Intesa Sanpaolo has roped in core banking supplier Thought Machine to build the backbone for a new mass market digital bank, part of a $4.8 billion technology spend earmarked in the Italian bank's 2022-2025 business plan.
The new digital bank will cater to the four million Intesa Sanpaolo clients identified as digital-first, with simple banking needs. The initiative will lead to the closure of 1500 branches, with 1800 outlets retained for clients with more complex financial needs.
In a second wave, the new core infrastructure will be extended to the bank's international network for multi-currency and multi-country clients.
The bank say its intends to hire hire around 4,600 people and reskill up to 8,000 staff, of which around 2,600 will be seconded to to the digital branch effort.
Intesa is also setting up an AI Lab in Turin with around 50 Italian and international experts dedicated to the development of new data analysis methodologies and advanced machine learning systems.
Other tech partnerships lined up include a collaboration with BlackRock on the use of its Aladdin platform for high net worth clients and a tie up with Kyriba for transaction banking services.
The streamlining programme will be enhanced by what the bank describes as a new 'digital negotiation factory' to downsize the supplier base and concentrate resources on sustainable procurement policies.