Playing together, even among different teams. The plural game of the Fintech District

To better explain this idea of constant and continuous movement, let's travel almost eleven thousand kilometers from Italy to Indonesia, not by chance standing out as one of the most technologically advanced countries in terms of value-added smartphone services. Just think that this Asian region is known for having the highest average time spent using connected smartphones in the world making it the fastest-growing mobile phone market. Here, tech convergence is also driven by motorcycles working as taxis. Physical and virtual services become available through superapps which - simply - aggregate multiple services on a single platform. We are specifically talking about a super app called Gojek  which was founded here in 2010. We are not talking about something insignificant: back then Indonesia was a pioneer in smartphone usability experiences. The name Gojek comes from 'Ojek' and it precisely refers to these vehicles, i.e. taxi motorcycles. The company was established thanks to the intuition of two former schoolmates, Nadiem Makarim and Michaelangelo Moran. It all started with just twenty vehicles, however, today the fleet exceeds 1 million drivers and offers 18 on-demand services. The strong acceleration came through a partnership with DBS, the largest bank in Singapore. Meanwhile, Gojek teamed up with the-commerce giant Tokopedia, to form the GoTo Group, ending up with Indonesia's largest tech company, boasting 100 million monthly active users, 11 million merchants and over 2 million associate riders with an estimated value worth $18 billion. GoTo Group offers a mix of e-commerce, on-demand and financial services, from online shopping to home deliveries. Executives described the new colossus as a blend of Amazon, Uber, Paypal and Stripe. An all-Eastern approach with an eye towards Silicon Valley and the global market.

The Customer: connected and at the center
Here then is the rest of the world, including Italy. From Jakarta, Indonesia's capital city spread over 664 square kilometers with a population of almost 10 million inhabitants rising to over 28 million if we consider the surrounding areas, we return to Italy, and precisely to Milan. Here in 2016 - and thus almost ten years ago, again the dates have enormous value - a fintech start-up was born that would go on the market two years later. Its success revolves around three different types of services in the world of payments, and sending money via SMS or Whatsapp messages, without knowing your bank details is one of them. "We have always been focused on the user experience and thus on the centrality of the customer in their own mobile experience. After all, we are a technology partner of large and established companies. Technology is essential, but even more so is the relationship with the connected customer." This is what Donato Vadruccio, originally from Apulia but now residing in Milan, a past executive in the banking sector and now a startupper, has shared with us. Just before turning fifty, he founded PayDo, marketing the Plick service. "a play on the word click because, ultimately, our service enables you to send money easily and securely." "The focus is on the technology driving the development of our software," explains Vadruccio, and it is emblematic of that generation of silver startuppers, so defined, a few months ago, by the American innovation bible TechCrunch. After all, he embodies the demonstration that innovation is not exclusive to the young. Today a more mature age group is stepping back into the game and particularly to do business in one of the most highly innovative sectors: finance. This service is now also included in the Banca Sella app making it possible to send money or - in other areas - even reimburse customers or settle claims. The team consists of approximately fifteen professionals, all with a background in financial and consultancy services. But there is more. PayDo with its service has decided to foster collaboration, even across different teams. And that is why - alongside nearly three hundred other companies with strong digital presence - it is part of the renowned Fintech District ecosystem. "For us, being part of it means creating value and continuing to improve as we engage with other entities in our sector," says Vadruccio. 

Let's move from the story of a startupper who radically changed his life to a similar one. This time we'll focus on an entrepreneur who moved from the Bank of Italy to a new adventure as the founder of Mopso, a regtech startup turned on amid the pandemic: Andrea Danielli. This startupper born in 1982, in Vimercate and now living in Milan, holds a degree in philosophy and has a passion for neuroscience and, ultimately, artificial intelligence, having pursued his studies between Milan and the Sorbonne University in Paris. After successfully competing for a position at the Bank of Italy, where he ranked among the top forty candidates out of thousands, he says: "I dropped everything and opened the startup with Enrico Fagnoni". Mopso develops software to help banks fight money laundering through a continuous risk monitoring platform incorporating advanced social network analysis. "The name is a classical quote: a little-known oracle from ancient Greece," explains Danielli. In simple words, it serves as a type of passport, similar to a universal key that opens all hotel rooms. "We refer to it as an anti-money laundering passport. According to the IMF, up to 5 per cent of global GDP is laundered every year. With this solution, allowing for significant streamlining of procedures, once the initial obligations are met, users can seamlessly access various services", Danielli points out. The company staff has seven professionals based in Italy and Luxembourg with a EUR 1.2 million pre-seed funding round. Its headquarters are in Viale Monza in Milan. "Digital identity is crucial as it provides the "antibodies" needed to protect us from money laundering activities. Compliance by definition does not generate business. That is why we are entering this field. We are currently hiring and looking for developers," says Danielli. Again, for this regtech, the Fintech District represents a valuable opportunity: a space for dialogue within a sector expanding with increased effort and awareness.

The door to the fintech ecosystem
Now, let’s look at the numbers. Each year, the Fintech & Insurtech Observatory at the Politecnico di Milano collaborates with the Fintech District to provide a map of the fintech sector. Here are some key statistics: there are 596 fintech start-ups in Italy (with 86 of them focused on the insuretech sector). Notably, more than half of these startups are part of the Fintech District community. Since its establishment eight years ago, it has significantly expanded and currently includes more than three hundred of these companies. Italy boasts the most significant fintech and techfin community, which also includes international companies, mainly from France, Great Britain, Germany, Switzerland and the United States, accounting for 30% of the total. Approximately half of the 596 entities (44%) anticipate reaching break-even by the end of the year with an average increase in revenues by 29% over the previous year. In terms of capital raised, there was a YoY growth of 44%. The financing acquired by 20% of these companies amounted to EUR 250 million, an increase from EUR 173 million in 2023. While these figures indicate a recovery, they remain significantly below the peak of 2022, (EUR 934 million). Despite the growth, 46% of fintech companies are still seeking capital and 41% offer services abroad: internationalisation still, remains an open challenge. Additionally, 26% of the 596 fintechs mapped have integrated generative AI-based solutions, implemented primarily to streamline internal processes, thus reflecting the rapid and increasing adoption of innovative technologies that can impact business operations.

"The Italian fintech landscape continues to evolve, with an increasing focus on technological innovation. Signs of maturity are also becoming apparent, as evidenced by increasing revenues and profitability, as well as the emergence of successful partnerships. The ability to attract capital and work more strategically and synergistically at the system level, while also supporting traditional players — primarily banks and insurance companies- in their evolution, will be crucial for accelerating the sector's development and enhancing its competitive position both in Europe and globally." So says Laura Grassi, Director of the Fintech & Insurtech Observatory and Professor of the Investment Banking and Finance Lab at the Politecnico di Milano. "The Italian fintech is in a phase of maturation and consolidation, driven by a growing ability to collaborate and create new synergies among the various players in the ecosystem. There is also increasing interest from international entities in our country," adds Clelia Tosi, head of the Fintech District. A path marked by digitalisation.

After studying economics and working as a consultant in the world of digital transformation within major Italian banks, in 2017 she began to study the fintech phenomenon and it was love at first sight. In 2019, she seized the opportunity to join the Fintech District team, which serves as the heart of the Italian fintech ecosystem.  Eight years since the community's inception, significant innovation has taken place. Today, generative AI is emerging as a powerful tool, evolving from a simple support mechanism to a technology capable of aiding strategic decision-making through increasingly specialized applications and personalized services. This trend is expected to shape the near future, alongside a strong commitment to governance, ethics, and regulatory compliance. Regulatory pressures and heightened awareness of climate risks will lead to an uptick in fintech solutions focused on ESG practices, particularly in the credit and payments sectors. New collaboration opportunities between fintech firms and traditional financial institutions will be essential for supporting technological progress, fostering sustainable growth, and expanding the range of services available to end customers. In this context, the integration of finance into business processes through the embedded finance model represents another key trend that is expected to characterize 2025, driven by the growing demand for increasingly fluid and personalized user experiences. Thanks to this approach, companies across any sector can integrate financial services tailored to their end customers' needs into their offerings without having to build a proprietary financial infrastructure or obtain regulatory approvals. Fintech District serves as the leading international community of reference for the Fintech and Techfin ecosystem in Italy. It acts as an ecosystem aggregator to foster the best conditions for all stakeholders -fintech, financial institutions, corporate companies, professionals, institutions, and investors- to work in synergy and find local and international growth opportunities.

Since 2017, fintech in Italy has evolved from an emerging phenomenon to a strategic sector increasingly integrating with the banking and corporate world. This field is continuously developing alongside new technologies, regulations, and business models. "This makes each day different from the following, requiring us to quickly adapt to changes and seize emerging opportunities. Fintech innovation thrives on the collaboration among start-ups, financial institutions, investors, and regulators. My role is precisely to create strategic connections, fostering dialogue among all players in the ecosystem thus accelerating the sector's growth. Working in the fintech field involves navigating stringent regulations, complex business models, and a competitive market. Every day presents a challenge to discover innovative solutions that deliver real impact and value". As Tosi points out, "Here is the gateway to the Italian fintech ecosystem."  "We aim to connect the dots by helping fintech companies grow, assisting corporations in understanding fintech to foster open innovation and promoting the culture of fintech and innovation in the market and to students. To do this, we organize and participate in events, create opportunities for meetings, develop projects and carry out research and reports, aiming to engage with the entire market and interact with all stakeholders, as we believe that true innovation stems from collaboration rather than competition. In addition to our activities within the national territory, we foster connections with countries across Europe and beyond. We also have a network of over 25 national and international ecosystem partners with whom we develop joint initiatives and participate in events. Notably, we are the organizers of the Milan Fintech Summit, an international fintech event that, in its fifth edition in 2024, attracted more than 1,300 participants and featured over 100 speakers from around the globe", Tosi concluded. From Italy, we look everywhere —much like the pervasive innovation that defines our mobile consumption.