Global: Italian Regulatory Authority Restrains Intesa Sanpaolo from Unilateral Customer Migration to App-Only Unit

Intesa Sanpaolo faces a directive from Italy’s competition authority, Autorità Garante Della Concorrenza e del Mercato (AGCM), to cease the migration of 2.4 million customers to its newly introduced app-only platform, Isybank, unless explicit consent is obtained from the users.

The bank initiated the cloud-based, app-only Isybank as part of a significant digital transformation initiative earlier this year. In October, approximately 300,000 customers were transitioned to the new unit, accompanied by messages offering the option to opt out.

AGCM reported receiving 5000 complaints related to the migration. The authority highlighted concerns about the communication approach, stating that messages were placed in the archive section of the Intesa Sanpaolo App without push notifications or pop-ups. Customers expressed discontent over the timing of the messages during the August holidays and the altered economic conditions associated with the new accounts.

Moreover, users voiced dissatisfaction with the loss of certain services post-migration, such as the ability to create virtual cards for online purchases. In response to these concerns, AGCM has instructed Intesa Sanpaolo not to proceed with migrating the remaining 2.4 million customers to Isybank without obtaining their explicit consent, safeguarding their right to maintain their current account under the existing conditions.