As technologies like cloud computing and artificial intelligence (AI) become more accessible, banks in 2025 will face a new challenge. Previously, the question was ‘Should we implement these technologies?’. Now, it’s ‘How do we implement them effectively?’.
One company that is well-placed in this banking evolution is Temenos, the core banking solutions provider. In November 2024, Temenos announced a new partnership with NVIDIA, the American multinational corporation and technology company, to deploy its own generative AI on premises of NVIDIA’s accelerated computing platform. In turn, this partnership has provided banks with speed and precision in delivering AI-driven services.
Barb Morgan, chief product and technology officer at Temenos
To get a greater understanding of the impact of AI in the banking sphere, we spoke to Barb Morgan, chief product and technology officer at Temenos.
How will banks utilise AI in 2025?
“AI is no longer a buzzword — it’s defining the winners in banking. In 2025, the biggest shift isn’t just in technology; it’s in mindset. Banking leaders now see AI as a strategic advantage, not just an efficiency play.
“Generative AI (GenAI) is transforming customer experience. Banks are leveraging AI to hyper-personalise financial products in real time, predict customer needs before they arise, and deliver seamless, intelligent interactions across every touchpoint. AI-driven testing is reducing time-to-market for new services, while AI-powered assistants are equipping relationship managers with instant insights.
“Fraud detection is faster, smarter, and more accurate than ever. AI is eliminating false positives, identifying risks in milliseconds, and freeing up talent for higher-value work. The result? Lower costs, stronger security, and a banking experience that feels effortless.”
How will agentic AI impact the future of banking?
“AI is evolving beyond automation — it’s becoming an active decision-maker. But in banking, trust is non-negotiable. That’s why the future isn’t just AI — it’s AI with built-in governance and human oversight.
“Agentic AI is a game-changer. These systems don’t just process information; they learn, adapt, and operate autonomously across complex banking environments. The impact? Smarter fraud prevention, intelligent customer interactions, and fully automated decision-making — without sacrificing control.
“Banks that wait for AI to ‘mature’ will lose ground. Success lies in a phased, strategic approach — scaling AI where it creates the most value while ensuring transparency, compliance, and customer confidence.”
How are banks optimising AI spend while investing in other technologies?
“The priority is clear: invest where AI drives growth, not just efficiency. Banks are doubling down on GenAI, cloud, and SaaS — scaling faster, innovating smarter, and delivering customer value without ballooning infrastructure costs.
“AI is now embedded across every critical function, from fraud detection and credit scoring to hyper-personalised engagement. But the shift isn’t about adopting AI everywhere — it’s about deploying it with precision.
“Banks also want flexibility. Not every AI workload belongs in the cloud. Our collaboration with NVIDIA is accelerating on-premises GenAI, giving banks the ability to serve customers in real time, with full control over their data.”
Core banking modernisation: where does AI come into play?
“Legacy systems are a liability. They drain resources, slow innovation, and hold banks back from delivering the experiences customers expect.
“2025 is the year of decisive action. Banks are moving fast toward modular, cloud-based architectures — breaking free from outdated systems that cost too much and deliver too little. AI is playing a critical role in this transformation:
Intelligent automation is replacing manual workflows, cutting costs, and increasing speed.
AI-powered analytics are driving smarter decision-making and proactive customer engagement.
SaaS is closing the innovation gap, giving banks instant access to the latest capabilities without the overhead of legacy maintenance.
“Banks are shifting from maintaining infrastructure to delivering customer value. Those that modernise now will lead. Those who don’t will struggle to keep up.”
How is AI transforming customer experience?
“AI isn’t just optimising customer interactions — it’s redefining them. GenAI is bridging the gap between customer data and strategic execution, turning insights into action in real time.
“For example, a bank can now ask its AI: “Who are our highest-value customers, and how can we deepen relationships?”
“Instead of sifting through reports, AI delivers instant insights — identifying high-value segments, predicting churn risks, and recommending targeted offers. It’s AI-driven personalisation at scale.”
The result? Faster, smarter, more intuitive banking experiences. Customers get what they need — before they even ask for it.
The future of AI in banking? It’s already here.
“AI is the foundation of smarter banking, stronger customer relationships, and scalable growth.
“2025 isn’t about experimenting with AI — it’s about winning with AI. Banks that embrace AI as a strategic differentiator will lead the industry. The question isn’t if AI will transform banking. It’s who will lead the transformation — and who will struggle to catch up.”
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