Digital banking in Italy’s industrial heartland at over 75% – BOI – One America News Network

June 28, 2023 TruthUSA

MILAN (Reuters) – More than three-quarters of the population in Lombardy, Italy’s largest and most industrialized region, banked online last year, compared with the national average of 63%, the Bank of Italy said on Wednesday.

Digital banking in Lombardy has grown 20 percentage points since 2015, the central bank said in a report on the region’s economy, which grew 3.8% in 2022, slightly above the national average.

The data supports No. 2 Italian bank UniCredit’s argument against acquiring Lombardy-based rival Banco BPM, a deal some shareholders have called for to strengthen its regional presence. In April UniCredit CEO Andrea Orcel said digital users helped his bank secure 11% of deposits in Lombardy, more than its 6% share of branches in the region suggested.

Italy’s ageing population spread over about 7,900 municipalities has been slower to adopt digital banking, a major way for lenders to cut costs, than in the UK and Nordic countries.

The number of bank branches in Lombardy fell 4% in 2022, bringing the total decline since 2008 to 39%, compared with 41% for the European Union, the Bank of Italy said.

Even with the reduction, Lombardy has 41 bank branches per 100,000 residents, against a national average of 36, it added.

To cut costs and upgrade its IT infrastructure, Italy’s biggest bank Intesa Sanpaolo this month launched its digital-only bank Isybank.

Citing Eurostat data, the Bank of Italy said 67% of Lombardy’s population in 2022 accessed banking services online. This is in line with the EU average and some 10 percentage points above the Italian average.

(Reporting by Valentina Za; Editing by Richard Chang)