Our investment areas

SME SERVICES

Finnovaction’s SME services in the fintech sector include digital solutions for both the B2C market (where the SME is the direct customer) and for B2B and B2B2C initiatives. These services cover a wide range of offerings, like financial management, payment and collection solutions, financing options, cash flow management, and personalized consultancy.

Investment worth:

The fintech services market for SMEs is particularly attractive for investors due to the vast base of SMEs (99.7% of the Italian entrepreneurial fabric) and their need for personalized, efficient, and accessible financial solutions. The B2C context sees a growing demand for more agile and intuitive financial tools for SMEs. In the B2B and B2B2C context, collaboration with other companies opens new revenue channels and creates opportunities for innovative solutions, meeting the banks’ need to evolve their business model towards SMEs with the entry of new players.

Finnovaction’s commitment:

Finnovaction is dedicated to developing a wide range of fintech services for SMEs, addressing both direct businesses (B2C) and corporate collaborations (B2B/B2B2C). Our goal is to provide solutions that not only simplify SMEs’ financial management but also create synergies among different market players, increasing the long-term sustainability of Italian small and medium enterprises. Through advanced digital platforms, Finnovaction aims to offer personalized financial tools, cash flow management support, and access to innovative financing. Additionally, the company wants to be a strategic partner for other businesses wishing to offer services to SMEs, facilitating integration and collaboration across different sectors, creating a more cohesive and efficient financial ecosystem.

WEALTH MANAGEMENT

Wealth management is a financial service that involves managing an individual’s or a family’s wealth to optimize their financial assets. This sector provides personalized advice and services for investment management, estate planning, tax planning, and overall financial resource management.

Investment worth:

There is a growing demand for wealth management services due to the increasing individual and family wealth globally. Investors see an opportunity to meet this growing demand. The wealth management sector offers investors the chance to capitalize on the increasing demand for personalized financial services, generate revenue through fees and commissions, and build long-term relationships with high-profit clients.

Finnovaction’s commitment:

The wealth management sector is rapidly changing to adapt to market evolution in terms of digitization, investment sustainability, and changing needs of new generations in wealth management. Finnovaction aims to bring digital innovation to wealth management companies by introducing integrated management platforms, providing advanced analysis tools using AI to analyze real-time market data, optimizing operational processes, and offering integration services with other fintech platforms that provide complementary solutions. This strategy allows wealth management companies to expand their service range to clients.

EMBEDDED FINANCE

Embedded finance refers to the ability of companies outside the financial sector to include financial services within their offerings, complementary or additional to the products and/or services provided.

These services can be sold through a financial partner (e.g., a bank, an insurance company) or through partnerships with fintech, insurtech, wealthtech, paytech, etc. Common examples of embedded finance include insurance coverage offered at the end of the online purchase process of a good or a trip.

Investment worth:

Embedded finance is rapidly gaining the trust of end consumers. According to a recent survey by Solaris Bank in collaboration with Roland Berger, 41% of embedded finance service users find the purchasing experience simpler than dealing with banks and insurance companies, especially concerning onboarding procedures (KYC) and check-out. The embedded finance market size was estimated at $58 billion in 2022 and is expected to register a CAGR of over 29% between 2023 and 2032. The implementation of the Financial Data Access (FIDA) regulation in 2026 is anticipated to provide an additional boost by allowing customers to grant a financial third party or FISP (Financial Information Service Provider) access to their entire financial position, enabling them to offer alternative, more personalized, and competitive products and/or services compared to those already held.

Finnovaction’s commitment:

In pursuit of sustainable growth in the financial services market, Finnovaction intends to invest in the embedded finance market by launching fintech, insurtech, and wealthtech services that can either be integrated with third-party products or integrate third-party services. This aims to enable end consumers to access banking and financial instruments more easily, competitively, and inclusively, and allow corporations to benefit from economic and process advantages resulting from embedded finance.

LENDING

Lending, in the fintech domain, refers to the use of digital technologies to support banks in offering loans to individuals or businesses, or to facilitate the process directly. This includes personal loans, business loans, peer-to-peer lending, microfinancing, and other forms of credit.

Fintech technology simplifies and speeds up the loan application and approval process, reducing bureaucracy and associated costs. This may involve automatic analysis of a client’s creditworthiness, the use of algorithms to determine interest rates, and the ability for users to manage loans through mobile applications or online platforms.

Investment worth:

The fintech lending sector is gaining popularity due to its ability to provide access to credit more efficiently than traditional methods. In a market projected to grow at an average rate of 5%, creating opportunities to reach underserved or underserviced customers, especially in regions with low banking penetration, represents a considerable opportunity. Competition from challenger banks and specialists is also pushing traditional banks to seek white-label lending solutions, promoting efficiency and improving the user experience.

Finnovaction’s commitment:

Finnovaction is actively exploring opportunities in the fintech lending sector. We aim to develop innovative loan solutions that can meet the needs of various market segments, from providing microfinancing for small businesses to offering personalized loan solutions for individual consumers. Through the use of advanced technologies such as artificial intelligence and data analysis, Finnovaction intends to offer faster, more convenient, and personalized loans, contributing to democratizing access to credit and supporting economic development.

INSURTECH

The insurtech sector defines digital innovation in the insurance industry. There are essentially two types of insurtech. The first involves insurers underwriting policies, distributors selling and servicing customers, and third parties handling other components of the value chain such as claims management. The second includes product companies providing software and data to insurance companies, with emerging platforms connecting various players efficiently.

Investment worth:

The insurance sector is massive, with $7 trillion in global premiums and highly prone to disruption. Operations in this sector require data and computations, automation of manual processes, and radical innovation in customer experience. From 2013 to 2023, Venture Capital investments in the insurtech sector were approximately $50 billion, with 55% in America and only 21% in Europe, indicating growth opportunities for innovation in Europe.

Finnovaction’s commitment:

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DATA MONETIZATION

Data monetization in the fintech sector refers to the use of financial and non-financial data to create new sources of income. This may include customer data analysis to offer personalized products, selling aggregated information to third parties, or using data-based insights to optimize existing products and services.

Investment worth:

According to an IDC report, the volume of data generated by banks and insurers in Italy is expected to grow at an average annual rate of 20% in the next five years. Data monetization offers a significant market potential, with McKinsey reporting that banks and insurers using data effectively can generate a revenue increase of 10-20%. Extracting useful information for decision-making and automating processes will be a hot topic in the banking and insurance sectors in the coming years, supporting financial institutions in differentiating themselves by offering greater personalization and improving the customer experience.

Finnovaction’s commitment:

Finnovaction is strongly committed to developing data monetization strategies, recognizing the value that data can bring to the fintech sector. Our startup studio focuses on advanced analytics and artificial intelligence to analyze and interpret financial data. This approach identifies market trends, consumer behaviors, and investment opportunities, transforming data into valuable insights. Additionally, Finnovaction is exploring partnerships with other companies and financial institutions to enrich its data ecosystem and expand monetization possibilities. This includes developing customized solutions for specific clients based on in-depth data analysis and creating new products and services that leverage the power of data to provide added value to customers and stakeholders.

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