Milano Hub - Results of 2021 Call for Proposals
Speech by Alessandra Perrazzelli
Deputy Governor of the Bank of Italy
28 February 2022
Welcome everyone. I am very pleased to be here today to present the results of
Milano Hub's inaugural 2021 Call for Proposals on artificial intelligence and to announce
the names of the 10 projects that - after a rigorous review process - will participate in the
Bank of Italy's innovation centre.
How did we get here?
We received 40 projects submitted by 62 different operators: financial intermediaries,
start-ups, service providers, universities, industry associations, research centres, consulting
firms and law firms (slide 1).
The call was answered by young start-ups (less than two years old) and by Italian
and foreign banking, finance, insurance and commercial groups, including some listed
companies.
Universities also feature prominently: 22 per cent of the projects submitted hail at
least in part from the world of academia.
The response to the call for proposals has been very positive. It has served as a
further source of stimulation for the Bank of Italy in helping the financial system to face
the challenges posed by the technological innovation process.
The results of the call only go to show that innovation knows no boundaries,
drawing together participants from across the financial ecosystem, regardless of size.
This is also confirmed by the discussions we have had with the market through our other
two innovation incubators: the FinTech Channel and the regulatory sandbox.
In 11 cases, the applications were submitted jointly by two or more applicants,
often from different economic sectors (slide 2). These are projects that require the input
of a variety of professionals, or that involve operators with traditional business models
turning to Fintech companies or specialized service providers for their know-how to
improve processes and to adapt products.
Breaking it down geographically (slide 3), 66 per cent of the projects come from
the North of Italy, 18 per cent from the Centre, and 11 per cent from the South and the
Islands; the remaining 5 per cent were submitted by foreign applicants. Our interaction
with these operators has shown that, while the distribution is uneven, nonetheless
throughout the country there are plenty of even small entities with a significant wealth of
knowledge and high-quality human capital that we should be tapping into increasingly.
The projects submitted (slide 4) stand out for their high quality and variety. This
fully reflects the dynamism and complexity of the artificial intelligence sector, which is
undergoing a period of strong expansion throughout the world.
The proposals received focus mainly on innovative payment methods, anti-money
laundering regulations, asset management and tokenization of financial instruments.
In addition, there are projects involving RegTech solutions and risk measurement and
management tools, specifically for environmental, social, and governance (ESG) risk.
What awaits us?
The Bank of Italy plans to form a group of experts to support each of the projects
selected.
This represents a significant commitment on the Bank's part, offering the assistance
of expert staff, usually for a period of six months, to help develop and design the solutions
proposed.
Starting in March, the teams will begin their work of consulting with the applicants.
To ensure transparency, the list of the 10 winning projects and a brief description of each
project will be published on the Bank's website.
An ancient Chinese proverb states 'A journey of a thousand miles begins with a
single step'. We have taken many steps these last few months. Today's event marks
another stage in a journey that began some time ago, one that I won't pretend has
been smooth sailing all the way but which I nonetheless believe opens up exciting new
horizons.
So I have faith; we, along with our market operator partners, are searching for
solutions that could have positive externalities, not just for the applicants, but for the
entire system. The results of the 2021 Call for Proposals show that the path we have chosen
is the right one. The collaboration between Milano Hub and the other two innovation
incubators, the Fintech Channel and the regulatory sandbox, are sure to strengthen this
process.
Finally, allow me to reiterate what the Governor stated at the start of today's event:
I would like to thank all the members of the Project Evaluation Panel, the consultants and
all the colleagues who, in various ways, have contributed to the success of this event.
I hope that the opening of the Milano Hub will prove to be another example of our
country's ability to 'pull together'.
MILANO HUB
Results of the 2021 Call for Proposals
Alessandra Perrazzelli
28 February 2022
The Hub's three areas of operation
40 projects submitted by a total of 62 entities (applicants + participants)
25
Fintech
hub
5
Applications received
Innovation
5
Places available
hub
3
9 universities
Research &
10
Development
1 association
hub
2
Number of projects
SLIDE 1
Joint initiatives
11 joint applications
Joint initiatives 11
R&D hub
5 6 Fintech hub
5 out of 10 applications in this area
6 out of 25 applications in this area
were for joint initiatives with
were for joint initiatives with
universities, Fintech companies, law
universities, Fintech companies, law
firms, etc.
firms, etc.
SLIDE 2
Geographical distribution
Considering the registered office of the
62 entities (applicants + participants)
22
3
2
4
3
North 66%
Centre 18%
South and Islands 11%
1 application
Foreign 5%
11
2
2
SLIDE 3
Main reference area of the projects
Breakdown of the 40 projects
Crowdfunding
2.5%
Payments 15.0%
Investments and
Deposits and Lending

Wealth Management
22 6 Payments
5.0%
5 Security

 3 RegTech
RegTech 7.5%
2 Investment and Wealth Management

 1 Crowdfunding
Decentralized Finance
1 Decentralized Finance

2.5%
Security 12.5%
Deposits and Lending
55.0%
Percentage breakdown
SLIDE 4
Designed by the Printing and Publishing Division of the Bank of Italy