The study released by Cetif Research and Reply marks a significant advancement in understanding the landscape of digital transformation within Italy’s financial sector. This extensive research project aimed to assess the digital maturity, the evolution of governance models, and the technological frameworks employed by financial institutions in Italy.
Findings from the study reveal that over 65% of financial institutions now view IT as a critical component of their overall industrial strategy, surpassing its previous role as merely a support function. This shift signifies a maturation in digital transformation, where enhanced collaboration between IT and business units leads to data-driven approaches that significantly influence customer journeys and operational processes.
Paolo Gatelli, a Senior Research Manager at Cetif, projected that within the next five to ten years, the banking infrastructure will undergo profound changes, emphasizing the adoption of hybrid models with increased cloud utilization. He anticipates that the data platform will become central to both customer interactions and internal operations. Architectures are expected to evolve toward modular systems based on APIs and microservices, with widespread automation enhancing efficiency across various levels. Gatelli highlighted the growing significance of AI, which is anticipated to become integrated into decision-making processes and daily operations.
Supporting this outlook, Paolo Zandano, Group Head of Strategic Customers at Reply, emphasized the need for organizations to translate technological vision into tangible value. He noted that future IT strategies must improve efficiency, innovate products and services, and ensure robust risk management amid cyber threats and evolving regulations. Zandano outlined that a coherent approach that integrates cloud, data, and security is essential, with a focus on agile execution rather than merely planning.
The study further delved into operational dimensions, revealing that 72% of participants perceive Operations as the primary driver of innovation. Institutions are increasingly investing in processes that have direct implications on customer relations, recognizing Operations as the sector with the highest digital maturity. This includes significant enhancements in the automation and digitization of core processes, forming a foundation for ongoing transformation efforts.
Another critical insight from the research is the polarization in IT demand across different functions. In key operational areas like Operations, Marketing, Sales, and Customer Service, more than 75% of IT requests are geared towards developing new functionalities aimed at enhancing customer experiences. Conversely, governance and support processes display a more balanced demand, indicating a phase of consolidation rather than radical transformation.
Despite these positive trends, the report also addresses the challenges financial institutions face. Nearly 80% cite regulatory complexities and lengthy implementation times as major barriers to digital transformation, alongside high integration costs and data management issues. In addition, while the adoption of Generative AI remains limited, traditional AI technologies are being utilized notably in marketing and customer-facing roles, showing a 50% usage rate for tasks like personalization and predictive analytics.
The architectural landscape of the industry shows a lingering preference for on-premise systems, accounting for about 55% of applications. However, an increasing adoption of hybrid models—currently at 45%—signals a shift towards more flexible infrastructures, particularly in front-end services.
Although migration to cloud solutions is impeded by factors like technical debt and security concerns, there has been a decrease in the impact of these issues as institutions enhance their infrastructures and develop relevant skills.
The research conducted by Cetif Research and Reply involved major national financial institutions and included discussions with industry experts, providing a comprehensive insight into the current state and future prospects of digital transformation in Italy’s financial sector.