• Italian FinTech was on track to more than double in 2022 based on investment in the first half of the year although proposals from new Italian leadership may cause havoc for some subsectors and opportunities for others. During her campaign Giorgia Meloni proposed tax cuts for individuals and businesses, combined with more social spending, like higher pensions and benefits for families which would be expensive to implement, and a loose fiscal policy would lead to higher borrowing costs for Italy. Pressure on the financial sector will likely cause foreign investment to quiver, especially if the market fears that the ECB could stop buying Italian bonds under its recently outlined transmission protection mechanism.
• Sectors that could see negative effects of the new Italian economic direction include PayTech with companies such as Scalapay, a buy now pay later platform, likely to suffer as a result of a more costly borrowing environment due to higher interest rates which will cause lower margins. On the other hand a high interest environment could see new disruption from WealthTech companies, capitalising on increased banking sector profits which happens because savings have higher returns for customers.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2022 FinTech Global
