Banks Focus on Modernization Without Disrupting Services
Banks are shifting their focus from whether to modernize their core technology to how to do it without disrupting essential customer services. This change was clear at the Temenos Regional Forum Americas in Orlando, where over 350 industry leaders met to discuss banking’s future.
“Institutions are no longer debating whether to modernize,” said Brian DuVal, President of Temenos. “They’re focused on how to do it in a way that accelerates growth, improves customer experiences, and preserves trust.”
Banks Prioritize Speed and Innovation with Minimal Risk
Banks now want modernization plans tailored to their unique priorities, customers, and business models. They aim for speed and innovation while minimizing risk and disruption. Critical systems, such as those handling payments, accounts, and access to funds, must stay operational during the transition.
Research by Celent for Temenos shows that 75% of U.S. consumers are only moderately satisfied or less with their primary financial institution. This group, called the “switchable middle,” highlights the growing challenge banks face in retaining customers. 62% of U.S. banks report that winning and keeping customers has become harder over the past year.
The gap between customer expectations and bank capabilities goes beyond digital features. “It is about whether banks can keep pace with how customers want to manage their financial lives,” DuVal said.
AI Moves from Experimentation to Everyday Workflows
Discussions about AI in banking have shifted from theoretical possibilities to specific applications. Banks now focus on using AI to boost productivity, speed up decisions, prevent fraud, and personalize customer experiences. “The technology is moving from experimentation into everyday workflows,” DuVal noted.
Customers increasingly expect proactive and personalized banking, but bank budgets have not kept up. Only 4% of banks globally prioritize personalization as their top investment, according to Celent’s research. While AI alone cannot solve this issue, it can speed up the deployment of modern personalization tools, helping banks meet customer expectations.
Generative AI has also gained prominence, with cloud, data, and AI now central to board-level modernization discussions. Partners like AWS and Microsoft are increasingly involved as banks seek to understand how the full technology ecosystem can help them move faster, scale securely, and strengthen resilience.
Trust and Reliability Remain Fundamental
Trust in banking starts with basic reliability. “Payment transactions go through. Accounts are secure. Customers can access their money whenever they need it. The institution performs exactly as expected,” DuVal said.
Celent’s global survey found that 53% of consumers are dissatisfied with their payment services, and 39% are dissatisfied with security and fraud protection. Trust is key to customer retention, with reliability, security, and relevance forming its foundation.
Banks visiting the Temenos Innovation Hub in Orlando have shifted their focus from broad transformation discussions to specific, outcome-driven questions. They seek ways to launch faster, reduce costs, improve customer journeys, and increase resilience.
“Modernization is no longer a strategy discussion,” DuVal said. “It’s a business outcomes discussion.”
Temenos Gains Momentum with Key Partnerships and Innovation Hub
Temenos has secured significant deals, including a leading US regional bank adopting its SaaS platform for corporate banking modernization and Questrade, a top Canadian online broker, launching its banking services on Temenos. The company’s Innovation Hub in Orlando plays a central role, hosting product and technology teams focused on the US market. This hub provides visiting institutions with hands-on collaboration opportunities.
