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The wave of mergers and acquisitions that has affected the Italian banking sector in the last 30 years has led to a drastic reduction of our country’s banks and their strong concentration. According to a study by First Cisl, today there are 434, up from over a thousand (1037) in 1993.
Italy thus remains ahead of France (394), but behind Poland (573) and Austria (443). Germany, which can still count on 1,381 banks, is very far away.
As the general secretary of the CISL banks, Riccardo Colombani, recalls, «the slimming treatment of our banking system began in the 90s and continued through the financial crisis of 2008, the reform of the cooperative banks and that of cooperative credit». This process, however, triggered the parallel process of the banking desertification of the territories. «The number of branches reached its maximum in 2008 (34,139) and then began a very rapid decline that has not yet stopped (20,909 at the end of 2022). In the first part of 2023, another 593 were closed”, calculates the First Cisl study.
The new demographic balance
The evolution of the sector is accompanied by the progressive aging of the population. Thirty years ago, Italians over 65 were 16%, while young people under 15 were 15.1%. There was therefore a substantial balance that no longer exists today. The over 65s are 23.7% and have practically doubled the under 15s (12.8%). Our country does not shine for the use of internet banking, especially among the elderly. «The aging of the population and the low level of digital skills among the older age groups explain why the use of internet banking is not widespread in Italy: 48.3% of the population compared to 59.6% of the average EU. Among the over 65s the figure drops to 25.8%, compared to the EU average of 36.1%. That digitalisation is the cause of banking desertification is therefore a false myth”, observes Colombani.
Regional differences and concentrations
The region where internet banking is used the least is Calabria (26.8%), which is also the one with the lowest number of branches per 100 thousand inhabitants (18). The most “digital” region is Trentino Alto Adige, which is also the one with the highest number of branches (65). More generally, the banking system appears increasingly concentrated. The share of the top five Italian groups in total assets grew by 24.9 points from 1999 to 2022, now controlling over 50% of the domestic market, compared to 46.4% in France and 35% in Germany. For Colombani, however, “reputational and economic incentives are needed for the territoriality of banks which is fundamental for managing the digital transition, a crucial objective for the country which must however be pursued without putting social inclusion at risk”.