Online banking in Italy - statistics & facts
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More and more banks are embracing the digital transition and shifting towards online banking solutions. This is no surprise, as online banking comes with many advantages. For customers, online banking allows access from anywhere and anytime to almost every service traditionally offered by banks without having to physically visit their branches. For banks, online banking permits them to enhance their customer experience and decrease total maintenance costs by reducing the number of branches.
In Italy, this digital transition and the rise of online banking can be seen, for instance, by observing the penetration rate of online and mobile banking or the fintech revenue. Online banking penetration in Italy has increased steadily over the last few years, and it is expected to grow further in the future. In Europe, Italy's online banking industry ranks above the average. Fintech revenue was close to one billion U.S. dollars in 2023, and in terms of fintech user base, Italy ranked fifth, trailing behind Germany, the UK, France, and Spain.
While Italy's digital banking sector continues to grow, traditional banks maintain their market dominance through superior financial performance and customer service. However, the rising adoption of digital banking services suggests a future where both models will coexist to serve customers' diverse needs.
In Italy, this digital transition and the rise of online banking can be seen, for instance, by observing the penetration rate of online and mobile banking or the fintech revenue. Online banking penetration in Italy has increased steadily over the last few years, and it is expected to grow further in the future. In Europe, Italy's online banking industry ranks above the average. Fintech revenue was close to one billion U.S. dollars in 2023, and in terms of fintech user base, Italy ranked fifth, trailing behind Germany, the UK, France, and Spain.
Online and mobile banking, what is the difference?
Online banking includes any transaction conducted over the internet. On the other hand, mobile banking refers specifically to banking operations performed using a tablet or a smartphone. Hence, mobile banking includes logging into a bank’s mobile website, text messaging with the bank, or using its mobile app. In Italy, mobile banking usage has increased in recent years, while online banking usage has decreased notably. Despite the downward trend, online banking remained one of the most popular methods of processing banking affairs in 2024.Digital banks vs traditional banks
While digital banking has certainly increased in popularity, financially, traditional banks are still in a much better position. In 2023, the net interest income of the banking industry as a whole, for instance, was four times higher than the net interest income of digital banks. This comes as no surprise, as the value of loans provided by digital banks, though increasing sharply in recent years, is much lower than the total value of loans to households. In addition to their financially superior position, traditional banks still provide some customer-oriented advantages over digital banks. One of these advantages is the better customer service, which was the main reason for favoring traditional banks over online banks in 2022.While Italy's digital banking sector continues to grow, traditional banks maintain their market dominance through superior financial performance and customer service. However, the rising adoption of digital banking services suggests a future where both models will coexist to serve customers' diverse needs.
