Why Banks Are Moving From ‘Should We Modernise?’ To ‘How?’: Temenos’ Sai Rangachari

Why It Matters

This pragmatic approach gives banks a viable path to modernize legacy systems, reducing risk and cost while keeping pace with digital competition.

Key Takeaways

• Temenos shifted forum focus to product demos, not just vision
• Banks now ask “how” to modernise, seeking composable core solutions
• AI embedded in Temenos products accelerates development and reduces manual tasks
• Trust hinges on explainable, auditable, governed AI for regulated banks
• Modular upgrades let banks replace functions like deposits before full core overhaul

Pulse Analysis

Banks are under mounting pressure to replace aging legacy platforms, yet many still wrestle with complex, undocumented integrations. Temenos’ 2026 Community Forum marked a turning point by moving the conversation from "should we modernise?" to "how"—showcasing composable core‑banking components that can be swapped incrementally. This modular strategy lets institutions target high‑impact areas such as deposits and lending first, mitigating risk and spreading costs over time, while preserving continuity for customers across web, mobile and emerging conversational channels.

Artificial intelligence is another pillar of Temenos’ roadmap. The firm embeds AI not only in client‑facing products—like conversational banking assistants—but also within its own development pipeline, cutting time‑to‑market and enhancing software quality. Practical use cases highlighted include AI‑driven reconciliation, sanctions screening and automated product creation, which free staff from repetitive screen‑hopping. Crucially, Temenos frames AI as explainable, auditable and governed, meeting the stringent compliance demands of regulated banks and building the trust needed for broader adoption.

The implications extend across the banking spectrum. Tier‑one institutions can leverage deep pockets to pilot advanced AI and composable architectures, while smaller banks benefit from Temenos’ plug‑and‑play modules that deliver comparable capabilities without massive upfront investment. By offering a step‑wise modernization path, Temenos positions itself as a catalyst for industry‑wide digital transformation, ensuring that even the long tail of banks can stay competitive in an era where speed, agility and regulatory assurance are paramount.