Some ideas have been written and deeply discussed about the importance of technology in the specific context of the financial services. According to some authors, technology can be responsible for the promotion of important reforms in the banking structure. Due to the great impact that Information and Communication Technologies have been having on the modernization of the Portuguese banking system, we can assume that competitive advantage will largely depend on the technological innovation. On this basis, the major point of concern in the present study is connected with a review of the literature in order to analyse the role of the technological progress in the Portuguese banking system structure reform. KEYWORDS Technological Progress, Banking System Structure Reform.