Through the combination of Illimity, Fabrick, and HYPE, a new age of digital platforms could influence the future of Italian banking.
Illimity and Fabrick, both part of the Sella Group and focused on developing open banking and the Italian fintech ecosystem, have come together in a Joint Venture agreement in the fintech HYPE.
HYPE is a subsidiary of Banca Sella and a popular mobile banking platform in the Italian ‘challenger bank’ sector. The platform allows the legacy bank to expand its customer base and demonstrate its new bitcoin trading service in an effort to “build on its popularity with a largely millennial [and Gen Z] audience.”
HYPE is growing increasingly popular among young people and, after combining forces with fintech firm, Conio, the Italian challenger bank, which services 1.2 million customers, recently introduced the ability to buy bitcoin within its app. This means that, if you have a debit card with the firm, you will have the opportunity to “buy, sell, spend, and store the world’s largest cryptocurrency by market cap.”
The Joint Venture will be mutually beneficial for all parties, with the combined power of the three firms making the most of the new opportunities in the digital financial services and open banking markets, where a client segment is rapidly emerging. “In Italy alone, there are already over 2.5 million fast-growing clients: these clients are not interested in a bank, but in simple and ‘light’, easy-to-use solutions that respond differently to their financial needs.”
This move will achieve four key things:
- From a strategic perspective, HYPE’s ability to acquire new customers from more youthful generations will unlock a market that Illimity struggles to cater for, but will give HYPE access to Illimity’s customer engagement capability. This means that they will be able to “attract a growing number of customers”, thanks to