Strict EU Data Regulation Minor Hurdles For Fintech: Italian Ambassador to Singapore, Dante Brandi
The European Union's General Data Protection Regulation (GDPR), known for its strict data privacy rules, has sparked much debate about how it might affect EU fintech startups trying to compete globally. Some worry that GDPR could slow down innovation, especially when compared to places with fewer rules.
However, Italian fintech companies are taking a different view. They see GDPR not as a roadblock but as a chance to become leaders in responsible innovation. In an exclusive interview with Tech360tv, Mr. Dante Brandi, the Italian Ambassador to Singapore, shared how Italian fintechs are using GDPR to their advantage while also driving progress in different areas of fintech. Mr. Brandi acknowledged the concerns people have, saying, "Discussion on unintended consequences in terms of competition are recurrent for EU advanced legislations such as GDPR and this apply also to minor hurdles EU fintech companies can find when it comes to collecting data for AI training". He stressed that these are not impossible hurdles to overcome and that Italian fintech companies are actively looking for solutions to stay competitive. "Italian fintech companies are finding ways to stay competitive, through data minimisation and decentralised processing, which allow them to innovate while respecting data privacy laws", explained Mr. Brandi. These methods show a commitment to handling data responsibly while finding creative solutions that work within the GDPR framework. Being open and honest about data privacy is another important part of how Italian fintech companies operate.
"Transparency is another focus; Italian firms are very clear with users about how their data is used, which helps build trust", said Mr. Brandi. This dedication to clear communication helps build trust with users, which is essential in the fintech industry. Mr. Brandi is confident that focusing on security and privacy isn't just about following the rules; it's a smart move. "By positioning themselves as leaders in secure, privacy-conscious AI, Italian fintechs are not just keeping up - they are actually setting a standard that is likely to appeal to consumers and markets around the world who value ethical data practices", he stated.
Beyond navigating data privacy regulations, Italian fintechs are making their mark across a range of sectors:
On Digital Assets in Italy, regulators are actively encouraging innovation in the digital asset space. "In Italy, the fintech sector has been on a fascinating journey. When you look at digital assets, there’s a real push from the regulators to create a safe and transparent environment where innovation can thrive. This support has empowered companies to explore blockchain and digital asset technologies with confidence", said Mr. Brandi. This supportive regulatory environment is a major factor in the growth and innovation we see in the Italian digital asset sector.
Italian neobanks are also shaking things up in the traditional banking industry. "Neobanks are also making waves, focusing on delivering better, more affordable services to individuals and businesses that have often been underserved by traditional banks", noted Mr. Brandi.
As for AI adoption, Italian fintech companies are enthusiastically embracing AI and using it in many different ways. Mr. Brandi explained, "It is a game changer. Italian fintech companies are using it to offer personalised experiences, manage risks, and detect fraud more accurately. There is also a strong network of government-backed programs and academic partnerships in my country, which means the talent pool and resources for AI are growing and helping Italy compete globally in this fast-evolving field".
Italian fintechs are also particularly strong when it comes to innovation in payment systems. "Payment innovation is really a strong suit for Italian fintech companies, especially in areas like open banking, digital wallets, and cross-border payments", shared Mr. Brandi. He specifically pointed to open banking as an area where Italian companies excel, "breaking down barriers between platforms, making payments more seamless - a concept that fits right in with Singapore’s integrated financial systems". Mr. Brandi also mentioned that Italy is "leading in secure mobile payments, which would resonate well with Singapore’s tech-savvy, mobile-first market".
Mr. Brandi sees great potential for Italy and Singapore to work together in the fintech sector. "Italy and Singapore have a great opportunity here to foster fintech growth by supporting businesses that emphasise resilience and innovation", he believes. He suggested joint innovation programs and regulatory sandboxes as ways for Italian and Singaporean fintechs to test their solutions in both markets.
Mr. Brandi highlighted existing examples of collaboration, such as the partnership between AssoFintech, the Italian Fintech and Insurtech Association, and the Singapore Fintech Association. This partnership, he explained, "supports the development of Italian and Singaporean Fintech and Insurtech companies through the internationalisation of their research and development activities and funding sources".
The launch of Bridge 39/65, a dedicated fintech platform connecting Italy and Singapore, further demonstrates this collaborative spirit. This platform is designed to "provide specialised support and services tailored to fintech enterprises’ unique needs and requirements to become the focal point of convergence between the fintech ecosystems of the two countries".
Source: tech360tv