The rise of online banks in Italy “WIDIBA Bank” Case Study

Abstract

The digitalization of technologies for the functioning of the country’s economy, in particular banking institutions, has made a significant impetus to accelerate their development. It is stated that the use of advanced information technologies in the banking sector of the economy (which was gradually formalized into the concept of “online banking”) has greatly facilitated the implementation of financial transactions, in particular, minimized the physical circulation of money. The purpose of the article is to study the features and principles of online banking on the example of the Italian bank WIDIBA. Methodical support of the paper includes a method of analysis of specific situations. The key components of the case method of the study are research on the basis of literature review; formalization of key theses (issues) in the context of the unresolved part of the study; accumulation and analysis of collected information; identification of key features of the issue. This research was carried out in the light of two aspects: the strategic principles of the spread of online banking in Italy; digital technologies in the context of the strategic perspective of the Italian bank WIDIBA. The paper considers the historical aspects of the introduction and use of online banking services. It is noted that in Italy today there are 207 publicly registered commercial establishments, of which 81 are located abroad, and 6 operate mostly in the format of providing online banking services. The object of this research is the activity of the Italian bank WIDIBA, which is justified by its valuable practical experience in formalizing a plan of adequate timely strategy for entering the market of online banking services on the basis of a carefully developed development strategy. The theoretical researches were carried out in the work, in particular, in the following directions: definition of strategic actions of bank establishment according to a time lag of functioning; analysis of the budget of the banking institution (net profitability, interest margin, operating and administrative expenses, etc.); analysis of the income statement of the bank (the ratio of net profit and loss, interest margin and brokerage margin); work with financial report or balance sheet data on the structure of assets, liabilities, and investments, retained earnings; study of trend dynamics of cash flows (operational, financial, investment and free cash flows). Excellent strategies are analyzed, which demonstrate how the banking sector is extremely dynamic and, that technological investments still allow easier access to new operators in case of the implementation of innovation strategies. Keywords: Online banks; online banking; electronic banking; fintech; financial services; WIDIBA; banking sector; banks’ strategies.

Fintech Frontiers in Quantum Computing, Fractals, and Blockchain Distributed Ledger: Paradigm Shifts and Open Innovation

“…A digital bank would behave in the same way at the branch, at the head office, on an online service delivery platform, at ATMs, and vending machines. Many other banking/insurances functions can be managed online, such as (a) risk management, (b) treasury, (c) product development, (d) marketing, and (e) relationship-based sales teams [96,97].…”

Online Banking in Italy. “Widiba Bank” Case Study, PESTLE and DEA Analysis

“…However, these skills are not always immediately available within the labor market or are not, at least, at convenient conditions. In the case of Widiba, the wide network of consultants that assist the customer already resulted to be a key factor for its success (Faccia et al, 2020) [1].…”

“…Less than one year ago the article «The rise of online banks in Italy "WIDIBA Bank" Case Study» (Faccia et al, 2020) [1] was published, and many researchers already downloaded and cited it, demonstrating the high interest in the topic. The case study is particularly appealing since it is a leading example of how latecomers can succeed in the fintech industry.…”

Readiness for implementing innovations in banking in advanced and emerging economies

“…Fourth, modern technologies provide an opportunity to expand service geography and increase customer base since customers have access to many banking services without visiting a bank branch. Besides, the banking institution image regarding the use of modern information and communication technologies also contributes to the growth of the client base (Faccia et al, 2020). According to Yarovenko et al (2021), it is advisable to implement biometric technologies to reduce operating costs and to identify customers in mobile devices to improve customer service for banks remotely.…”