He is currently the head coach of the Latvian national team and Anadolu Efes of the Turkish Basketbol Süper Ligi (TBSL) and the EuroLeague.

In 1999, he made his debut on the bench of Pall Trieste, where he coached for two years, before returning to Livorno, that had meanwhile been promoted to the Italian top-tier level LBA.

[2] On July 1, 2013, he signed a two-year deal to become the head coach of the Italian European-wide top-tier level EuroLeague club, Emporio Armani Milano.

On November 16, 2022 Banchi signed with SIG Strasbourg and helped the team to raise from the last place to playoffs in French ProA, as well as a playoff spot in Basketball Champions League[12] In September 15, 2023, after Scariolo was fired following controversial statements regarding the new roster and the upcoming season, he became new head coach of Virtus Bologna, and signed a two-year contract.

[14] On 24 September 2023, after having ousted Olimpia Milano in the semifinals, Virtus won its fourth Supercup, and the third in a row, defeating 97–60 Germani Brescia.

[17] On March 25, 2021, Luca Banchi was announced as the next head coach of the Latvia men's national basketball team.

In the country's World Cup debut in 2023, Banchi led the team to a 5th place finish[19] and received the award for the Best Coach of the tournament.