Temenos: Banks Rush to Adopt Gen AI Despite Key Barriers

Isabelle Guis, Chief Marketing Officer at Temenos, shares key insights from a new study surveying 420 business and technology leaders in financial services.

In this conversation with Fintech Magazine, she provides a pulse on the global banking landscape - what leaders are betting on, how they're navigating rapid change, and why Temenos is uniquely positioned to lead banking forward.

Where are banks prioritising their technology investments right now?

We surveyed over 400 banking leaders worldwide with 30% of them in IT roles and the top priority, hands down, is customer experience. That's followed closely by launching new products and boosting operational efficiency.

What really stood out in the data is that even with all the economic and geopolitical uncertainty, banks aren't pulling back on spending. In fact, they're doubling down, especially technology that protects customers (84%), improves internal operations (81%), and connects systems more seamlessly (75%).

Data analytics is another big focus. Banks aren't just using it to look back and report. They're using it to predict, take action, and of course, to tap into the potential of AI.

The message is clear: while banks continue to invest in modernisation, they're doing so with a close eye on evolving market dynamics. FIs 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.

What does the Temenos survey reveal about how banks are thinking about GenAI?

Most banks are still in the early stages, but investment is picking up fast.

According to the survey, only 11% of banks have implemented GenAI so far, but another 43% are already in the process. So, the AI train is definitely moving, but it's not too late for banks to get on board. In fact, more than half of them haven't started yet.

Why are banks turning to Gen AI? To improve efficiency, customer experience, and business growth. These are three of the top goals we saw in the research and echoed by customers speaking at the recent Temenos Community Forum.

For 90%, banks aren't looking to replace people; they want Gen-AI to augment their teams.

What is holding banks back?

There's a sense of caution. Banks have real concerns about data privacy, regulatory challenges, and how to implement AI effectively. Around 86% are worried about data protection, and more than half point to legal risks and model accuracy as key issues.

The concerns are significant. Customer data held by banks is sensitive, and the consequences for inaccurate AI results are much higher than in many other industries. This shows the clear need for responsible AI within banking. The AI must be explainable, and banks need to balance a human touch in the process, to ensure that interactions remain differentiated and build trust with customers.

What needs to happen for banks to adopt GenAI more confidently and at scale?

Two big things would really help: more investment in training and clearer regulatory guidance on how to use GenAI responsibly. Right now, GenAI is still in the early stages. There's no standard implementation framework or set of industry best practices, which makes it harder for banks to move forward with confidence.

Adoption doesn't happen without structure. Only 42% of banks in our study have a dedicated group for AI governance and implementation. Where these groups do exist, they focus mostly on risk management, project execution, and creating internal guidelines.

What we've seen is that banks that adopt GenAI quickly (sometimes in less than 6 to 12 months) tend to have strong governance models in place. That structure gives them the confidence to move fast while still managing risk.

How is Temenos shaping the future of AI-powered banking?

At Temenos, AI isn't an add-on; it's embedded in how we build and how we move forward. We're integrating Generative AI and Agentic AI, natively into real banking workflows to drive meaningful impact.

Take our Temenos Product Manager Copilot, for example. It uses generative AI to help banks design, launch, and optimise financial products faster and more efficiently. Our FCM AI Agent is another example, enhancing sanctions screening by reducing false positives with human-like precision.

But technology alone isn't enough. To navigate something as complex and fast-moving as GenAI, banks need to share best practices, balance innovation with risk, and partner with companies that help them lead, not just keep up. That's the value of Temenos and the unique strength of our community.

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