Banks doubling down on technology modernisation to drive customer experience, research reveals

By Puja Sharma

Despite economic and geopolitical uncertainty banks are investing in technology with clear focus on customer experience, protection and innovation

At the Temenos Community Forum 2025, the firm revealed findings from a global study showing banks are rapidly prioritising tech investments, especially in AI, data analytics, and cloud core systems, to boost customer experience, innovation, and efficiency. Amid geopolitical and economic uncertainty, 84% of banks plan to increase tech spending for customer protection and 81% for operational efficiency. While only 11% have fully deployed generative AI, 43% are actively implementing it. A majority (60%) see AI as augmenting human roles. Temenos CMO Isabelle Guis emphasised that embracing AI is essential for banks to stay competitive and agile in evolving markets.

At the Temenos Community Forum ’25 in Madrid, Temenos, a global banking technology firm, shared insights from a global study by Hanover Research of 424 business and technology leaders in financial services that underscores a bold shift in banking priorities.

The research shows financial institutions are accelerating investments in technology and placing customer experience, innovation, and operational efficiency at the top of their strategic agendas. Investing in technology to improve customer experience emerged as the top strategic priority for 46% of banks worldwide, followed closely by the launch of new products and services (35%), and the pursuit of greater operational efficiency (34%).

In the face of rapid geopolitical changes, banks need to modernise to be able to predict, understand and adapt rapidly to market changes; capabilities their legacy systems are not equipped to deliver. To meet these demands, (77%) of financial institutions are investing in data analytics and AI-driven insights and 68% in cloud-based core banking systems, all while maintaining a strong focus on protecting both themselves and their customers as a priority.

Amid the turbulence of inflation, tariffs and trade tensions, most banks anticipate they will increase investment in technology to better protect customers (84%) and technology to enhance operational efficiency (81%). In addition, three-quarters of banks plan to increase their investments to improve systems integration (75%) and data analytics (73%).

Most professionals (81%) agree that if banks do not implement artificial intelligence they will fall behind competitors. While only 11% of banks have fully implemented generative AI today, 43% are in the process, indicating more than half are moving forward with real deployment. Notably, 60% of banking professionals view AI as a tool to augment, not replace the human workforce.

In her plenary keynote at TCF, Isabelle Guis, Chief Marketing Officer, Temenos, said: “The message is clear: while banks continue to invest in modernisation, they’re doing so with a close eye on evolving market dynamics. Financial institutions understand that staying competitive means being ready to adapt and there’s a growing recognition that failing to embrace AI soon could leave them behind.”

The study results pertaining to AI and Gen AI were discussed on a recent webinar with Jerry Silva, Program Vice President, IDC, Maya Mikhailov, Founder and Chief Executive Officer, Savvi AI and Isabelle Guis, Chief Marketing Officer at Temenos.