Italy’s software scene has never been more dynamic. From accounting tools to B2B platforms, homegrown SaaS companies are reshaping how businesses operate—digitizing workflows, automating the tedious tasks, and making life easier for internal teams and their users.
But when it comes to financial processes? That’s where things still get messy.
Payments are still fragmented. Accounts sit outside of the tools businesses actually use. Managing cash flow is a balancing act across spreadsheets, banking portals, and accounting platforms that don’t talk to each other. The result? Friction, inefficiencies, and a lot of time-consuming manual work.
Software companies have already helped businesses modernize operations. Now, the next frontier is money itself—how it moves, how it’s managed, and how it can be embedded directly into the platforms businesses are already using. As Alessandro Giovanelli, Swan’s Country Lead in Italy, said;
“A shift is happening. Italian software companies aren’t just facilitating financial processes anymore—they’re owning them.”
By embedding banking services like business accounts, payments, and cards, Italian software companies are closing the gap between operations and finance. And for those who move first, the opportunity is massive.
Why Italy is ready for the shift to embedded banking
Several factors have set the stage for embedded banking to take off in Italy. From regulatory shifts to changing business needs, the market is primed for financial services to move beyond traditional banks and into software platforms.
1. Regulation is pushing businesses toward digital banking
Italy has been steadily digitizing its financial infrastructure, and regulation has been a key driver. One of the biggest changes has been e-invoicing. Since 2019, electronic invoicing (fatturazione elettronica) has been mandatory for business-to-business (B2B) transactions. The goal? Greater transparency and efficiency.
But while invoicing is now fully digital, business payments and cash management remain fragmented. Companies still have to rely on external banking services that don’t integrate smoothly with their financial software. Embedded banking fills this gap by allowing businesses to manage accounts and payments directly within the tools they already use.
2. Italian businesses need better financial tools
Italy’s economy is powered by small and medium-sized businesses (SMBs), which make up over 99% of all Italian companies. Yet, many still struggle with outdated financial processes. Too often, they rely on manual reconciliation, scattered banking apps, and non-integrated payment experiences. They don’t only need to be able to see their finances; they need to be able to act on them.
This is where embedded banking comes in. By offering business accounts, cards, and payments directly inside software platforms—whether it’s accounting, expense management, invoicing software, or beyond—SMBs can finally operate as efficiently and feel as empowered as larger enterprises.
3. Trust in fintech is at an all-time high
Italian businesses and consumers are embracing digital payments like never before. Digital payments in Italy reached €444 billion in 2023, reflecting a 12% year-on-year growth—a clear sign that businesses are ready for more seamless, tech-driven financial solutions. At the same time, open banking regulations have made it easier than ever to connect financial services to software platforms, paving the way for embedded banking to become the new standard.
For software companies, this presents a unique opportunity. Instead of just helping businesses monitor finances, they can now help them move and manage money seamlessly within their platforms. The companies that recognize this shift early will be the ones leading Italy’s next software evolution.
Supporting Italian businesses with Italian banking features
Italy’s businesses, particularly small and medium-sized ones, operate in a tightly-knit ecosystem where trust and familiarity are paramount. And when it comes to managing finances, nothing speaks to local trust like a local bank account.
Italian accounts and IBANs
Many Italian companies still prefer to work with local Italian account numbers. This is not just about convenience—it’s about a sense of security. In Italy, the business world operates with an established rhythm: payments to suppliers, cash flow management, and tax filings all hinge on the familiarity and recognition of local banking details.
With Swan, you can offer Italian accounts with Italian IBANs, ensuring your users can perform transactions just like they would with a local Italian bank. Tailoring your offering to the Italian market helps you build trust with your business customers and reduces the likelihood of them experiencing IBAN discrimination during their daily financial operations.
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Compliance with Italian regulations
In Italy, financial regulations are closely governed by institutions like the Bank of Italy and Agenzia delle Entrate (Revenue Agency). Adhering to local regulations—such as e-invoicing (mandatory for B2B transactions) and anti-money laundering (AML) rules—is essential for ensuring legal compliance and building trust with your Italian business customers.
Offering Italian accounts and IBANs, cards, and payment infrastructure through Swan means you piggyback off our e-money license. What does this mean in reality? Well, there’s no need to hire a compliance team, set up a risk management process, or be audited. We own the regulatory burden, which we’ve tailored specifically for the Italian market. For Italian businesses in particular, the assurance that financial activities are conducted in full compliance with Italian regulations builds confidence and fosters trust, making your business the go-to partner for their core financial needs.
Localizing the user experience for Italy
Localizing the user experience goes beyond language—it’s about understanding regional preferences and designing intuitive interfaces that feel familiar. With Swan, you can offer (pre-built) user onboarding flow and support materials in Italian, ensuring a local Italian experience to boost user satisfaction, trust, and engagement. Tailoring your platform to meet Italy’s specific needs ensures a seamless, culturally relevant experience for your customers.
Why now is the time for Italian SaaS to embed banking features
Embedded banking is already reshaping industries across Europe, and Italy is next. Businesses now expect seamless financial services built into the software they rely on daily. Early adopters in Italy will gain a competitive edge, while those who wait risk falling behind. This is the moment to lead the shift by enhancing their platforms, unlocking new revenue streams, and becoming an indispensable financial hub to their customers.
Embedded banking isn’t just an added feature—it’s the next step in the evolution of Italy’s software industry. With local Italian IBANs now available through Swan, software companies can offer a fully native banking experience, enhancing their platform, unlocking new revenue streams, and becoming an indispensable financial hub to their users.
The market is shifting fast. And this is the new standard for the future of financial services in Italy.
