The digital trasformation in the Italian banking sector

36 Pages Posted: 16 May 2022

See all articles by Davide Arnaudo

Davide Arnaudo

Bank of Italy

Silvia Del Prete

Bank of Italy

Cristina Demma

Bank of Italy

Marco Manile

Bank of Italy

Andrea Orame

Bank of Italy

Marcello Pagnini

Bank of Italy

Carlotta Rossi

Bank of Italy

Paola Rossi

Bank of Italy

Giovanni Soggia

Bank of Italy

Date Written: April 20, 2022

Abstract

Using a unique dataset based on the results of a survey of almost 280 Italian banks (Regional Bank Lending Survey), this paper presents early evidence on the digital transformation of the Italian banking sector over the period 2007-2018. By building a composite indicator that measures the digital supply of financial services, we show a growth in digitalization over the entire period, with a clear acceleration since 2013. The adoption of digital technologies is not homogeneous across banks and, to an even greater extent, business areas: digitalization started in payment services at the end of the 1990s and then spread to asset management, whereas the use of digital channels in lending is still less frequent. More recently, banks have also implemented new FinTech projects, mainly for digital payments and asset management activities. Lastly, we find a positive correlation between the intensity of technological innovation and bank profitability, and a negative correlation with the number of branches, signalling a potential substitution effect between physical and digital channels.

Keywords: banking system, Big Data, financial services, FinTech, technological innovation

JEL Classification: G10, G21, G23, L86, O33

Suggested Citation

Arnaudo, Davide and Del Prete, Silvia and Demma, Cristina and Manile, Marco and Orame, Andrea and Pagnini, Marcello and Rossi, Carlotta and Rossi, Paola and Soggia, Giovanni, The digital trasformation in the Italian banking sector (April 20, 2022). Bank of Italy Occasional Paper No. 682, Available at SSRN: https://ssrn.com/abstract=4109459 or http://dx.doi.org/10.2139/ssrn.4109459

Davide Arnaudo

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Silvia Del Prete

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Cristina Demma (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Marco Manile

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Andrea Orame

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

HOME PAGE: http://andreaorame.github.io/

Marcello Pagnini

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Carlotta Rossi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Paola Rossi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Giovanni Soggia

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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