Temenos and Bain Identify Technology Megatrends Redefining the Future of Banking

WHY THIS MATTERS: This joint assessment by a major banking technology provider and a top-tier consulting firm is a critical roadmap for any financial institution CEO planning their next decade of investment. The core message is clear: the era of incremental digital optimization is over, replaced by a strategic imperative for foundational change. The key challenge for banks is no longer merely adopting AI, but establishing a robust foundation for Responsible AI. This means retiring legacy infrastructure and embracing core modernization to create the governed data structures necessary for compliant, scalable automation. Firms that fail to treat their technology stack as a competitive strategic asset risk being left behind, especially as the report spotlights the rapid shift toward hyper-personalisation and the operational efficiencies unlocked by AI agents in commercial banking. The window for strategic inertia is closing.

Temenos, a global leader in banking technology, today unveiled Technology Trends Redefining the Future of Banking, a collaborative industry assessment with Bain & Company, revealing the technology trends set to reshape global banking across retail, SME, corporate, wealth, and payments.

Based on industry perspectives from Temenos and Bain, combined with insights from the Temenos Value Benchmark, the report shows banks making decisive shifts. They are modernising core banking systems in the cloud and improving their data structures to underpin intelligent services. They are moving from building digital experiences to monetising them. They are also navigating the move to digital ecosystems beyond traditional finance.

William Moroney, Chief Revenue Officer, Temenos, commented: “Technology has become central to how banks earn trust, compete, and grow. Those treating technology as a strategic asset are pulling ahead, while others are finding it increasingly difficult to keep pace. This report highlights where value is emerging and outlines the technology decisions shaping the future of banking.”

Joseph Edwin, Partner at Bain & Company, said: “Banks are entering a decisive period where technology choices will determine competitiveness for years to come. Bain’s work across the sector shows that the winners will be those that modernise the core, adopt cloud-native architecture, and build governed data and security foundations that allow AI to scale safely.”

The Temenos report highlights five megatrends shaping banks’ technology priorities for 2026 and beyond:

1. Responsible AI in Banking Starts with a Trusted Core: As global guidance and legislation continue to evolve, some financial institutions are gravitating towards approaches such as the Model Context Protocol (MCP), which allow AI to securely retrieve context and data from core systems and external services without duplicating data or embedding logic into models. This strengthens governance and regulatory alignment.
2. Cloud, SaaS and Data Mesh Underpin the Intelligent Bank: Banks are accelerating the adoption of cloud native architectures and SaaS platforms to scale efficiently and reduce reliance on legacy systems. But while data remains a critical asset, it is often fragmented, hard to access and over a fifth (21%) duplicated. This is driving adoption of data mesh architectures to organise data and unlock real‑time, AI‑driven value.
3. AI Agents Transform Complex Corporate Banking Processes: Corporate and commercial banking is shifting away from manual, bespoke processes as AI agents begin orchestrating workflows such as deal structuring, compliance checks, and documentation. At the same time, treasurers expect real‑time visibility into liquidity and payments, driving modernisation of API‑driven channels and core infrastructure.
4. Stablecoins expand into real-world use cases: Stablecoins are evolving from crypto plumbing into a credible settlement and liquidity rail for targeted banking and payments flows. While not replacing existing systems, they are becoming strategically relevant – particularly for cross‑border, liquidity, and wholesale use cases – creating long‑term opportunity and short‑term complexity for banks.
5. Hyper Personalisation Redefines Retail and SME Banking: AI and behavioural data are driving rapid growth in hyper‑personalisation, enabling banks to deliver more relevant, real‑time offers and deepen customer engagement. With an average of just 2.59 products per customer, this represents a significant opportunity to increase share of wallet.

FF NEWS TAKE: Absolutely, this moves the needle. It validates the widespread industry consensus that the battleground for market share will be won on data governance and cloud-native capability. We see the primary short-term focus shifting from internal digital tools to external, revenue-driving intelligence. Banks must now closely watch how regulators respond to the practical deployment of AI agents in areas like corporate deal structuring, and how the burgeoning utility of stablecoins in wholesale payments impacts traditional correspondent banking models.