Population
58.7M
Online population
50.7M
Currency
EUR
Population - 58.7M
At the start of 2023, 71.8% of Italy’s population lived in urban centers, while 28.2% lived in rural areas.
Internet penetration - 86.1%
There were 50.7M internet users in Italy in January 2023. 8.1M people in Italy did not use the internet at the start of 2023
According to the EY analysis, which includes a survey based on interviews with over 100 Italian FinTech companies, in Italy from 2016 to today, loans raised by the sector have increased with a CAGR of over 60% and, in 2022, they grew to €1040M, with a significant increase when compared to €900M in 2021.
97% of FinTech companies plan to hire new talents over the next 12-24 months, despite the difficulty in finding specific skills in the Italian market. In terms of investments, they increasingly rely on international Venture Capital funds (+88%) rather than on personal resources, in line with the greater maturity of the sector and the need for growth and expansion beyond the Italian market.
Regarding Open Innovation, 90% of the Italian FinTech companies have established a partnership in the last two years, especially with traditional financial institutions, to launch new products and services.
<aside> 💱 The FinTech Channel is the point of contact through which operators can dialogue easily and informally with the Bank of Italy. They can present projects in the field of financial services and of payments, based on innovative technology, or propose technological solutions designed for banks and financial intermediaries. Projects presented for commercial, networking or advertising purposes do not fall within the scope of the FinTech Channel and will therefore not be the subject of any follow up.
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<aside> 🔑 Italia FinTech is the leading Association of entrepreneurs that brings together the most innovative national and international FinTech companies operating in Italy. It was launched in 2018 with the aim of promoting knowledge and adoption of FinTech solutions by consumers, families and businesses.
In 2020 it was one of the co-founders of the European FinTech association**, EDFA – the European Digital Finance Association**.
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<aside> 📌 The FinTech District is the gateway to the Italian FinTech ecosystem and attracts the most relevant national and international stakeholders. The FinTech District community reached over 100 startups and has multiple collaborations with public institutions, investors, professionals, financial institutions, international innovation hubs, universities, and corporations.
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Italian FinTech deal activity witnessed a surge in Q1 2023, as it recorded a total of 15 deals. This represents promising growth of 15% compared to the corresponding quarter of the previous year, Q1 2022. Based on Q1 2023’s deal activity, Italian FinTech is on track to reach 60 deals in 2023, a 9% increase from 2022. In Q1 2023, Italian FinTech companies collectively raised a total of $21.9M. This reflects a substantial decline of 90% compared to the previous year as private market valuation broadly decline.
Overall there were just 7 FinTech deals in Italy during Q3 2023 which may skew the projected total for 2023. Italian deal activity in Q3 2023 was 52% lower than the average over the previous two quarters. Italian FinTech firms are expected to secure $186M in funding during 2023, reflecting a significant YoY decrease of 77%.
Qomodo, a Milan, Italy-based provider of payment solutions to physical retailers, raised €34.5M in Pre-Seed funding in Q4’23.
Team System, which offer a wide range of digital services for businesses including, online payments, accounting and current account management, had Italy’s largest FinTech deal in 2023 after it raised €600M in their secondary market funding round, led by Silver Lake.
UNGUESS (formerly AppQuality), a crowd testing platform, was the largest Italian FinTech deal in Q1 2023, raising $10.9M in their latest Series B funding round, led by FITEC. PayTech was the most active Italian FinTech subsector with four deals, a 27% share of total deals. In comparison to other European countries, Italy displays a higher reliance on cash transactions.