“The digitalization of Financial intermediation process”: Consob chose Fintech District to present the results of this study about the present and the future of Fintech and how financial innovation is shaping assets of Italian economy and Italian society.
The study has been realized from September 2016 to November 2017, thanks to the collaboration of about 70 professors and researchers, from more than 15 different Italian universities. On this occasion three main themes were focused upon: automated advice; DLT and securities markets; digital markets, financial inclusion and regulatory approaches.
After an introduction given by Giuseppe D’Agostino (Consob), the first one has been developed by Nadia Linciano (Consob), the second one by Emilio Barucci (Politecnico di Milano) followed by Salvatore Lo Giudice (Consob) that gave the floor to Pasquale Munafò (Consob) for a quick overview of preliminary analysis and open issues as regards Digital markets, financial inclusion and regulatory approaches.
Results presented by Consob in Milan will feed in a series of documents that will be available in the first quarter of 2018, each of them will be focused on a specific Fintech theme discussed on the basis of data derived from the Consob study made public first in Fintech District.
“Innovation of Financial intermediation process is the motor of economic and social innovation. For an open community like Fintech District it is very important to host and listen to the voice of a regulator like Consob – said Pietro Sella, CEO of Sella Group, by introducing the study presentation – real innovation develops thanks to a plurality of voices which support it. University and regulators are the best voices for the type of open innovation that we desire in our Fintech District community”.
Sardex is the creator of Sardex.net, an integrated circuit based on multilateral netting of credits and payments, designed to facilitate economic relations between economic entities operating in a given territory. Companies taking part in this additional market, finance each other interest-free by using digital credit for their payments with the value of an euro (1 SRD=1 EURO) that may be spent inside Sardex.net.
Operating from 2010, Sardex.net was born in 2009 in Sardinia to support the local economy in a difficult period as a complementary and supplementary market for all member companies that, in this way, can take advantage from their untapped productive potential: products and services.
Sardex is currently an S.p.a company with 50 employees and a network of about 4 thousand members, including companies and professionals, all based in Sardinia. Today, after 7 years of activity, it is present also in a further 11 Italian regions (Piemonte, Valle d’Aosta, Lombardia, Veneto, Emilia-Romagna, Marche, Umbria, Lazio, Campania, Abruzzo, Molise-Sannio).
“By the end of the year we’ll close at a value of 300 million of credits, in terms of services and products traded inside Sardex.net” claims Gabriele Littera, CEO of Sardex, now looking for new local partners to start circuits in regions yet unconnected.
Like “software” at the service of local companies, Sardex can be installed on an “hardware”, the local economic circle, and replicated as well in a foreign country. Developed so far with a focus on SMEs and professionals, now this company is extending its scope for action working on projects with the Public Administration and opening up Sarex.net access for consumers.
Joining Fintech District to consolidate its presence not only in the Italian market, Sardex considers it “the ideal place to carry on with our growth” Littera explains, revealing his expectations: “find breeding ground in terms of business opportunities and connections with equally innovative companies in order to make our model increasingly attractive and pioneering.
DOMEC is a collaborative Fintech Company active in the industry of innovative payments and digital loyalty system. Born of an entrepreneurial idea from Antonio Sorrentino, it is now an innovative SME with a turnover of EUR 3 million and 25 employees, the majority operating in the R&D center located in Potenza (Basilicata) where Domec is growing a young team of experts focused on innovation in payments and digital loyalty system.
To define “collaborative” this company, is a way to underline her real value added: Domec works with banks and retail companies to develop the innovative solutions for Digital Engagement, Digital Loyalty, Digital CRM and Digital Distribution. Together with clients, it is possible to personalize the platform of Domec Tools and offer innovative and flexible solutions for every industry in a simple and effective way.
Retail companies and banks obtain value adding services integrating all kinds of engagement and loyalty campaigns with their own CRM, without IT impact in order to speed up their innovation process and to offer new and engaging services to their clients. “In 2018 we aspire to double our turnover becoming a ‘tech hub’ at the service of banks and retail companies to offer goods and services to a vast number of final consumer” states Sorrentino, CEO of Domec.
“Unlike other models, the Domec one has been developed starting from the client’s requirement, for example Autogrill, who tested services and platform tools and confirmed new technological solutions, activating a big number of cards. From Autogrill’s experience, we started developing the Platform Domec Tools, now able to offer innovative and flexible solutions for every industry”.
Another good example is Eataly who migrated the entire management of their Eataly Card on Domec platform, becoming able to analyze customers’ buying behavior, launch targeting marketing actions, issue targeted coupons and electronic discount vouchers and also cash back that can be spent within the Eataly network.
With Eataly, Domec aims to approach the USA market, at the same time the company shows a lot of interest in the Austrian market whereas in Spain there are already 2 employees working in Valencia and their number is going to increase. Domec has actually been selected among more than 70 companies, to partecipate to Bankia FinTech acceleration program which started in November. “We are the only Italian company chosen and one of the three foreign ones – explains Sorrentino – these 7 months with Bankia have opened a window onto the Spanish market. It will mean having access to Spanish retail companies and to aspire to the South American market too”.
In order to enlarge his business, Sorrentino joined the Fintech District, “essential for companies like Domec that need to consolidate their market position. To be part of this district will help us to grow in terms of trust, for sure, and will make us able to face the national and international market with more credibility”
Ebury is a company that handles payments and receipts in currency and offers simple products to cover the risk in foreign exchange. Coming into being from the meeting between an entrepreneur and a investment banker, Ebury gives SMEs an efficient, accessible and transparent global transaction product that enables them to efficiently and securely send payments across the world in over 140 currencies.
SMEs don’t generally have access to this type of services throught a bank, Ebury’s global payment solutions give them a tool to improve their capacity to expand the business globally, taking advantage not only of a competitive pricing, but also of unrivalled access to liquidity in all corners of the globe.
The easy-to-use online portal is free, Ebury also provides transaction receipts online and by email, giving the possibility to easily have a fully auditable payment trail. Security of payments and business is taken seriously by this company, more then ever, now that from an API (Authorised Payment Institution) has become an EMI (Electronic-Money Institution).
The Italian market is ideal for Ebury because it has the biggest concentration of SMEs, potentially interested in their services. Gianluca Carfagnini, Italian Country Manager of Ebury Partners, explaining this, points out that between Italy and the rest of Europe there is a big gap, which is recognized by istitutions, about the way that Fintech is known and perceived as an opportunity, above all for SMEs.
This is the reason Ebury set up in Italy “not at all under the radar” but with a team of 13 people, turning into 20 by the end of the year, and into 50 during 2018. “Special numbers” for Italy, compared with the teams of the others international headquarters in their first year of activity. The creation of the Fintech District in Milan, together with the initial signals from the Italian market in interest for Fintech, has sped up Ebury’s arrival in Milan. “This is the opportunity to change direction in Italy and to connect all the different players of this sector to foster their development and the development of Italian SMEs – explains Carfagnini – we want to be here in this moment, to be part of this evolution from its inception”.
“Magic Wand” is here, the very first italian Fintech Call, created in collaboration with Fintech District and managed by Digital Magics, a business incubator listed on the Italian Stock Market by AIM Italia.
“Magic Wand” is the first accelerating programme dedicated to the FinTech and the InsurTech sectors with the aim of creating an Italian centre of excellence for the most important market operators.
The call is meant for early-stage startups which are developing innovative and original business ideas for the financial and insurance market, through products and services based on banking, payments, investments, loans and crowdfunding, platforms, infrastructures and technological tools.
You have until December 8th to apply at the address http://magicwand.digitalmagics.com/
Milan, October 30th, 2017 – Digital Magics, a business incubator listed on AIM Italia by Borsa Italiana (symbol: DM), launches “Magic Wand”: the first acceleration program in Italy dedicated to the early stage startup of FinTech and InsurTech that are developing innovative and original business ideas for the financial and insurance market, with banking and payment services, investments, loans and crowdfunding, platforms, infrastructures and technology tools.
The 10 partners of the program, who will actively participate in the selection, mentorship and development of selected projects, are: BNL BNP Paribas Group, Credito Valtellinese, Ersel Investimenti, Innovation Center of Intesa Sanpaolo, Innogest, Poste Italiane, SellaLab, SisalPay , Royal Mutual Assets Company and UBI Banca.
The goal is to create an Italian center of excellence: a real system alliance of the most important operators of the market, to accelerate Italian FinTech and InsurTech startups that are working on scalable models able to compete internationally and to innovate the industry of finance and insurance.
Only in Italy the numbers are enormous: over 4.100 billion euros are all the financial assets held by Italian families in 2016, household and corporate credit is around 1.400 billion in 2016 and premiums written by the insurance industry in the “damages” and “Life” sector amounts are up to about 130 billion in 2017 (Sources: Bank of Italy and Ania).
Among the ideas submitted by 8 December at http://magicwand.digitalmagics.com will be selected 10 projects that will receive a first grant of 5.000 Euros and the acceleration of 6 months will begin in January 2018 in the Milan office of Digital Magics incubator.
Startups will be followed by a Program Manager who will support startup and partners in the project development and by the Digital Magics Team Mentors, with periodic meetings to track their growth, develop and improve the business model up to “go to market “.
Dozens of experts in marketing and growth hacking, lawyer, financials, platform and interface developers, successful startup and large corporates CEOs, managers and creatives will be the available advisors for the 10 teams of the program during the many training moments , courses, workshops and masterclasses.
After the first two months of acceleration there will be a second selection that, based on the achieved results, will elect the 6 best startups that will conclude the 6 months of the acceleration program. Finalist startups will receive a second grant of 15,000 Euros and will be the protagonists of an exclusive event that will involve the most important Italian and international investors and will have the opportunity to be part of the Digital Magics incubator, starting a high valuable course.
Digital Magics, Neva Finventures (Intesa Sanpaolo Group), Innogest and SellaVentures (Banca Sella Group) also decided to reserve the possibility of investing in the Magic Wand finalist startups that, at the end of the acceleration program, will have achieved the set goals and the KPIs.
Innovation Center will offer the 6 finalists access to their Fintech competence center, the opportunity to participate to international up-market platforms and partnerships with the most important research centers in the world, as well as to produce proof of concept on identified products or services.
SellaLab will provide participants with access to Platfr.io API platform, offer preferential terms for the package of products and services for startup, Up2Start, and the Gestpay e-commerce platform, as well as evaluate any type of partnership with the banking group.
“Magic Wand is the first of a series of acceleration programs, the result of a development strategy that rewards startups that deserve a privileged growth path. This is essentially a preferential lane, created in partnership with the project-holding companies, reserved for those who, through 6 months of work and above all the constant commitment required, will be able to reach the initially set goals and the KPIs that will measure their progress, “says Layla Pavone, Chief Executive Officer of Digital Magics for Industry Innovation.
The FinTech and InsurTech startup program was born from the idea of Michele Novelli, Senior Advisor of Digital Magics and industry expert, who said: “Financial and insurance services are huge markets, linked to every activity we do and in the near future we will see companies such as Google or Facebook entering these areas. A systemic approach that fosters the encounter of those who can manage innovative technologies and creativity with those who know the rules and the needs of the customer can also give birth to champions able to compete at all levels. ”
This Release is online (in Italian) at www.digitalmagics.com in the Investors / Press Releases section.
The creation of Fintech District took several months, time needed to build a project that was what the Italian fintech ecosystem was looking for.
Tens of realities, that have already been working in this field for years, were involved in to collaborate in identifying the project’s lines of action: know-how, technology and capital.
But who are the first members of Fintech District? Let’s find it out together.
Startups and affiliated partners
To this day, numerous well-known start-up companies and fintech companies and important partners that will provide services and support for the industry’s development have already joined.
Among the affiliated companies there are:
- Blender Italia
- Diaman Tech
- Digital Magics
- Lendix Italia
- Portolano Cavallo
- The ING Project (Tip Ventures)
On 26th September 2017, Fintech District was launched in Milan, the first gateway to the Italian fintech ecosystem that brings together startups , entrepreneurs, financial institutions, investors and universities, with the aim of fostering the financial industry’s future development and the growth of the companies in this industry.
The opening event was an occasion to discuss the opportunities and needs for the development of the Italian fintech ecosystem together with institutions, companies and industry and the hundreds of participants who took part to the event.
What is Fintech District?
Fintech District (www.fintechdistrict.com) is a community founded and promoted by SellaLab, the innovation platform of Banca Sella Group for startups and corporate companies, and Copernico, the platform for working spaces that promotes smart working.
Fintech District is located in Copernico Isola for S32, via Filippo Sassetti 32, in the heart of the financial district of the Lombardy capital. It is a hub where the main Italian actors have the opportunity to work together to foster the creation of industrial and commercial collaboration, attract new investments and boost the development of the fintech sector, like other international realities such as Level39 in London or Station F in Paris.
The goals of Fintech District
Fintech District aims to create a network of actors in the most innovative finance sector to contribute to the growth of the Italian business fabric through open innovation, meeting moments, sharing of best practices, pooling services and skills, launching new partnerships and organizing events for financial education.
The members of Fintech District are invited to actively contribute to the community they are part of, helping the development of knowledge and the identification of the evolutive lines of the sector and the regulatory framework, promoting the attractiveness of national and international capital, the diffusion of enabling technologies for new financial business models and helping to grow talented talents and offering their services on favourable terms.
The three pillars
The activities of Fintech District are based on three pillars:
– Know-how: pooling knowledge between community participants and strategic consulting firms, business and law firms, marketing agencies, businesses and financial institutions, to help adherents start new startups, discover opportunities, protect intellectual property, find financing and get to know the various regulations, and so on;
– Technology: availability of technological tools (eg software or platforms) for the ordinary management of activities or technologies enabling new business models;
– Capitals: involving incubators, accelerators, business angels and venture capital funds, also at an international level, that can make funding for new ideas and for participants in Fintech District.
Joining Fintech District means getting tools and opportunities to encourage the creation of new collaborations or strategic partnerships as well as to establish relationships with international associations and partner financial institutions.
Members also have access to industry conferences and events to identify the development lines of their projects and the industry in general, participate to pitch days to identify potential investors or new customers, and to access to technology solutions that can help to develop business model or business ideas.
In order to foster interaction among network participants, members of Fintech District also have access to various solutions and conditions to the space of Palazzo S32 in Via Sassetti 32 in the Isola district, owned by the Banca Sella Group and managed in collaboration with Copernico.
We are happy to share that FinLeap, startup focused on the support of the fintech entrepreneurs, has opened in our Fintech District in Milan for its first office outside of Germany!
In 2016 FinLeap with SolarisBank have created the “first” global banking platform, called Solaris – a Banking as a Platform (BaaP) service.
We would like to thank all of those who have participated at the opening event of the Fintech District on the 26th of September 2017 at its headquarters in S32, Milan.
Here we provide some of the articles that have been published referred to the event.
“Padoan inaugura il Milan Fintech District: ‘Qui l’innovazione crea lavoro'”
Ministero dell’Economia e delle Finanze
“Al via a Milano il primo distretto Fintech italiano”
Comune di Milano
“Padoan inaugura il Milan Fintech District: ‘Qui l’innovazione crea lavoro'”
Ministero dell’Economia e delle Finanze
“Al via a Milano il primo distretto Fintech italiano”
Comune di Milano
Nasce a Milano il primo «Fintech» d’Italia, il distretto della finanza 2.0
Fintech District, nasce a Milano il primo polo d’Italia dedicato alla finanza tecnologica