Banks that spend money on fintech tasks for buyer analysis grant modern firms which can be already their clients extra loans and at decrease charges than different intermediaries. Fintech investments are related to longer-lasting credit score relationships and don’t result in important adjustments within the probability of credit score high quality deterioration.
These are the conclusions reached by a research entitled “Whoever is alike is alike: the elective affinity between banks and innovative companies”, printed by the Bank of Italy.
Banks – the research finds – can spend money on fintech tasks to enhance their means to judge the creditworthiness of shoppers. The work research the impact of those investments on the availability of credit score to firms, specifically for youthful and extra modern ones.
The evaluation is predicated on information from the Central Credit Register and on info on the monetary innovation of banks taken from the regional survey on financial institution credit score. Innovative firms are recognized on the idea of the particular part of the Business Register launched by the Start-up Act of 2012.
Investments in modern applied sciences within the two-year interval 2023-2024 made by banks and non-bank intermediaries amounted to roughly 1 billion euros; an identical quantity can also be estimated for the next two years, for a rise of 1.4 p.c. This was revealed by the Fintech Survey within the Italian monetary system (fifth version) launched earlier than Christmas by the Bank of Italy. Spending – he provides – could be very concentrated amongst a couple of intermediaries and, according to earlier editions of the survey, banks are the principle buyers in modern applied sciences.
Payments, credit score intermediation and operational actions stay central (88.5% of the overall); the burden of the funds space decreased considerably in favor of operational actions.
https://www.ilsole24ore.com/art/imprese-innovative-banche-che-finanziano-fintech-prestano-piu-e-meglio-AIIW6Ka