Temenos and Celent: US Banks Risk Losing the “Switchable Middle”

07 September 2026
#Temenos#Celent#USBanking#CoreBanking#AgenticAI
Temenos and Celent: US Banks Risk Losing the “Switchable Middle”
3 min read

New research from Temenos and Celent suggests US banks face a widening gap between customer expectations and their ability to deliver modern, trusted digital banking experiences.

The report, The Banking Expectation Gap: US Consumer Edition, identifies a large “switchable middle” of customers: 75% of respondents are only moderately satisfied — or less — with their primary financial institution. At the same time, 62% of US banks say winning and retaining customers has become more difficult over the past year.

The findings show that several core areas of the banking experience remain weak points for customers:

  • Nearly half of consumers report dissatisfaction with payment services;

  • 42% are dissatisfied with security and fraud protection;

  • More than one-third are least satisfied with value-based offerings, including fees, rates, and rewards;

  • 51% would consider switching for better rates and fees on credit products;

  • 39% cite improved online and mobile banking features as a reason to move to another provider.

The research also highlights growing consumer interest in AI-powered banking. Around 67% of respondents would use conversational AI for everyday banking tasks, while 39% use or would definitely use AI tools to make authorised purchases. However, trust remains a decisive factor: 48% are concerned about privacy and data security, and 34% worry about errors or inaccurate AI outcomes.

For banks, legacy technology is a major obstacle. Nearly half (46%) acknowledge that existing systems limit their ability to innovate, while 30% say legacy infrastructure constrains Generative AI deployment. More than 60% are considering core banking transformation, and 22% place it among their top three priorities for 2026–27.

Michael Bernard, Principal Banking Analyst at Celent, said banks must combine modern digital experiences with relationship-aware personalisation and credible human support. Brian DuVal, President of North America at Temenos, added that technology modernization only becomes a competitive advantage when customers can directly feel the difference through faster, more flexible, and more trusted services.

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