The Payment Revolution Is Redefining Customer Loyalty
Mark Walker, editorial director of The Fintech Times, sat down with Will Moroney, chief revenue officer of Temenos, during SIBOS Miami 2026. The interview, held on October 7, explored why banking customers are increasingly dissatisfied, how payment innovations are reshaping expectations, and why core‑banking modernization is now a strategic imperative. Moroney emphasized that banks must accelerate digital transformation or risk losing relevance.
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OneSpan Unveils New e‑Signature Features Including Identity Wallets and AI Workflow SupportMoroney traced the widening disconnect to three intertwined forces: rising consumer expectations driven by tech giants, the proliferation of instant‑payment solutions, and legacy core systems that struggle to keep pace. „Customers now assume their bank can deliver the same frictionless experience they get from a ride‑share app,” he said. Yet many institutions still rely on decade‑old mainframes, causing delays, errors, and costly workarounds. The CRO highlighted Temenos’ recent rollout of its Cloud‑Native Banking Suite, which promises real‑time processing and modular upgrades. He noted that early adopters have reported a 20 % reduction in transaction latency and a 15 % boost in net promoter scores within six months.
Payments have become the litmus test for banking satisfaction. Moroney explained that instant, cross‑border transfers are no longer a premium feature but a baseline expectation. „When a customer can send money abroad in seconds, any lag in their core system feels like a failure,” he observed. Temenos’ new payment orchestration layer integrates with over 200 global networks, allowing banks to offer unified, real‑time settlement without overhauling their entire stack. Data from a recent Temenos survey showed that banks that upgraded their payment infrastructure saw a 12 % increase in active user accounts year over year, compared with a 3 % decline for those that did not.
Can Legacy Core Systems Survive the Push Toward Real‑Time Banking?
Moroney warned that clinging to monolithic cores is a recipe for obsolescence. He cited a case where a mid‑size European bank attempted a piecemeal upgrade, only to encounter integration failures that halted new product launches for months. „Patchwork fixes create technical debt that compounds,” he said. The CRO advocated a „cloud‑first, API‑first” approach, where banks replace legacy components with micro‑services that can be scaled independently. Temenos offers a migration pathway that allows institutions to run core functions in the cloud while retaining critical on‑premise workloads during transition. Early results suggest a 30 % cut in operational costs and a faster time‑to‑market for new digital services.
The conversation concluded with a clear message: banks that fail to modernize risk eroding trust and market share. Moroney predicts that by 2028, institutions still dependent on legacy cores will see a double‑digit decline in customer retention, while those embracing cloud‑native platforms will capture the majority of new digital banking revenue. The pressure to close the expectation gap is intensifying, and the next wave of banking innovation will be defined by speed, flexibility, and a relentless focus on the end‑user experience.
Frequently Asked Questions
What is the primary cause of the gap between customer expectations and bank delivery? Customers now expect seamless, instant experiences similar to those offered by tech giants, but many banks still operate on outdated core systems that cannot meet those demands.
How does Temenos’ Cloud‑Native Banking Suite address payment delays? The suite provides real‑time processing and integrates with hundreds of global payment networks, reducing transaction latency and enabling banks to offer instant cross‑border transfers.
What are the risks for banks that delay core‑banking modernization? Delaying modernization can lead to higher operational costs, slower product launches, and a significant drop in customer satisfaction and retention, potentially resulting in double‑digit revenue losses.
