Organisational change in the retail banking industry is particularly relevant in a country characterised by the prevalence of small banks and where the number of branches has increased over time, notwithstanding the potential for network rationalisation offered by information and communication technology. This paper examines the impact of technological change on the organisational structure of Italian banks, in terms of the evolution of competencies and the development of new systems for the provision of financial services. We consider organisational changes both at the level of production and at the level of distribution of financial services. The final objective is to understand the main challenges and opportunities stemming from the adoption of ICT by Italian banks, in particular those related to the development of new organisational structures and the introduction of innovative distribution channels.