Invest in Finnovaction

The investment ideas on which our startup studio focuses on deeply are analyzed considering the main market trends, the needs of customers and partners, and the business intuition acquired in decades of experience of our team of banking industry experts.

Thanks to the know-how of our Venture Team and our analytical, design, and benchmarking capabilities, Finnovaction is able to deepen the business and operational model of projects with the highest potential and develop them with the involvement of pilot customers (co-design), up until their market entry.

Why to invest in the italian fintech sector?

Compared to Italy’s weight in the EU (10-12%), Italian fintechs represent only 6% of EU fintechs.

Why to invest in the italian fintech sector?
Why to invest in the italian fintech sector?
Why to invest in the italian fintech sector?

Why to invest in a startup studio?

Funding in fintech in italy (2016-2022) in millions €

Why to invest in the italian fintech sector?

Sucess rate of startup by type of startup studio (Excellent + Good)

Why to invest in the italian fintech sector?

Benefits for innovative startups

Investment taxation for innovative startups:

Benefits for innovative startups

Sources:

  • MISE
  • “De minimis” regulation (Regulation (EU) No. 1407/2013 of the Commission of 18 December 2013)
  • Relaunch Decree (DL 34/2020, art. 38, paragraphs 7 and 8)

Be part of the fintech landscape in Italy

Our investment strategy

In order to minimize the risks of the initiatives in the portfolio, Finnovaction’s strategy is to diversify investments into the 3 macro sectors of fintech activities:

• B2C: startups that provide financial services directly to end customers.

• B2B2C: startups aiming to support banks in managing their customers.

• B2B: startups built to fill gaps in products, services, and channel.

One of Finnovaction’s key competitive advantages is access to a series of “privileged” sources allowing it to select financial services sector ideas in which to invest:

• Network of Marketing and Innovation managers from major global financial institutions.

• Partnerships within the innovation ecosystem (e.g. associations, sandboxes, tech companies).

• Detailed lists of awarded innovations in the financial sector.

• Global observatory on new fintech and insurtech in the market.

• Map of ideas/speakers who have participated in international conferences.

• Connection with prestigious universities (e.g. Politecnico di Milano, Bocconi, BSS, Cà Foscari).

Our investment areas

Digital Wealth Management:

Refers to the digital tools that banking consultant networks, independent consultants, as well as asset managers, use to create unique experiences with their clients. These tools foster collaboration and can contribute to improving channel performance.

This business area offers several opportunities due to the sector’s low propensity for innovation, incomplete customer asset management, low operational efficiency of platforms, and new ESG and EU regulatory requirements (e.g. product pricing).

SME Valued Service:

Innovative services for SMEs (Small and Medium Enterprises) refer to solutions, products, and processes that improve the efficiency, productivity, and competitiveness of small and medium-sized enterprises through the adoption of advanced technologies. The main goal of innovative services for SMEs is to support financial institutions in facilitating the growth and expansion of these companies.

In Italy, the focus on this segment is sporadic, with institutions that are highly focused on SMEs but have limited innovation capabilities, and others that suffer from an elevated cost/income ratio.

Digital Customer Engagement:

Digital Customer Engagement refers to the set of strategies and technologies used by financial institutions to engage, interact, and communicate with customers through digital channels. The aim is to improve the customer experience, strengthen relationships, and increase loyalty.

In Italy, this opportunity is among the highest potential ideas, as it will be decisive in efficient economic management of the mass-market segment, and will allow for more effective and convenient management of the affluent and SME segments.

Insurtech:

Insurtech refers to the use of technological innovations aimed at providing savings and efficiency compared to the current models provided by the insurance industry. Insurtech is a combination of the words “insurance” and “technology,” which can improve the customer experience from product subscription to claims management with evident benefits both in terms of UX and economics.

In Italy, insurtech is the fintech sector with the highest growth rate, as the insurance industry is embracing the potential of digital channels and embedded insurance.

Generative AI & Machine Learning:

Generative AI & Machine Learning refer to the use of technologies that mimic human intelligence to execute complex tasks. They replicate the decision-making process to improve the way financial institutions analyze, manage, invest, and protect money.

In Italy, as for the rest of the world, AI is currently the most hyped topic in the market. Although it is not a technology born for fintech, it clearly has infinite use cases yet to be discovered by the majority of Italian financial institutions.

Embedded Finance:

Embedded Finance refers to the integration of financial services within non-financial applications or platforms. In practice, it means combining financial services such as payments, loans, insurance, investments, and wealth management directly into the user experience of other platforms or sectors, such as e-commerce, IoT, transportation, and technology.

Although it is not the flagship sector of Italian fintech, there are strong signs of interest from financial institutions (which are still on the sidelines).

Digital Assets:

A “digital asset” refers to any resource that exists in electronic format or has economic value. These assets are created, stored, managed, and exchanged digitally through computer technologies and online platforms. They include cryptocurrencies, tokens, digital securities, smart contracts, and digital intellectual property.

In Italy, it is practically a non-existent sector but with high potential. Abroad, the sector has already taken off years ago, incorporating important success stories that can be taken as inspiration.

Payments:

In the financial sector, payments refer to the payment methods and emerging technological solutions that improve, simplify, and speed up the process of transferring money between payers and beneficiaries. These solutions aim to make payments more efficient, secure, and convenient for consumers and businesses.

It is the sector in which Italy boasts two unicorns. The pace of innovation is high and constant, offering numerous points of interest (such as Buy Now Pay Later and related solutions).

Would you like to deepen on this topic? Let’s discuss it together.

Our business factory model

Finnovaction’s process to create startups is designed based on international best practices in the industry.

The average launch timeline for a new startup ranges from 12 to XNUMX months, allowing thorough examination of all business aspects and risk considerations. To manage the risks of ideas, the process includes four go/no-go checkpoints:

 

1. Idea validation (feasibility and potential).

2. Business Plan (based on business/operational model & assumptions test).

3. Partner engagement (value to the financial institution and willingness to co-invest).

4. Minimum viable product (tested in the market).

Our business factory model

Do you want to hear more about our metodolgy?
We’d be glad to explain it to you!