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Italy’s Competition Authority Concludes Probe into Intesa Sanpaolo and Isybank

 |  June 12, 2024

Italy’s competition watchdog, the Antitrust Authority (AGCM), announced on Wednesday the conclusion of its investigation into Intesa Sanpaolo (ISP.MI) and its digital banking unit, Isybank. The probe, initiated last November, examined the transfer of thousands of Intesa Sanpaolo customers to the bank’s mobile-only service, Isybank, amid concerns of unfair commercial practices.

The AGCM opened the investigation following complaints from approximately 5,000 customers in Italy who reported not receiving adequate notification about Intesa Sanpaolo’s  migration to Isybank in time to opt out. These customers, Italy’s largest bank’s clients, expressed concerns about the abrupt transition to the cloud-based, low-cost mobile bank.

Isybank represents a significant element of Intesa Sanpaolo CEO Carlo Messina’s strategy to enhance the bank’s competitiveness against burgeoning FinTech companies. By focusing on a digital-first approach, Isybank aims to offer streamlined, cost-effective services to its users.

“We are glad that the commitment of Intesa Sanpaolo Group and our digital bank Isybank has been recognized,” an Intesa spokesperson said in a statement following the AGCM’s decision. The spokesperson also reaffirmed the bank’s dedication to integrating technology and innovation into its business strategy, highlighting the successful alignment of their practices with regulatory standards.

With the investigation closed, Intesa Sanpaolo can continue to focus on expanding its digital offerings through Isybank, solidifying its position in the increasingly competitive financial services market.

Source: Reuters