Temenos reports branch-based banking to be dead within five years

By Joy Dumasia

A report published by Temenos, the banking software company, finds that 65% of global banking executives believe branch-based banking will be “dead” within five years. The Economist Intelligence Unit wrote the report (EIU) based on a recent 305 senior global banking executives survey.

The report highlights how 65% of global banking executives view new technologies such as cloud, AI, and APIs as the trend that will significantly impact the sector over the next four years, ahead of regulation and changing customer demands. 

The report finds that 81% of bankers believe banks will differentiate customer experience rather than products. Established banks are turning to strategic partnerships and investments in technology to become trusted banking partners and the purveyors of consumer-friendly banking experiences.

The pandemic has been a catalyst for collaboration and experimentation. The report states that nearly half (47%) of bank executives expect their businesses to evolve into ecosystems in the next two years. Banks offer third-party products and services, together with their own, to customers and other financial organizations.

Kanika Hope, Chief Strategy Officer, Temenos, said: “Open Banking and increased competition from big tech and new entrants are causing banks to rethink their business models. Many now aspire to develop digital ecosystems that bring more human, differentiated experiences to their customers using the power of the cloud, SaaS and AI. This report shows that bankers now understand that technology will be an enabler for these new business models and is critical to their competitive differentiation. Temenos extends its leadership in AI and cloud, serving more than 3,000 banks worldwide, including incumbents and more than 70 challengers. We recently brought to market The Temenos Banking Cloud to help banks digitally transform and take control of their business models and innovation cycles.” 

Recently, IBS Intelligence reported that Temenos announced it had been recognized as the market’s leading software provider with wins in nine categories, up from six categories last year, by IBS Intelligence’s Sales League Table 2021 (SLT). IBS Intelligence’s SLT has also ranked the company as a regional leader in the Americas, APAC, Europe, and the Middle East and Africa.