illimity: Pioneering innovation in banking for a better future

By Filipe Teixeira, CIO of illimity

In the ever-evolving landscape of banking, where the challenges of technological disruption, the advent of AI, and cyber risks loom large, illimity emerges as a beacon of innovation and resilience. Filipe Teixeira, the Chief Information Officer of illimity Bank discusses the critical need for innovation in the banking sector and how illimity takes centre stage, pioneering its transformative journey to become a fully-fledged innovative bank, embracing Open Banking and new technologies to create a brighter prospect for Italian SMEs.

Today, innovation in the banking sector is more crucial than ever. In the face of a rapidly changing financial environment fraught with challenges such as technological disruption, the introduction of AI, and escalating cyber risks in data storage, the banking system is confronted with unprecedented hurdles. These challenges necessitate innovative solutions to not only adapt but thrive in an increasingly complex environment. As the financial landscape continues to evolve, illimity recognises the urgency to embark on a transformative journey to position itself as an innovative bank committed to embracing cutting-edge technologies and to driving the banking sector towards modernisation. The role of forward-thinking industries leaders like illimity becomes crucial in steering the banking sector towards a future in which innovation is not just a strategy but a commitment to co-entrepreneurship and collaboration.

Being “illimiters” signifies more than just being employees; it means being part of a community of co-entrepreneurs united in the desire to embrace novelty and surpass the status quo collaboratively. illimity is not just a bank; it is a catalyst for positive change and a driving force for innovation in the financial sector.

The bank’s journey began in 2018 with the launch of Italy’s largest SPAC, setting the stage for the birth of illimity Bank. Since then, illimity has consistently demonstrated its commitment to innovation by embracing a digitally native business model that encompasses services to businesses and families, distressed credit management, and direct banking. At the heart of illimity’s strategy is the core belief in the symbiosis of technology and human expertise. illimity has established a 100% digital structure that leverages cutting-edge technologies such as big data, Artificial Intelligence (AI), and machine learning. This groundbreaking technological architecture, a first in Italy’s banking sector, reflects the bank’s commitment to providing a seamless and innovative experience to our customers.

Open Banking, which relies on a strong Application Programming Interface (API) infrastructure, is a key factor for the financial industry. This is because the careful and organised approach to creating and handling API infrastructure ensures smooth integration with external systems and partners. By choosing a suitable API management platform, banks can enable effective design, development, and management. The selection of the API process involves setting business goals, outlining API architecture, with details for API types, data formats, and security protocols, and includes the following stages:

1. Business Objectives: Meticulous identification of business objectives is the initial step, delineating the scope and requisite resources for the development and management of the API infrastructure.
2. API Architecture: The API architecture is meticulously defined, involving crucial decisions on API types, data formats (JSON, XML), and essential security protocols, ensuring a robust and well-structured foundation.
3. API Management Platform: A careful selection process leads to the adoption of an optimal API management platform, facilitating effective design, development, and management of APIs to ensure seamless integration.
4. Developer Portal: A dedicated developer portal is established, equipped with comprehensive documentation and essential tools, enhancing developers’ ability to utilise the APIs seamlessly.
5. Testing and Governance: Implementation of a rigorous testing and monitoring strategy ensures the APIs’ expected functionality, with prompt issue identification and resolution. A governance framework is implemented to align API usage with business objectives and ensure compliance with regulations.

Thanks to cutting-edge technologies including REST, SOAP, JSON, XML, and stringent security protocols, illimity’s API infrastructure is able to provide a reliable and secure platform. The bank shows its commitment to customer service by constantly improving the API functionality, which reflects its high standards in the banking experience. By emphasising collaborative innovation and a clear governance framework, illimity can keep up with possible risks and preserve the trust that customers have in its Open Banking system.

Open Banking is a powerful tool for banks to improve and provide customers with new, attractive products; but it also brings forth many opportunities for SMEs, which illimity sees as a driver of innovation. As illimity’s strategy is based on supporting Italian SMEs through technological innovation, Open Banking aligns with this vision by ensuring significant benefits for the bank, such as improved access to finance for SMEs, better cash flow management, increased industry competition, lower financial service costs and a faster and more tailored customer experience.

Collectively, these benefits position Open Banking as a transformative force, offering SMEs a comprehensive suite of advantages for financial accessibility, management, competitiveness, cost efficiency, and customer satisfaction.

Also, Artificial Intelligence has become crucial in navigating the evolving landscape of modern banking and is poised to be a pivotal force in shaping the future landscape of Open Banking. Leveraging on the AI’s transformative power, illimity is investing heavily in coding, data intelligence, and real-time user/customer experience adaptation. By building a proprietary platform that uses the latest language models, illimity aims to stay at the forefront of technological advancements and provide customers with an unparalleled experience. This transformative power extends also reaches SMEs, where AI customises financial products by analysing company data to find areas for cost saving and cash flow improvement. Also, the use of AI in creating accurate credit scoring models is especially important for SMEs’ access to finance, making the process more efficient.

In conclusion, illimity’s overall approach to innovation in the banking sector is not merely a strategy; it is a commitment to co-entrepreneurship, collaborative innovation, and embracing the future with courage. As illimity continues to lead change in the industry, it invites customers and partners to join this exciting journey toward a more innovative, secure, and customer-focused banking experience.