Bolzano

14-15 November 2024

Paying at the click of a mouse is something we do every day, but it is also the result of a historic change: the digitalization of banking activities. New technologies are transforming services and business models in the financial system, which includes banks and other operators through which we pay, save, borrow and invest. This means not only opportunities and benefits but also new risks to the stability of the system and the protection of its customers. Banca d’Italia has the task of ensuring both, so it is monitoring things closely; on 15 November, it discussed this topic with people in Bolzano during the main event of the 'On the Road' tour, entitled 'Financial stability and consumer protection'.

Alessandra Perrazzelli, Deputy Governor of the Bank of Italy, said that 'in Europe, we have chosen an approach that focuses on regulation, the creation of fair access, data protection, and the possibility of putting the individual at the centre, treating data as a personal asset and not as a commodity that can be traded in some way'. In any case, this development requires convergence among countries to protect the stability of the financial system because 'platforms know no borders'.

Perrazzelli added that 'regulation and innovation must find a way to coexist, to allow for good innovation'. Rules, however, can also be resources for businesses: among various start-ups and fintech companies, 'those that have used regulations to strengthen themselves and become trusted counterparts for users have become stronger'. Customers need to acquire basic knowledge about money management through financial education and the use of digital technologies.

Financial education is one of the tools Banca d'Italia uses to protect customers in the financial system, along with rules, controls and self-protection mechanisms (such as complaints to the institute and appeals to the Banking and Financial Ombudsman). According to Magda Bianco, Head of the Directorate General for Consumer Protection and Financial Education Department at Banca d’Italia, to counter the risks of digitalization, these tools need to be combined with innovation governance that makes the benefits of new technologies available to everyone. She said that 'many regulations are accompanying digitalization […] sometimes it may seem that they overload the system, but they are designed to protect all citizens, especially the most vulnerable'.

Robert Zampieri, President of the Regional Commission of the Italian Banking Association (ABI) in the Autonomous Province of Bolzano, stated that 'the South Tyrolean banking system is very healthy and very stable, and we have emerged from recent crises stronger than others'. According to Zampieri, this 'may be the result of the banking biodiversity we have in South Tyrol', and therefore he hoped that their supervision would be tailored 'with a special focus on these very, very valuable and unique features'.

'I don't think we can say that small banks will disappear', said Ida Mercanti, Deputy Head of the Directorate General for Banking and Financial Supervision at Banca d'Italia. However, biodiversity 'doesn't just mean big and small banks, but also other operators', and so the concept should be understood much more broadly. 'Being healthy and prudent in the old-fashioned way is no longer enough, because challenges and risks come into the house through the digital world, for example', Mercanti added. 'This means that maintaining the current infrastructure is not enough'.

Heiner Oberrauch, President of Confindustria Alto Adige, gave the point of view of industrialists. In the province of Bolzano, politics should follow three main paths: 'focusing on companies that pay well, because we are an expensive territory, looking at companies that produce significant profitability for the wealth of our provincial balance sheet and prioritizing protection'. Oberrauch believes it is necessary to concentrate on specialization and focus on innovation.

Michl Ebner, President of the Chamber of Commerce of Bolzano, focused on small businesses, which 'often struggle to access traditional financing such as bank loans, due to strict requirements or poor credit history'; although financing difficulties are 'significant', 'there are various strategies and resources available to overcome them'. According to Ebner, investing in digitalization not only improves operational efficiency but also opens up new market opportunities.

On 14 November, the other three parts of the event took place. In 'Beware of online scams!', experts from Banca d'Italia and the Banking and Financial Ombudsman, along with representatives of the Consumer Protection Centre, explained to the audience how to protect themselves from online payment scams. In 'Financial education and multilingualism', experts from Banca d'Italia, representatives from Pensplan Centrum, and university professors discussed financial education from a language perspective. Finally, during its open day, the Bank's local branch welcomed citizens on guided tours, also illustrating the services provided.