In this post, you’ll learn why the gap between what customers expect and what banks deliver is widening, why payments are one of the biggest pressure points, and why core modernization is becoming harder to postpone. You’ll also see how AI is changing the modernization conversation for large banks, and why retention numbers can be misleading if loyalty is slipping underneath them.

The biggest message from Temenos’ global banking expectations gaps research is simple: banks may be retaining customers, but not necessarily winning their loyalty.

Will Moroney, Chief Revenue Officer at Temenos, described a growing expectation gap between what customers want and what they actually receive from their banks. The surprising part of the research was not just that the gap exists – it was how many people are living in the middle of it.

Three-quarters of respondents said they were only moderately happy with their bank. That may sound acceptable at first glance, but it’s exactly what makes it dangerous. If customers are merely satisfied rather than genuinely loyal, they are far more likely to try another provider for a payment service, a lending product, or even a full banking relationship.

This is what Temenos calls theswitchable middle – customers who are not unhappy enough to complain, but not loyal enough to stay protected. In other words, they are already halfway out the door. Why “moderately happy” is a warning sign Banks often look at retention metrics and assume they’re in a healthy position.

But as Moroney pointed out, retention can hide the fact that customers are quietly spreading their financial lives across multiple providers.

Source link