ICT scenario and market trends for the banking sector 2021

The "ABI Lab Scenario 2021" report highlights ICT priorities for the Italian banking sector in response to the acceleration driven by the pandemic. Banks have increased their focus on digital, allocating growing budgets especially to Digital Onboarding, Mobile Banking, Data Governance, process automation, and cyber risk management. Digital transformation required a rethinking of operational models and a heightened attention to customer experience, with security and business continuity as fundamental pillars. Priorities also extend to cloud computing, artificial intelligence, Fintech innovation, and the sustainable transition.

Key Results

• ICT Budget Growth: 40% of banks increased their ICT budget by over 5% compared to 2020; among larger banks, this figure rises to 50%.
• Focus on Digital Areas: 73% of banks consider Digital Onboarding a top priority; 68% invest in mobile, while 64% focus on Data Governance.
• Automation and AI: 55% of banks prioritize process automation, while 55% of research initiatives are focused on AI advancements.
• Cybersecurity: Cyber risk management is a leading priority for both investments and research, especially among larger institutions.
• Open Banking and APIs: Over 41% of banks are exploring open banking platforms and the use of APIs for new digital services.

Italian banks are adopting ICT models that are increasingly modular, scalable, and cloud-oriented. The growing share of budget allocated to innovation (the "Change" component rose from 36% in 2015 to 40% in 2020) demonstrates a structural commitment to renewing core banking, adopting micro-services, DevOps, Agile methods, and strengthening IT-business synergy. Cost allocations focus on application modernization (51.8% of TCO) and specialized outsourcing, while demand for new IT and digital skills is rising.

Strategic partnerships with Fintechs are well established: 64% of banks favor partnerships with startups, with significant investments in Payment Services, Lending, investment platforms, and Account Aggregation. Nonetheless, challenges remain in integrating compliance and processes, and in overcoming internal resistance to change, especially among smaller banks. The sector also actively experiments with open banking, blockchain, and DLT projects (e.g., Spunta Banca DLT).

Focus on sustainability is increasing: 68% of banks and outsourcers have launched ESG initiatives in governance. Most have already implemented environmental criteria in procurement, while 36% are integrating technology and sustainability (“innovability”), including projects for energy efficiency and sustainable mobility. Reporting on environmental performance is increasingly transparent and integrated into communication strategies.

In conclusion, the report portrays a sector that is mature in its emergency response and oriented toward structural digital transformation. Further investments in training, intelligent automation, and cybersecurity are recommended, alongside a strengthening of the capacity to work within ecosystems—collaborating with fintechs, technology partners, and sustainability initiatives—to ensure competitiveness and resilience in the near future.

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