Bain & Company: Tech is Redefining the Future of Banking

New research by Bain & Company reveals how technology is reshaping banking from a strategic and financial perspective. The report, Technology Trends Redefining the Future of Banking, was carried out in conjunction with banking tech leader Temenos and draws on joint analysis and data to map how financial institutions are evolving across retail, small and medium-sized enterprises (SME), corporate, wealth and payments.

The findings suggest a fundamental shift in how banks approach technology investment. Financial institutions are no longer simply digitising services, but re-architecting their technology foundations to unlock new revenue streams and operating models. 

Bain and Temenos' report identifies five megatrends shaping banks' technology priorities for 2026 and beyond. These include responsible artificial intelligence (AI) built on trusted core systems, cloud and data infrastructure supporting intelligent operations, AI agents transforming corporate banking processes, stablecoins expanding into practical applications and hyper-personalisation redefining retail and SME banking.

Responsible AI requires governance investment

The report's first megatrend emphasises responsible AI as the foundation of future banking innovation. As regulatory expectations evolve, banks are prioritising governance-led approaches to AI adoption, ensuring transparency, security and compliance are embedded from the outset.

Institutions are increasingly exploring frameworks such as the Model Context Protocol (MCP), which allow AI systems to securely retrieve context and data from core platforms and external services without duplicating data or embedding logic directly into models. This approach could strengthen trust while enabling scalable AI deployment.

"Technology has become central to how banks earn trust, compete and grow," says William Moroney, Chief Revenue Officer at Temenos. "Those treating technology as a strategic asset are gaining competitive advantage, while others are finding it increasingly difficult to keep pace. This report highlights where value is emerging and outlines the technology decisions shaping the future of banking."

The second trend focuses on the infrastructure underpinning modern banking. Financial institutions are accelerating their shift to cloud-native architectures and SaaS platforms to reduce reliance on legacy systems and improve scalability, the report finds.

Cloud and data infrastructure challenges

However, the research emphasises that data remains a critical challenge. Fragmented environments and duplicated datasets – affecting more than one-fifth of banking data – are limiting the effectiveness of analytics and AI initiatives. In response, banks are adopting data mesh architectures to better organise and govern data, unlocking real-time, AI-driven insights.

The third megatrend focuses on the transformation of corporate and commercial banking through automation. AI agents are beginning to orchestrate complex workflows, including deal structuring, compliance checks and documentation, reducing manual intervention and increasing efficiency.

At the same time, corporate treasurers are demanding real-time visibility into liquidity and payments. This, Bain and Temenos say, is accelerating investment in API-driven channels and modern core infrastructure capable of supporting always-on operations.

"Banks are entering a decisive period where technology choices will determine competitiveness for years to come," says Joseph Edwin, a Partner at Bain. "Bain's work across the sector shows that the winners will be those that modernise the core, adopt cloud-native architecture and build governed data and security foundations that allow AI to scale safely."

Revenue opportunities through personalisation

The fourth trend sees stablecoins evolving beyond crypto origins to become credible tools for targeted banking and payments use cases. Financial institutions are increasingly exploring their role in cross-border transactions, liquidity management and wholesale banking.

While stablecoins are not expected to replace traditional systems any time soon, they are becoming strategically relevant – and their adoption introduces both new efficiencies and operational complexities, particularly as banks navigate regulatory and integration challenges.

The fifth and final megatrend highlights the growing importance of hyper-personalisation in retail and SME banking. AI and behavioural data are enabling banks to deliver more relevant, real-time offers, strengthening customer engagement and loyalty.

With banks currently averaging just 2.59 products per customer, Bain and Temenos research says the opportunity to increase share of wallet is significant. This shift reflects a transition from simply delivering digital services to actively monetising customer experiences through technology integration.