The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members. 

The direction of travel is becoming increasingly clear. Through our recent conversations with CTOs and senior technology leaders from banks and building societies, one theme emerged consistently: the future of savings will be shaped not by wholesale system replacement, but by building technology that is flexible enough to evolve alongside customer needs.

For many institutions, replacing core savings platforms simply isn't realistic. Instead, the focus is shifting towards modernising around the core. The underlying platform continues to provide stability, while the surrounding technology becomes more open, modular and API-enabled, making it easier to introduce new products, integrate third-party services and respond more quickly to market changes.

This approach allows organisations to improve the areas customers notice most. Digital onboarding, first funding, customer communications and servicing journeys are all becoming priorities. Improving these touchpoints not only creates a better customer experience but also reduces operational complexity and enables institutions to adapt more quickly as expectations continue to evolve.

Those expectations are changing faster than ever.

Open Banking has made moving money between accounts simpler, while comparison sites and savings marketplaces have made it easier for customers to shop around. Consumers are increasingly willing to switch providers for a better experience or a more competitive rate, meaning digital capability is becoming just as important as the product itself.

Artificial intelligence is also beginning to influence the sector. While many organisations are still in the early stages of adoption, there is growing recognition that AI can support more personalised customer engagement, improve operational efficiency and strengthen decision-making. However, successful implementation depends on having the right technology foundations in place. AI cannot simply be layered onto inflexible legacy systems; it relies on connected data, modern architecture and platforms that are designed to adapt.

At the same time, digital transformation shouldn't come at the expense of human interaction. Building societies, in particular, have long differentiated themselves through trusted relationships and personal service. As younger generations increasingly expect mobile-first experiences and digital self-service, the challenge is to combine intuitive digital journeys with easy access to knowledgeable people whenever reassurance is needed.

The institutions that succeed will be those that strike the right balance: embracing innovation while retaining the qualities that customers continue to value.

The future of savings remains uncertain. New technologies, distribution models and customer behaviours will continue to emerge, often faster than traditional systems can accommodate. Rather than trying to predict every future requirement, organisations should focus on creating technology estates that are flexible enough to respond to whatever comes next.

Ultimately, competitive advantage won't come from a single transformation programme. It will come from continually improving customer journeys, simplifying operations and creating platforms that are ready to evolve alongside the market.

Find out more

Finova's latest whitepaper, The Future of Savings Technology, explores these themes in greater detail through interviews with CTOs and senior technology leaders from across the UK banking and building society sector. Download the report to discover the technology priorities, challenges and opportunities shaping the next generation of savings platforms.