Open Banking faced quite a slow start in Italy, as online banking was mainly focused on domestic services. There was vision or goals for collaboration between tech companies and traditional banks.
Now, the technology has opened the door for fintechs and non-financial services companies to enter a market that was once dominated by banks. Talking of Italian banks, they have also embraced the technology and have incorporated Open Banking services in their portfolios with features such as:
More recently, Italy launched a regulatory sandbox to encourage growth in fintech initiatives. To give you some context, sandboxes allow fintech startups to conduct ‘real-time’ experiments under regulatory supervision. The Ministry of Economy and Finance, the Bank of Italy, Italy’s financial regulator Consob and the Italian Insurance Supervisory Authority (IVASS) announced the news in a joint press release.
This is another step forward in promoting innovation and establishing Open Banking.
By taking advantage of the PSD2, Italy’s banking ecosystem is slowly yet steadily progressing towards an Open Banking reality centred around the customer's digital experience. This is an important course of action for a country that customers are considerably less likely to use digital banking.