“Talking about digital strategy today is already a mistake, we should talk about strategy in a digital world or at least one that no longer makes a difference between digital and physical”. To explain the new frontier of banking activity, in the era of the sharing economy and the new psd2 legislation, the European directive on digital payments "which dilutes the boundaries of the bank", is Andrea Coppini, Head of Digital & Innovation of Iccrea Banca, the group into which, upon completion of the mutual banking reform, most of the BCCs will converge in the forecasts.
At the end of this process, the Iccrea network should therefore boast more than 4 million customers throughout the country, with over 3.000 active branches. But the teller is part of the past, the present and the future are the construction of a network, a digital network "that rethinks the digital transactional model towards a relational model that places the customer at the center of a system of sales, consumption and assistance, which integrates data and information and extracts value from them”. No longer the digitization of the single operation, but platforms that can make the bank an Airbnb or an Uber of credit: “In times of sharing economy – explains Coppini – the bank must be able not only to sell products but also to connect customers, to bring together supply and demand, exactly like Uber which is worth more than any car manufacturer owning any car". This is why Iccrea has invested in two fintechs, Satispay and Ventis, which "are more than two products, they are investments that integrate the bank's strategy by bringing together customers, businesses and payment systems".
In particular, Satispay is a peer-to-peer payments platform, which allows you to send money to your contact list.
“Since we are talking about apps, I would also add that Satispay, in which we invested 3 million, acquiring 17%, works like Whatsapp: all you need is a person's phone number, and if this person has downloaded Satispay, linking a current account ( not necessarily of the BCC circuit but of any bank or postal account), you can recognize it and add it to the list of friends with whom you can exchange money with a simple click. Today there are already 100 customers of our BCCs who use Satispay".
Which is also and will increasingly be a digital payment tool in commercial establishments?
“Yes, at the moment there are 12.500 merchants participating, but we expect to reach around 100 by the end of the year, also thanks to an agreement with Uri Taxi which alone will contract around 12 taxi drivers. Important brands such as Grom, Benetton, Total Erg, Old Wild West, Venchi are already participating. The system is very simple because you pay the bill directly through the app and the shopkeeper just has to type in the receipt: a formula that is convenient for everyone, given that merchants do not pay commissions up to 10 euros of groceries and over 10 euros they pay only 0,20 cents per transaction. Today there is already the possibility of integrating Satispay with the POS system, given that we have an agreement with Ingenico for the latest generation POS, activation is managed by the merchant".
What is the value of the monthly transaction made with Satispay?
“Over two million euros, and each customer uses the app about 6-7 times a month. It is essential for a bank to seize this opportunity, given that the new psd2 directive has also authorized third parties, with a view to increasing competition and encouraging innovation, to manage accounts and make payments. For the banking system, this introduces a risk of disintermediation. I am thinking, for example, of Amazon, Google, Apple. These realities are a threat but also an opportunity that the bank must be able to seize, as we did by betting on Satispay”.
But what profit margin can the bank have on a product that is basically free, from downloading the app to the zero cost of the various p2p operations?
“None on a single transaction, but the expansion of the products and services that the bank can offer is the return, identifying new market areas and expanding the customer platform. The strength of the sharing economy is to sell the product where and when the customer requires it. Just think of a loan or insurance when purchasing a trip that takes place on specialized portals outside the classic banking channels. The bank must be able to offer its products and services not only on its touch points but where the customer's need arises".
Let's come to the other app, Ventis, which is nothing more than an e-commerce portal.
“Ventis is a young startup, of which we hold 95%: the remaining capital is held by 4 young entrepreneurs who lead a team of about 30 people and are making this important reality, born about a year ago, grow. It is a flash sales platform, that is on which high quality products are offered at very advantageous prices, with discounts of up to 70%, but for a short period of time. The products concern food and wine, fashion and the home. We are very competitive in the food and wine sector in particular because we exploit the added value of our CCBs, which are strongly rooted in the area and therefore capable of enhancing the excellence of local Made in Italy”.
How many customers are there and how much do they spend at the moment?
“There are 300 registered customers but we expect to double by the end of 2017, thanks to marketing activities, word of mouth and the network of contacts of our banks in the area. The average value of each purchase is 90-100 euros, as these are high quality products. There are around 1.400 companies that sell their products on Ventis”.
In this case, what added value do the CCBs give?
“The Bccs are in wonderful places on our national territory and have client companies that are excellent Made in Italy products to which the Bccs can today give the opportunity to scale nationally on an e-commerce portal where our customers, our web and mobile touchpoints, loyalty programs and payment systems - we also accept payments with Satispay - come together in a digital project in favor of our network".
