The central bank has stated that major Italian banks’ technology expenditures trail behind those of their European counterparts, and it advised lenders to increase their spending to encourage innovation in the financial services they provide.

Italian banks have quadrupled their investments in modern technology since 2017. Yet, these sums are still rather small.

According to Reuters, with the goal of investing €5bn ($5.4bn) in technology between 2022 and 2025, Intesa Sanpaolo, a financial institution in Italy, plans to migrate to a cloud-based core banking IT system that it has effectively tested at a new digital bank.

The second-largest bank in Italy, UniCredit, outsourced its IT infrastructure ten years ago, plans to spend €2.8bn on technology in 2022–2024.

The biggest bank in Spain, Banco Santander, announced plans in 2019 that it will invest over €20bn on digital and technological projects.

Nonetheless, the Bank of Italy has increased its surveillance of IT outsourcing contracts.

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In line with the Bank of Italy, technology plays a significant role in driving cost reductions and lowering customer service charges, with online accounts typically costing 60% less than traditional accounts.

To enhance their reputation and strengthen their clientele, banks must also leverage technology to provide higher-quality services and products.

Furthermore, Italy intended to establish an investment fund with a €1bn ($1.09bn) initial investment to support artificial intelligence (AI) initiatives during mid-march.

It is the year that Italy hopes to utilise its presidency of the Group of Seven major democracies to highlight the effects of AI on inequality and employment while setting guidelines for future technological advancements.

Rome would establish a body to oversee and assist in the execution of the national AI policy as part of the legislation that is scheduled to be introduced.