Banks Shift Core Modernization Focus to Growth, Customer Experience and Reliability
For banks, core modernization is increasingly judged by what it delivers: faster launches, lower costs, better customer experiences and dependable service. At Temenos Regional Forum Americas in Orlando, more than 350 customers, partners, prospects and industry leaders discussed how to pursue those gains while keeping essential banking systems running.
Temenos President Brian DuVal described a shift from debating whether to modernize to deciding how to do it without compromising growth, customer experience or trust. Recent business wins offer a view of that demand: a leading US regional bank selected Temenos SaaS for corporate banking modernization, while Canadian online broker Questrade launched its banking business on the platform.
Customer retention raises the stakes
The pressure is visible in customer sentiment. Research Celent conducted for Temenos and released at the forum found that 75% of US consumers were only moderately satisfied or less with their primary financial institution. Celent calls these customers the “switchable middle.” Meanwhile, 62% of US banks said attracting and retaining customers had become harder over the previous 12 months.
That gap reaches beyond the features on a banking app. DuVal said the test is whether institutions can keep pace with how customers want to manage their financial lives. Banks are looking for modernization plans suited to their business models and customer priorities, with room to improve speed and services while protecting access to payments, accounts and funds.
AI enters operating workflows
Bank discussions about AI have moved toward practical applications, including productivity, faster decisions, fraud prevention and more personalized service. DuVal said the technology is shifting from experimentation into everyday workflows.
Customer expectations are rising faster than some banks’ spending priorities. In Celent’s global research, only 4% of banks named customer experience personalization as their top investment priority. AI may speed the deployment of personalization tools, but it cannot replace the capital and resources needed to put them into practice.
Cloud, data and AI are also appearing more often in board-level modernization conversations, drawing technology providers such as AWS and Microsoft into the discussion. Banks want to understand how the wider technology environment can help them scale securely, move faster and improve resilience.
Reliability remains central to trust
Customers still expect payments to clear, accounts to stay secure and funds to remain accessible. DuVal described those dependable services as the foundation of trust. Celent’s global survey found that 53% of consumers were dissatisfied with payment services and 39% with security and fraud protection. The research also linked trust to customers’ decisions to stay with a provider or switch.
Reliable service is a baseline, while understanding customer needs can help deepen the relationship. The findings point to a broader standard for banks: combine resilience and security with relevant experiences.
Modernization measured in business results
Temenos’ Innovation Hub in downtown Orlando brings product and technology teams focused on the US market together with visiting institutions for hands-on work. Banks that visited this year came with specific business questions: how to launch faster, lower costs, improve a customer journey or strengthen resilience.
DuVal characterized modernization as a business outcomes discussion rather than a strategy exercise. Regional banks, credit unions, challengers and larger institutions may take different routes, but all face the same tension between maintaining stability and introducing change.
The next phase will put greater weight on measurable value, including faster time to market, lower costs and stronger customer experiences. Banks will need to show that they can deliver those results while maintaining reliable operations, with AI increasingly built into day-to-day work. As DuVal put it, success will depend on the experiences institutions create and the outcomes they deliver.
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