ICT scenario and market trends for the banking sector 2024

The ABI Lab 2024 Report identifies as key priorities for the Italian banking sector: the agile transformation of ICT infrastructures, cyber security and resilience, data governance and valorization, as well as the development of new organizational and technological skills. These factors—enablers of “Next Generation Banking”—are imperative to guarantee competitiveness, sustainability, and a leadership position in the constantly evolving banking landscape. The outlined strategy revolves around the eight pillars of the ABI Lab Manifesto, including customer proximity, operational speed, effective data management, exploration of innovation, openness to fintech partnerships, people-centricity, security, and sustainability.

Key Results

• Growth in ICT Investments: 62% of banks report an ICT budget increase of over 5% compared to 2023, peaking at 82% among the largest institutions.
• Innovation Priorities: 71% of banks place cyber risk management at the top; core banking modernization (57%), cloud computing (52%), and data governance initiatives (52%) also stand out.
• AI and Sustainability: 62% identify artificial intelligence as the main research and experimentation area; 43% are investing in ICT systems aimed at ESG objectives.
• Open Innovation: 55% of major banks include fintech partnerships and dedicated innovation structures among their top research priorities.

The in-depth analysis underlines that the modernization of architectures (containers, microservices, cloud-native) and process automation (RPA, intelligent BPM) are essential for increasing scalability and time-to-market. At the same time, strengthening cyber-resilience is a central response to the escalation of cyber threats—including those powered by generative AI—and anticipates upcoming regulations like DORA and the new PSD3, requiring the adoption of cross-functional skills, advanced testing, and cloud service exit strategies.

The report also highlights the importance of evolving the organizational and cultural model: developing both vertical (AI, Cloud, Cybersecurity) and transversal (agility, problem-solving, soft skills) competencies, creating cross-functional teams, and integrating training paths into change management are all key to leading innovation. The adoption of a Data Driven culture signals the ability to integrate advanced analytics, AI tools and governance models to enhance both the personalization of services and operational efficiency.

On the sustainability front, over 70% of banks have already initiated projects to improve the environmental profile of their technological infrastructures, and 58% plan new investments in renewable energy; 88% see artificial intelligence as the main solution supporting the ESG transition. This investment is reflected in the growing role of ESG indicators in evaluation, reporting, and technology procurement policies.

In conclusion, the 2024 Report establishes the transformative role of ICT and the innovation culture as a critical success factor for Italian banking. For managers, the need emerges to accelerate the modernization of infrastructures and skills, strengthen collaboration with fintechs and a data-centric approach, and ensure compliance and resilience in an increasingly demanding regulatory and operational landscape. These drivers form the foundation for building a truly “next generation” bank, capable of anticipating market demands, guaranteeing security, and acting as a responsible player in the sustainable transition.

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