Neutrino acquired by CoinBase Qurami acquired by uFirst 17% Stamplay acquired 12% by Apple 25%
17% 50%
16% 63%
Acquisitions Dormant companies Platform Discontinued Revision of AI / Big Data Operation inclusion criteria Blockchain / Crypto
o r N t o t t r tor
84 5. TechFin
Revenues Relevant but slowing down growth for the selected TechFin
Revenues analysis is based on 66 companies (76% of total sample).
Not o p No rofit t r t o rt r No Balance sheet.
186 million € / +17% t t r r t r
TechFin revenues
186.2
+17% 159.6
127.1 +26%
2016 2017 2018
7% Available 2018 Financial Statement 10% Newborn 2018-2019 No Italian 6% No available Financial sttatement
Values in million € and percentage variations 77% year on year
o r N t o t t r tor
85 FinTech Calls for Fuel
Key technology in the TechFin arena
r o o p r r r or o p o o t 2%1% 2% o 7%8% 5% t t o t 16% 1% o p o o 9% o op p t or 6% 86 186M Euro
65% 77%
Platform Platform AI/Big Data Mobile & UX AI/Big Data Blockchain / Crypto Mobile & UX Open Banking / Open API Blockchain Other / Crypto
Open Banking / Open API
Other
o r N t o t t r tor
EBITDA 2018 is 10% o r p ro 8%
170.5
11% 15.8 3% Tech Enabler Cybersecurity Revenues 2018 Ebitda Margin 2018
86 5. TechFin
Investments in TechFin Companies
p t r t o p p t r p r t r o op r tor N r o
43.6 3%
(9) 24%
28.6
(12) 43.6
73%
2016 2019 Crowdfunding International VC National VC 100% r
o r N t o t t r tor
87 FinTech Calls for Fuel
Tech Enablers are maturing and more solutions arise
Key numbers 2019 Highlights • N N N N t o p • r o p o t to • port o N o r t o t r t o o p o tot ro r r ro to • o o t o ro t o t t t t • o o p o t o r ro • r t t o o p • N o t o to p pro t t t o o
• o p o t o r t o r o r o p r to t tot
Tech Enabler Total • o t r ro t t o r TechFin o p r to t r t o o p r p number of companies 69 86 o ot • r t tro ro t ro t o p r to revenues (% on Total) 92% 100% ro t • EBITDA margin is 11% up from 2017 (8%) r r and higher than FinTech. N o p o t • Revised Taxonomy and completely new average age (years) 6.8 7 t p tr Investments (% on Total) 100% 100% EBITDA 11% 10%
o r N t o t t r tor
Tech Enabler Taxonomy
r r
Advanced Analytics Digital Marketing & CRM
Conversational Interfaces & Text Analytics Blockchain Development o cti it & ac fic
Open Banking/Open API platform Customer Engagement Other
o r pro o N t o t r p
88 5. TechFin
Tech Enabler t t o o
Open Banking/Open API Digital marketing and CRM t t o o p op r t t r t t companies: Truelayer t t pro op pport t r t o tr t t or or r to op r to o r o p o o t propo t o t t are included also in Advanced Analytics and/or in the o t r t o t t t o o r t o t r t t o t r fi t o or t r MIA t t p o pp rofi t t r pro t t or to p t t o p r o o or t r t t r t o to o t ro t tr t Digitouch Doxee o rt t p t to t ro t t r r t Beintoo or o pp or to t r or or Apparound) and have a cross industries r o r o p r to t tot approach. Advanced Analytics t t or t Blockchain development po r t rt fi t t o t t t o p o o to r rofi t o o p r op p o p (i.e. i ofi t t r to r t to t fi t t r t t o pport r t p or NeoData t o o t o o or tr t r and Analytics (i.e. Altilia AgileLab Energyway) and rt o tr t tr o oo p t p r r tro t t t o
Conversational interfaces and text analytics o cti it an ac o fic o o t o t ro t t t or r o p o p t t o r t ot o t o pport o fi t too o or o t r pro or or t t ot r t t o o o r p fi or t t to pport o to r t o AskData ot r or r or care. Some companies (i.e. Eudata Expert t r Systems Conversate Vivocha) have a consolidated t t o t o r t Customer engagement t t r t o p t t to o rt oo or ot r o N t or r or p Worldz p t or to pro o media communication.
89 FinTech Calls for Fuel
Tech Enablers Stories
Positive trend of investments Digital and omnichannel strategy strongest driver The investments in Italy increased by 52% o t o o t r ro t ro compared to 2017 and 43.6 million euros raised to pro to r t tro t with 9 deals r r r t o o t r r or tr pr o r o ro or t o o o to r p r t o p r to r o t o op t ot o to or to r t o to r pro t r t o t r p t r t t o o r t o t r o r t t or t r t ot r r t t t rt t p t o t o r t o t r t i nificant it r t r t r ro t t r r t t Open API is expected to accelerate its growth in 2020 • Blockchain analytics: Neutrino r r t or t opport t to o r o p o N tr o r t ro t t o opport t t o p o to r or ot r tr to r p p t r pto rr pr t t t key this scenario. o ro p op o t t t r o r tt t tor Blockchain is growing but not mature at all operation is the evidence that Blockchain analytics o op t t ro o r port t p rt o t r o o p t t r t o ot ro r r pto rr t r o r ro t p t t r o o t ro t r t o o • to r p r o pp Qurami has t t o rt rr r o r o r r t ot op r t o t r t t o r t o r t o o t or t t t p t o t p • p pp r Stamplay t r t o op r
90 5. TechFin
Tech Enabler News Room
Sole24Ore, 19/02/2019 21/11/2018 Sole24Ore, 21/03/2019 Coinbase Bought Neutrino Qurami, the queue management Apple acquired the Italian for $13.5 Million app acquired by uFirst startup Stamplay o r N tr o r t pp t o o r to pp r t p t o t p t or t t o p r t rt p o t This is the most important Exit in pr t tor r r p t o o op t r pto r p r pto rr r o pp or op t o or o to t oo pp to p ro fi empower security in cryptocurrency t o to t o o ro or t p t tr t o tr t o o r p t or or r t t to ro o p r this new system p fi r t t ro r r t o r to o pp r r t t t t rt o p t to t tr employees. t r r t pro t at airports. N tr o or p o o o t t to t tr to r t to t o to t t t o pro t t t r
TechEU, 05/06/2019 Insurzine, 27/01/2019 TrueLayer has raised 35 million $ MIA Platform enables r r r o ro Digital Transformation in t pr or r to Cattolica Assicurazioni p t p t or tto r o to o t o rop o p t or to t r it will use the investment to continue o t r r t t r t t r t o to p t p p t or t ro t t to o t t or t o o r rop t o tto pp ott to pport t o r r pr ot t o o pp t t pro r p rt r t t o t o t o o o op r or t The next step is expansion outside o rop t tr o r t o or t t t t o coherently with its latest investors.
91 FinTech Calls for Fuel
Cybersecurity o t o o ro o p tr to ro
Key numbers 2019 Highlights • t t t o t fi t o p r to • r r t o p o t to t t r p r or • o t o t o t o r tr to • r o o p o tot r r t r to t r t o pro t r ro to • t r ro t • o o t t • t r o t o p t
• o t r ro t r t t tot p r t r o r r t o p r to tot
Cybersecurity Total • No p t r ro r r t TechFin companies. number of companies 17 86 • r r o r o r t t o ot r o ro t revenues (% on Total) 8% 100% • r o pr t ro t t r t o o o o p r r N o p o t average age (years) 8.1 7 Investments (% on Total) 0% 100% EBITDA 3% 2.3%
o r N t o t t r tor
Cybersecurity Taxonomy
Antifraud Mobile Security Web Security
Other (Infrastructure Security, Endpoint Security Cryptography, Reading Machines…)
o r pro o N t o t r p
92 5. TechFin
Cybersecurity t t o o
Cybersecurity Area is composed of 5 sub- Technologies segments in which companies operate/work AI & Advanced Analytics Antifraud AI & Advanced Analytics are the prevalent t o p t t or t fi o t o o t fi o t r r t p t t r t t p t or t to o r t t o p p r or t t po to p o o o t tr t o or t XTN o p t tro ro t t or or r to t t pot t r tt t t r op o r or tr o t r p rpo t r t r rot t o o t o to t t o r or o r t or r o r r t o p r to tot t o propr t r t t o o o to r or or t to p t o p t fi rpr t UnFraud t o r propr t r p t or o o r r t r t o t r t p r or t or r to t t to t r r t pp t o o to pr t r p t or to o t o r t rt fi t o o t or r t o to t r t t t r fi o t o t o r pp to r r o t r o r to t o Mobile Security t t o tor o po o o p t t o r tro t t t o o t o o p t or Cryptography (MobySign or p r t t t ot o pr o t t t o t or o o p pport t t o o r pt r t o r o t o o r pt o Endpoint Security r pt o or t po t r t o p or t prot t o o o p t r t or t t r r ot r to t Blockchain tt pt to r t t o o t t o p to r or t o r fi t o o p to t r o tro t r r o t o t o o r r t Web Security t t r pto r p ootpr t o t t t r t r o o p his personal data. Even this area has companies that are also included ot r t p fi t o o o r o t r o r t t r t t p t or t r t or o r t r r t r t t o p InTheCyber t o o or r o r t r t t
Other t r o p or t r tr t r r t r pto r p
93 FinTech Calls for Fuel
Cybersecurity Stories
Cyberattacks continuous growth Competition is increasingly global r t r t p ro ot r t o p t t o t r r t o r r o tt t r r o r o to t t t or o p r o t o t o ro t r o t o r t ro t t r r r t fir t o r o r tt competitive pressure. t o tort o o or or t o t o p r to t r t Some companies have already reached o p o r t r an international dimension customers. p o N o p t o fi o t o o Italian banks are the main o to t o t No t o or o t o t investors in Cybersecurity r r t o p t t r r t or to t r r t ro t r Awards. t r r ro o t r o t t t t fir t o ro t t tr r t o r t t r ro r t t t r o t o o t to o o o r ro o t t t o o t rot t o to o ro t ro t o t r t to r r t r to r t o
Distinctive skills as competitive factor o r t t fi t to fi port t o p t t tor o p o ro r t p o t r o r p o r r r t p rt
port t ro tro r r t N t o t
94 5. TechFin
Cybersecurity News Room
01/2020 Report CheckPoint, 2019 BeBeez, 29/05/2019 Partnership between 2019 records a growth Scytale participated by Gellify Tempest and Cleafy of Mobile banking attacks o t p t or ot o o t fir t r o tt r or t r t t rt p ro r t or t o p r to p op o t o o tr t p rt r p t tt o r pt o r p r o pr r malware that makes the risk more tro t r t t t o prevention services in Central and widespread. Even cloud attacks are o o proto o t r rop r o ro to t o r t pr t t orr t o fi r t o t o r o r r o pro r o r tt ro t r tt to r o o o p also extended via SMS.
95 Contacts
Fabiano Quadrelli rt r o t r o r p o
Rodolfo Pesati rt r r o t r ro o o p t p o
Roberto Lorini FinTech Leader ro rto or p o
Barbara Uttini FinTech Expert r r tt p o
Contributing Francesco Simone Farina
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