Milan Fintech Summit: Half of Italian Fintech Investors Focus on AI Innovations, Machine Learning, and Fraud Prevention

The fifth edition of the Milan Fintech Summit, an international event dedicated to the innovation of banking and financial services, organised by Fintech District, Italy’s leading community for the fintech and techfin ecosystem, and Business International, the knowledge unit of Fiera Milano, reveals that 50% of Italian fintech investors are keenly focused on innovations in artificial intelligence (AI), machine learning (ML), and fraud prevention solutions. This insight comes from a survey conducted for the Milan Fintech Summit, involving companies and industry experts who participated in the Roadshow stages, providing valuable perspectives on investment dynamics within the fintech sector.

THE SURVEY
The findings demonstrate a strong demand for innovative technological solutions, particularly in the areas of AI and fraud prevention, with investors actively supporting smaller businesses and emerging startups, reinforcing their commitment to nurturing these entities from their inception.

Another significant revelation is the high level of ambition among fintech companies regarding fundraising, with a substantial 92.6% planning to seek funding in the next 12 months. Notably, there is a focus on early-stage phases, with 75% of respondents at pre-seed or seed stages, and 81.5% actively seeking venture capital to support their development. Investor interest aligns closely with these early-stage trends, as 90% expressed a preference for investments in fintech and techfin companies at the pre-seed and seed stages. The survey also highlights the sectors attracting the most investment, with 50% targeting techfin solutions, followed by 25% in insurtech and another 25% in wealthtech. These insights illustrate the resilience and dynamism of the Italian fintech sector, driven by a constant
commitment to innovation. The survey results will enrich discussions at the Milan Fintech Summit, highlighting the latest trends that contribute to enhancing the growth and security of financial services and beyond.

THE NUMBERS OF FINTECH IN ITALY
With over 15,000 financial companies and 2,800 startups in Milan, the Summit reinforces the city’s status as a vital hub for financial innovation in Europe. This year’s edition, titled “Smells Like Fintech Spirit,” addresses key themes such as advancements in AI and embedded finance, promoting collaboration and innovation.

Additionally, data from the Italian Fintech Map 2024 will be presented – a ‘guide’ created by Fintech District and Politecnico di Milano, offering an overview of fintech companies active in Italy as well as European companies with Italian roots. The findings show that by the end of 2023, there were 622 fintech and insurtech startups in Italy.

Specifically, 35% of these have reached break-even, with a projected revenue growth of 60% compared to the previous year. Additionally, 46% of startups are seeking venture capital, with 13% in the process of securing funding.

These figures further highlight how the Italian market is becoming increasingly attractive to European and international operators. In Italy, fintech sector revenues grew by 60% in 2023 compared to 2022. Of the 622 fintech startups, approximately 15% are foreign companies, representing about 93 foreign startups operating within the Italian ecosystem.

In this context, the Fintech District community has consistently grown and now comprises 300 companies, making it the most relevant fintech and techfin community in Italy. About 30% of these companies are international, primarily from France, the United Kingdom, Germany, Switzerland, and the United States.

WOMEN IN THE FINTECH INDUSTRY
This edition of the Milan Fintech Summit, taking place on 8 and 9 October 2024 at the Allianz MiCo – Milan Convention Centre, marks a significant milestone for the Italian fintech community, not only from the perspectives of investors and SMEs but also regarding diversity and inclusion. The event features numerous speakers holding high-level corporate and institutional roles, including Alessandra Perrazzelli, Deputy General Director of the Bank of Italy; Anna Lambiase, Chairwoman of CDP Venture Capital; Francesca Carlesi, CEO of Revolut UK; Alberta Pelino, President of the Young Ambassadors Society and Founder of Fibi; Stefania Di Bartolomeo, CEO of Physis Investments; Silvia Attanasio, Head of Innovation at ABI; and Bianca Bonetti, Associate – Network & Engagement at Gyrus Capital.