Banks are increasing their investment in GenAI but remain concerned about data privacy, legal requirements and accuracy
Temenos, a global leader in banking technology, shared insights from a worldwide survey conducted by Hanover Research, which gathered perspectives from 420 business and technology leaders in financial services on the transformative impact of Generative AI (GenAI) in banking.
Improving operating efficiency is the most common reason banks are considering using GenAI. Banks are also considering using GenAI to improve customer experience and drive business growth.
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The survey reveals:
- Three quarters (75%) of banks are exploring Gen AI deployment with 36% having already deployed or in the process of deploying it, while another 39% are considering opportunities for deployment.
- Among banks already deploying GenAI or exploring opportunities, nearly half (43%) plan to increase their investment in the technology this year compared to last year.
- Despite its promise, most (86%) banks have data protection concerns with GenAI. Additionally, over half cite concerns with legal requirements (60%) and hallucinations—instances where GenAI provides inaccurate results (59%).
- Looking ahead, 73% of respondents agree that Agentic AI—AI systems capable of making decisions and taking actions independently—will transform banking.
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Isabelle Guis, Chief Marketing Officer, Temenos, said: “This survey highlights both the enthusiasm and challenges banks are facing as they explore GenAI. There’s huge potential for GenAI to enhance efficiency, address operational challenges, and elevate the customer experience. However, concerns around data privacy, legal requirements and accuracy remain top of mind. GenAI is not a silver bullet—banks also need to balance a human touch in the process to ensure that interactions remain differentiated and build trust with their customers. At Temenos, we’re helping financial institutions navigate this evolution with secure, scalable, and responsible AI solutions.”
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With flexible deployment options, Temenos enables banks to run its GenAI solutions across cloud, SaaS, or on-premises infrastructure. Temenos is working closely with the leading hyperscalers and recently announced a collaboration with NVIDIA to power on premises GenAI. This collaboration provides banks with exceptional speed and precision in delivering AI-driven services while ensuring privacy and control. Additionally, Temenos has been rolling out internal AI-driven initiatives to enhance productivity and streamline operations.
About the survey:
Conducted for Temenos by Hanover Research in February 2025, gathered insights from 420 banking executives across retail, commercial, credit unions, and wealth management. Respondents, all at director level or higher, held IT or business roles overseeing products, services, or strategy. The survey covered global regions, with representation from North America (47%), Europe (23%), MEA (18%), LATAM (6%), and ANZ (6%).
About Hanover Research
Founded in 2003, Hanover Research is a global research and analytics firm that delivers market intelligence through a unique, fixed-fee model to more than 1,000 clients. Headquartered in Arlington, Virginia, Hanover employs high-caliber market researchers, analysts, and account executives to provide a service that is revolutionary in its combination of flexibility and affordability. Hanover has been named a Top 50 Market Research Firm by the American Marketing Association every year since 2015.
About Temenos
Temenos (SIX: TEMN) is a global leader in banking technology. Through our market-leading core banking suite and best-in-class modular solutions, we are modernizing the banking industry. Banks of all sizes utilize our adaptable technology – deployed on-premises, in the cloud, or as SaaS – to deliver next-generation services and AI-enhanced experiences that elevate banking for their customers. Our mission is to create a world where people can live their best financial lives.
Source – PR Newswire
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