Smart Bank, the former Banca del Sud that offered deposit accounts with 8% interest, has been placed into administration – Corriere.it

The Bank of Italy intervenes Smart bank. In the exercise of its supervisory functions, Via Nazionale has arranged for the extraordinary administration of the digital investment bank headquartered in Naples, and the dissolution of its management and control bodies. A similar ruling was adopted against the parent company, Cerdan Group, based in Milan.

Bank of Italy allocations

The “early intervention” measures aim to “ensure appropriate supervision of the group's operations and restore conditions of sound and prudent management,” according to a memorandum from the two companies. To this end, Bankitalia has appointed two commissioners, former Director General of Consob Enrico Ajello and Professor Andrea Guaccero. Under their directions, both Cirdan and Smart Bank will continue their activities, so “customers and depositors can continue to operate with the usual confidence,” the statement concluded. Current accounts up to EUR 100,000 are also protected by the Deposit Protection Fund.

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Born in 2022 from the ashes South BankSmart Bank has come to prominence in recent months for promoting a series of deposit accounts, some of which are very long-term, and with particularly high interest rates. Just a week ago, on the same day as the Bankitalia provision, the institute launched a 5-year capped product, with the yield rising to 8.25% (subject to early repayment). A few months earlier, he had proposed a 20-year deposit account, with a total annual interest of 7%, to be paid in a lump sum when the contract expired.

Smart bank numbers

According to data announced in October by CEO Antonio De Negri, the 77% controlling shareholder of parent company Cerdan, these and other offers have allowed Smart Bank to raise more than 300 million euros from more than 7,000 clients, Italian and non-Italian. Before running Bancitalia, De Negri headed Smart Bank himself and it was headed by Carlo Alberto Carnevale Maffei, a professor at Bocconi University. Also on the board were Benedetta Aries Lucini, former Uber and co-founder of fintech company Oval Money, Roberta Benedetti del Rio, and Bianca Maria Sul De Negri.