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 ofir o or pot pro ro t tr r o pot tor tt firt p 3. Towards Open Banking and Finance 20 t t o t o tr r o t p r op to ot r to tor p ror r op p trto t ot 4. FinTech in depth analysis 42 r o t t oo t o t t t t tr ro Areas pt rt r r 5. TechFin 82 r rrt 3 FinTech Calls for Fuel In the meantime, Coronavirus has arrived: what could change? t rport t t oror It is quite natural to think that this situation will lead to r ro ot t rt too r to a inificant inca in t an aciation r prto ot t pt o o iita financia ic tor ot to t r o t tr mention the likely exponential growth in the demand troot t oo prot o for credit p r rot t o r t or o orto o po ro r r o or negative impacts to or that could primarily concern the investments of venture capital ot to tto o Nr t t t t otrto tt tto o t tr r t t less op r o rt attention paid to new start-ups (seeds). Some analysts to trto fi op on the international market speculate that this could tr o rt t oto lead to a greater number of closings of players in the development phase. The volume of transactions t o trt t or might also decrease t t t ort tr oto t rpo to already evident in some sectors such as payments. This customer needs (private and corporate) o to r profit o investments) in the sector. or tr r areas of potential optimism. or t firt orto o t rt rprt advanced tt t ro t propt r analytics oto t o big data t t rport tt ofir o o oto to rt The collaboration scenario described in the rtt rt o t t t or fina cat o n inanc co n opo o rtr port prtr strengthened and accelerated. t t r ro fit t pt o tto t t forced experimentation r t pror o t t of new ways of collaborating remotely through o t tt rtr digital solutions ot pp o or t ooto o t tor or r rt or or t r t o or t ortt rt or op tt fi t or rtop t r tor fit to t tt or tr opt t o t t tto o t Some areas will be privileged (the lending r oto ot to o to r t prort the customer experience onboarding and KYC rot oprto tto tt oo oto cybersecurity tificia ntinc tt t t t t oto conversational rt r r or op interfaces t Blockchain). Platforms enabling r op rr the integration of services will also become the resilience of infrastructures t quality increasingly important in order to support the and quantity of tools tt o rt or ot o tp pr ot t t fi o o r rt to ot oto pto r tto rt or oorto to rpo to ro tt tt r to t r rt or prt o to rt oto o t op prtr opt r o t t o r t t ppro to rt tt or pot t r trt to tr otrto t t ott tor tr o orto o ro tt t r or p t poo o to prott or t or tor trt r to t r o o ppott to rt o or trto tt ot rr ot tro tot tr o or to rr orrr troo t t oto o r rt orr o ro or oror to tr oror rt ro to t poo ro to ro to tto ro 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 oto ro p to r t pr trt oto to pport rotto to pport t r t to pport to ro t tt r t oror r ttto pt t trtr political representatives who in these days have the Splitty Pay tro ptt t o or r r t r p oorto t t o t ot orrt t po o oto t rtor o t r t oo fi or t pr o ttor GrowishPay allows Italian ecommerce companies to pr t t r t to ot r o tr to orto or oprofit orto t ot o r Opstart totr t ofitr ro o tro t oto o ro rt t t pro rt t to t tot ot rr to pport opt r to t t ot trr t oto ot to t t o r o t prtr o chosen institution. rro ro ro Tinaba t t ot or o Satispay invites its community to support Civil t pport rofio rotto tro t oto r ro fi r ro t oto t ot ot tt or o t r p o tr or o to opt or oo oto o t ot t to r t r ot oto or ro to ro Revolut ot t t prt o t trt supports the Humanitas hospitals involved in the Credimi t o fi ptor oror r tro t oto or r trt to t t pp oto to fi prot t to r provide hospitals with the devices and health materials trtp to p t oro r to prott t ot r ptt t fit rt ot rt t t o oror oto Hype or t tor t opportt to oto rt ro t pp t o to to p t trt o o opt to t fit r ot 5 FinTech Calls for Fuel 1. Introduction and Methodological notes or t tr ot r t t t 3. N tor r pport o Ntot rr ot investments. research on the FinTech universe in Italy. o t to p Why? r r o t tt or to fi includes: p t oo potorp t o t r rtor and examined the sector exhaustively. In this tor rtor rtor tr to t ot o or or ot too trto rtt t r pt ptor p t o t tr t potorp o t tor oto t rt or t t t ro tr fi o ttto tt t o to pro to t ro t p rtor tor r ttto o o o t FinTech companies. t propo o o pott p o or trt tor The news This edition presents some news or t t pott ro o compared to the previous ones: o t In line t pro to t rport o o pott or o oto o t ot o t r o op trto rt t rt t o t ro tor t tror trto tr pt fit o t trr r o opro t t o t rt t Separate analysis: t rt poto rt or t t or t t o too tr pro t ot opr ptr o t t rt or t t t p o trt rr op tt r to fi orport to A total of 364 companies were r t r t analyzed, including 278 FinTechs orto tr rrt 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 op o o fi r trt ot to ro or t t r t o t r fito trt ro t tr t t t pt rt ro opt r t tr r tr ro r oo r rt ot fi r o tr rfi r prtr op tt r prt o tor rop r o t t r tr not included. oto o fi op otr t op t po o t or t Companies that are headquartered outside Italy fi prot o too op r tp ot t pto t or o otr ofi tor rr op o t oprt fit t t rt or to oto o too fi r tt tror t fi oprt oort trt t tr tor tr rtor TechFin: what is included otr t tr tp o op in this report ro trtp to t op to t fir r rt r rto p o ot pr t r o o r tt r o tt r rrt too pfi tor or rt tor rrt op r o o or to t t ot r r r chosen in some selected areas: • Advanced analytics In this report we decided to separate • t rt FinTech and TechFin • orto tr tt t • Blockchain In this report we have separated the analysis: • p p • tor t • o t o t t to to pro t ror or opr ptr o t t por • t t o to pro p o op tt r to fi companies.