Financial innovation and new banking models

Financial innovation is changing the way we think about banking. We are seeing the use of technologies such as generative AI and tokenisation. These innovations are creating new banking models.

The digitalisation of the financial sector is advancing rapidly. What once took years is now achieved in just a few years. 2026 will be a crucial year for the adoption of these technologies.

Developments such as tokenisation and AI agents are changing the sector. However, clear rules are also needed to ensure these innovations create value.

In Italy, the use of fintech has grown since the pandemic. Now, half the population uses digital banking services. A third pay with their smartphones.

Innovation also requires a team with the right skills. People with STEM skills and continuous learning are needed. DESI has highlighted a shortage of digital skills in Italy.

In the following chapters, we will explore global and national trends. We will look at the role of FinTech and the infrastructure needed, such as API and real-time payments. We will also analyse tokenisation and regulatory challenges, as well as regtech, cyber resilience and training.

Financial innovation: trends and impact on the banking system

Financial innovation is changing services and infrastructure. In 2025-2026, the use of AI and tokenisation will grow. The digitalisation of the financial sector improves operating models and the services offered to customers.

Overview of global and national trends

Trends for 2026 include generative AI and tokenisation. International projects show the way forward. For example, asset tokenisation is being promoted by major asset managers.

In Italy, the fintech sector has seen significant growth since the pandemic. The emergence of digital banks and payment apps has brought more than 500 new providers to the market. This has increased competition and the range of digital services available.

Effects on productivity and growth

The use of cloud technology, API and RPA supported by AI improves banking productivity. International studies show that digitalisation brings productivity gains.

Businesses and households see tangible benefits. Intermediation costs fall and access to investments becomes more democratic. Banks that modernise their systems can grow more.

Risks and governance

Innovation introduces new risks: ICT risk, algorithmic bias and vulnerabilities in generative AI. Good AI governance is essential to protect customers and markets.

European and Italian authorities are updating the rules. The new regulation includes measures for digitalisation and operational resilience. Instruments such as DORA help strengthen institutions’ defences.

Trend	Operational impact	Main risks
AI banking	Automated decision-making and personalised services	Algorithmic bias, AI governance
Tokenisation	Liquidity and access to fractional assets	Market risk, exposure to digital counterparties
Real-time payments	Shorter settlement times and improved treasury management	Interoperability, ICT risk
Green & ethical fintech	Sustainable products and new customer segments	Greenwashing, certification standards
RegTech	Automated compliance and continuous monitoring	Dependence on third-party providers, algorithmic shadow IT

FinTech and new service models: from digital banks to embedded finance

FinTech has changed the way we think about the financial sector. In Italy, more than 500 start-ups and scale-ups are transforming the sector. More than half of Italians use online banking and a third make payments with their mobile phones.

The evolution of FinTech in Italy

FinTech combines finance and technology. After the 2008 crisis, we saw a change. Now, banks and fintech companies work together.

Start-ups offer services such as payments and loans. Intesa Sanpaolo has invested in a digital bank with Thought Machine. Mooney combines digital services with a physical network, serving millions of customers.

BacktoWork24 and Yolo are examples of crowdfunding and tailored insurance.

Partnership models between banks and fintech companies

There are two ways of working together: competition and collaboration. In Italy, collaboration is more common. Fintech companies work with banks to address costs and technical requirements.

Banks can innovate faster. They use API and sandboxes to test solutions. Groups such as Intesa Sanpaolo invest in new ideas.

Embedded finance and enhanced local access

Embedded finance places financial services within non-financial experiences. For example, you can make payments directly on an e-commerce site. This makes services easier to use.

Enhanced local access combines digital and local services. Solutions such as physical locations offering digital services help small businesses. AI personalises banking offers.

Area	Examples in Italy	Operational impact
Digital bank	Intesa Sanpaolo & Thought Machine	Speed to market, modern UX, reduced operating costs
PayTech and local access	Mooney (physical network + digital services)	Access for users who do not use digital services, geographical coverage
Crowdfunding and lending	BacktoWork24	Alternative financing for SMEs, capital diversification
On-demand insurance	Yolo	Modular products, real-time purchasing
Technical integration	Banking API, PSD2, sandbox	Rapid experimentation, interoperability between participants

Open banking, APIs and real-time payments as enabling infrastructure

The financial sector is changing thanks to digital tools. Open banking has paved the way for personalised services. This is thanks to APIs that provide secure access to accounts and data.

PSD2 has provided a major regulatory impetus. It has created fertile ground for innovation. This has had a major impact on banks and fintech companies.

The role of APIs and PSD2

Bank APIs connect external applications to important functions. PSD2 has made controlled access mandatory. It has also encouraged competition.

Banks that modernise their systems reduce risks. They also improve governance of cloud providers.

Instant payments and programmable payment flows

Real-time payments have become the standard. Event-driven architectures enable instant payments. Automated risk engines respond quickly.

Programmable payment flows help create adaptive payments. This includes payroll, collections and payments for AI agents.

Interoperability and infrastructure initiatives

Interoperability is essential for cross-border payments. It also helps integrate legacy systems with the cloud. Projects such as shared ledger trials are under way.

The initiatives involve Banca d’Italia and BCE. They aim to integrate tokenisation into euro settlement systems. This allows institutions to offer global services while maintaining a local relationship.

Technological development is driving the move towards common standards. This includes tokenisation and real-time payments. The pressure to transform traditional systems into open platforms increases competitiveness.

This reduces operating costs. It also makes it easier to use new fintech applications.

Tokenisation, stablecoins and digital money: opportunities and regulatory challenges

Tokenisation opens up new ways to represent bonds, funds, loans and property on distributed ledgers. This approach reduces reconciliation work, speeds up settlement and broadens access to investments.

Blockchain in finance is at the centre of trials involving major institutions and market infrastructure. Projects such as those supported by SWIFT and banking consortia show that asset tokenisation can improve liquidity and simplify secondary markets.

Regulated stablecoins and tokenised deposits aim to become components of corporate treasury operations and payments. Their adoption depends on regulatory confidence, the ability to integrate with business management systems and technical interoperability.

Regulation of digital financial services requires clear standards for the issuance and operation of digital money. The European Digital Finance Package provides an initial framework, while the AI Act and DORA impose requirements for high-risk systems and digital operational resilience.

Digital asset oversight involves authorities such as Banca d’Italia, Consob and IVASS in supervising critical entities and penetration testing. Defining the roles of national and European supervisors remains essential to avoid cross-border fragmentation.

In Italy, initiatives such as Appia and Pontes seek to integrate solutions based on blockchain in finance into settlement processes. Participating in consortia and investing in compliance is crucial for banks that do not want to lose ground.

Key emerging challenges include investor protection, managing disintermediation and operational risk. Competition will shift towards usability and integration, not just the cost of digital money.

International rules, such as federal laws and European frameworks, are making the landscape more predictable. However, questions remain about technical standards for tokenisation, secondary markets and the responsibilities of critical providers.

An orderly transition requires dialogue between regulators, banks and the technology sector. Targeted investments in governance and compliance can turn asset tokenisation opportunities into real value for the financial system.

RegTech, cyber resilience and human capital for a sustainable transformation

Italy’s banking landscape is changing rapidly. Technology and regulation are coming together in new ways. Thanks to RegTech, banks can monitor operations more effectively and carry out automated audits.

Digital regulation, such as DORA and the AI Act, sets new standards. These help improve risk management and make systems more resilient.

Solutions based on artificial intelligence improve security. They reduce errors and speed up reporting. Banks such as Intesa Sanpaolo demonstrate how partnerships with universities can be decisive.

Threats such as phishing and data manipulation require up-to-date defences. Testing, advanced encryption and sharing threat intelligence are essential for resilience.

Human capital is essential in the new digital world. The skills gap in Italy calls for continuous training. Reskilling and upskilling help develop staff and support the fintech economy.

Collaboration between banks, research centres and authorities is crucial. Regulatory sandboxes promote dialogue on digital regulation. This helps strike a balance between security, innovation and sustainable development.

To support resilient business models, the sector must invest in skills. The combination of RegTech, security and training creates a strong ecosystem. It develops human capital and ensures lasting technological transformation.

Conclusion

Financial innovation brings together artificial intelligence, tokenisation and real-time payments. This changes the future of banking. In Italy, the fintech sector has made progress, but there are still challenges to overcome.

Looking ahead, we need to prioritise certain areas. Governance and supervision need to be strengthened. It is important to invest in human capital and promote interoperability.

Banks and businesses that adopt an open approach have a greater chance of success. This is because they can work more effectively with artificial intelligence and financial technologies.

The message for Italy is to act in a “glocal” way. Scale needs to be connected with local proximity through partnerships. This way, digital transformation will lead to better services for everyone.