Why Progressive Modernisation is the Smart Way to Upgrade Core Banking

At TCF 2026, Barb Morgan from Temenos highlighted how trust acts as the fundamental pillar of modern banking. According to Morgan, establishing this trust is what allows financial institutions to build strong, lasting relationships with their own customers, explaining that this trust serves as the necessary foundation for the next stage of development: modernisation.

Banks are currently at a critical inflection point where customer expectations have risen sharply as today’s consumers are looking for hyper-personalised products and on-demand service, which is pushing institutions to modernise their platforms to stay relevant. While some banks choose to overhaul their core systems entirely, Morgan notes that many are finding success with a strategy Temenos calls progressive modernisation. This involves upgrading specific areas, such as lending or deposits, one piece at a time, allowing banks to solve their most pressing pain points while maintaining speed and agility.

A significant part of this innovation journey has been the Temenos design partner program and Morgan emphasises that real, usable innovation happens when technology providers co-build solutions with banks. By combining Temenos’ product expertise with direct, real-world feedback from bank back-office teams, they ensure that new products are ready for market the moment they are launched. The program has been met with significant enthusiasm, which Morgan views as clear evidence of the industry’s strong demand for collaborative, practical innovation.

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