Maximizing core banking benefits using generative AI
Generative AI is helping banks to unlock the full potential of their core banking, enabling faster innovation, personalized customer experiences, and greater efficiency.
By Dimitris Tsirikos, Senior Product Manager
When smartphones became mainstream, banks that embraced mobile apps rose with the tide, while those that dragged their feet struggled to stay relevant.
The same is seemingly beginning to happen with AI.
Many banks are already using generative AI to boost several areas; namely the customer experience (64%), customer support and services (58%), and internal productivity (55%).[1] At the same time, some have not yet embarked on that journey, with concerns about regulatory compliance and data security.
The overall trajectory, however, is clear: the use of responsible AI in banking is accelerating. As Temenos Chief Marketing Officer, Isabelle Guis, recently wrote:
“The train is about to leave the station, and every bank that wants to succeed in the future must get on board. This means educating themselves now and preparing for implementation tomorrow.”
Modernizing the core is an ongoing priority for competitive, customer-focused banks. But, for those aiming to truly future-proof their operations, AI – particularly Gen AI – is becoming an important tool. Since many AI-driven capabilities are based on data, product configuration, and real-time insights, it’s logical that Gen AI is embedded within the core banking platform.
Let’s look at some of the benefits of doing so.
Discover opportunities and address customer needs
Banks generate and store a wealth of customer, product, and market data, but turning it all into actionable insights typically requires deep technical expertise, multiple teams, and time-consuming processes. Gen AI is changing this by enabling faster access to information that is easier to interpret and use. Importantly, this can all be done in real-time to understand which products and services customers might need next or even what they might be lacking now. This is crucial for building and maintaining loyalty. Armed with this knowledge, banks can offer relevant products at the right time, increase cross-sell opportunities, and reduce the risk of customers flocking to competitors if their needs remain unmet.
Imagine a Product Manager wants to introduce a personal loan for young customers. Previously, they would have had to ask a financial analyst or their IT team for data on how many customers the bank has/per age group/per area, as well as their existing products, average balances, and how many of them are employed, etc. Now, the Product Manager can ask Copilot these questions in natural language and get immediate responses, export the data and even access the underlying data queries that were generated, for validation.
This empowers employees to confidently experiment with product design, launch new features and services, and optimize existing products – without needing a detailed understanding of the underlying systems. This is a fundamental shift from waiting days or even weeks for the right information, having a profound impact on time-to-market and, ultimately, revenues.
Empower employees and democratize knowledge
A powerful (yet not fully exploited) benefit of Gen AI is its ability to expand employees’ capabilities and boost productivity. With research showing that over half (55%) of banks are already using Gen AI to boost productivity, this is clearly an area where technology is having a huge impact.[2]
Through intuitive, natural language interfaces, Gen AI helps teams to fully explore and understand the breadth and depth of their core banking functionality. For example, a bank officer no longer needs to go through four screens to find a customer’s ID, accounts, and transactions; they can simply ask Copilot “What are the last two outgoing transactions that John Smith made from his savings account?” – and get an instant response.
Or, an employee who does not recall how to open a safe deposit box could ask Copilot for instructions on how to do so, as per the bank’s processes. Everything is done in a matter of seconds, in a highly intuitive way, leading to faster customer service and more productive employees.
Get more from your data and transform decision making
Banks are under increasing pressure from new players, especially digital disruptors, and established peers to deliver products that truly resonate with their customers and create tangible value. Of course, making sure that those products and services also positively impact the bottom line is equally important.
The ability to interact with data in more dynamic and insightful ways with Gen AI is becoming a key differentiator, enabling banks to identify patterns and understand how products are performing. This helps to provide a more holistic view of performance, transforming how decisions are made, and growth is achieved.
[1] Modernizing Banking Solutions, Hanover Research for Temenos, April 2025
[2] Modernizing Banking Solutions, Hanover Research for Temenos, April 2025
Temenos Product Manager Copilot
Uses generative AI to help Product Managers uncover new customer segments, analyze behavior and competitors, and build compliant, tailored products.
