Temenos, a global leader in banking technology, has announced new global research commissioned with Celent, ‘The Banking Expectation Gap: Global Consumer Edition’. The findings reveal that banks face a fight to keep three in four customers as expectations rise for more personalised, advisory and AI-enabled banking experiences. Despite this, just 4% of global banks state that investment in personalisation of the customer experience is their top priority.
The study shows that nearly three-quarters (71%) of banking customers in Europe are only moderately satisfied or less than moderately satisfied with their primary financial institution, creating a large ‘switchable middle’ open to switching for better value, stronger digital experiences and services that reflect their needs. In Europe, payment frustrations (54%) and their digital experience (34%) are leading sources of dissatisfaction. One in four globally have recently considered switching their primary bank, while 56% of global retail banks say it has become more challenging to win and retain customers in the past year.
Personalisation has emerged as a deciding factor in customer loyalty. More than half (57%) of European customers want more financial guidance, while 51% say their bank should better anticipate their needs when they open the app or call. Around 42% want rates or other benefits that reflect the size or length of their relationship with the bank. Together, these findings point to growing demand for banking experiences that feel more relevant, advisory and personalized across both digital and human-assisted channels.
At the same time, customers are increasingly open to AI-enabled engagement where it helps them better understand and manage their finances. More than two-thirds (68%) globally would use a conversational interface for banking queries and younger cohorts show particularly strong interest in AI-powered personalised financial advice. There is less enthusiasm for AI features that take automated actions. Fewer than half of global consumers would ‘definitely use’ AI features that manage purchases on their behalf or perform routine transactions such as bill payment.
Trust remains critical: privacy and data security are the leading concerns about AI in banking, cited by 49% in Europe, followed by errors or inaccurate decisions at 40%.
Banks are making efforts to modernise services in response to these demands, with nearly half (46%) globally saying they plan to make major changes or fully replace core banking systems in 2027. More than a fifth (over 20%) expect to expand AI initiatives beyond internal operations and into direct customer-facing use cases.
Michael Bernard, Principal Banking Analyst, Celent, said: “Customers want banking that feels more personal, more secure and easier to use, while still providing human support when it matters. These expectations are rising just as AI is reshaping how customers engage with financial services, creating a new expectation gap between the experiences customers want and what many banks are currently able to deliver.”
Will Moroney, Chief Revenue Officer, Temenos, said: “What influences customer loyalty has changed dramatically. To win the ‘switchable middle’, including the growing mass affluent market, banks need to deliver the trust, relevance and convenience customers now demand from every financial interaction. With modern technology foundations and responsible AI, banks can turn the Expectation Gap into an opportunity to deepen relationships and drive growth at scale.”
