Let’s take a stroll down memory lane. What was it like in 2022? Well, that was before the bank collapses of March 2023. And, while the market was showing signs of a slowdown from 2021, things hadn’t hit the fan yet. It’s likely those survey results reflect a generally positive attitude toward innovation and desire to move forward. In particular, the need to for greater integration support points to a fintech fervor at the time, when everyone was high on open banking, Banking-as-a-Service (BaaS), and the possibilities of plug and play.

Things have clearly changed. In fact, when was the last time you heard anyone talk about plug and play with any real enthusiasm? The 2024 data suggests that bankers have truly gone back to the basics, and the ones leaving their core providers now are not those frustrated by their capabilities but those who feel the relationship has soured. This is the innovation pendulum in the wild. (To be fair, this data is from 2024, but aside from chatter about AI and stablecoins, things feel similarly today; innovation still doesn’t seem to be getting the same level of attention or urgency it once had.)

Meanwhile, technology hasn’t advanced so fast in the last few years that core systems no longer have capability shortfalls. Many legacy cores still struggle to integrate and stay current with new technologies. So, a reasonable explanation for the latest results is that bank leaders don’t care about those things as much, or at least not enough to make a change. This is deeply, deeply disappointing. Technological advancement should not be a fad; it should be a pillar of a carefully crafted and future-driven strategy.

As core contracts come up for renewal, banks should take on this challenge: Formally review your strategy, review your core’s capabilities, and map them to each other. Make sure that the bank’s technology can support its future vision. Don’t assume it does, and don’t go off a gut check. Take the time to assess whether you’ve got what you need for the future. Even if it turns out that the bank’s current system is suitable, this work can help uncover areas and asks that will be important in renegotiating with your existing provider.