2024-05-31 08:55:56
Know-how funding by Italy’s large banks is decrease than their European counterparts, the central financial institution mentioned on Friday, urging lenders to extend spending to assist innovation of their monetary providers.
Italian banks have quadrupled their investments in progressive applied sciences since 2017, however they’re nonetheless restricted, Financial institution of Italy CEO Fabio Panetta mentioned within the textual content of a speech given in the course of the presentation of the annual report back to the central financial institution.
“They should develop: it could be a giant mistake to maintain falling behind on this space,” Panetta mentioned.
Banks with a stronger digital presence are higher in a position to diversify their revenues and achieve market share in lending, he added.
Italy’s greatest financial institution, Intesa Sanpaolo, plans to spend 5 billion euros ($5.4 billion) on expertise in 2022-25 because it strikes to a cloud-based core banking IT system, which it examined in a brand new digital financial institution.
UniCredit, Italy’s second-largest financial institution, which outsourced its IT infrastructure round a decade in the past, goals to spend €2.8 billion on expertise in 2022-2024.
In 2019, Spain’s largest financial institution, Banco Santander, mentioned it could make investments round 20 billion euros in digital and expertise.
The Financial institution of Italy has strengthened oversight of data expertise outsourcing contracts, together with via on-site inspections, Panetta mentioned, including that there had been a pointy enhance in reported severe cyber incidents by monetary establishments final yr.
“The monetary sector is a gorgeous goal, given its reliance on digital information and procedures,” he mentioned, noting that geopolitical tensions and actions by nation states enhance cyber danger.
Know-how can be key to reaching financial savings and decreasing service charges for purchasers, Financial institution of Italy famous, with the price of on-line accounts averaging 60% of the price of conventional accounts.
Nonetheless, banks should additionally use expertise to enhance the standard of their providers and supply higher merchandise, to enhance their popularity and relationships with prospects, “that are their Most worthy property”, Panetta mentioned.
($1 = 0.9242 euros) (Reporting by Valentina Za and Giuseppe Fonte Modifying by Gavin Jones)
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