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Archive » October 2020 » The Italian banking industry amid economic difficulties and technological challenges

The Italian banking industry amid economic difficulties and technological challenges

Alessandra Perrazzelli
October 2020 - n. 10
Keywords: Banche, crisi, Open banking
Jel codes: G21, G28, M15

For Italian banks, the pandemic strengthens the challenge of profitability, which requires an acceleration in increasing revenues and reducing costs. Possible roads include integrations, if well designed, but also consortium agreements and outsourcing, to expand services while keeping costs under control and diversifying the risk of investments in innovative sectors. Each phase of the chain, even key processes, can be unpacked and recomposed, especially in areas with low margins and high volume requirements. However, there are strategic, operational and reputational risks, as demonstrated by the collapse of Wirecard, which served a large number of intermediaries around the world. It is therefore important to strengthen the rules, increase the exchange of information and the supervision of the Authorities in order to address the new risks.

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