How Banks Can Thrive in the New Cross-Border Payments Era
- Mick Fennell of Temenos advises banks to modernise with AI, cloud-native platforms, and APIs to meet the demands of cross-border payments.
- Real-time payments, digital currencies, and regulatory changes are transforming efficiency, security, and customer experience.
- Overcoming legacy system limitations and investing in agile compliance are essential for banks to remain competitive globally.
As globalisation, migration, and digitisation accelerate, banks are under increasing pressure to modernise their cross-border payments operations.
In a recent interview, Mick Fennell, Business Line Director for Payments at Temenos, explained that the sector is being transformed by rising transaction volumes, policy momentum from the G20, and ever-higher customer expectations for speed, transparency, and cost-effectiveness.
Customers now expect instant, low-cost, and trackable transactions, pushing banks to innovate and adapt at a rapid pace.
Technology at the Forefront
Fennell highlights several technologies revolutionising the sector:
- Artificial Intelligence (AI):
- Enhances fraud detection and reduces false positives.
- Automates exception management, speeding up error resolution.
- Powers smart routing, optimising transaction paths for cost and efficiency.
- Enables personalised customer engagement through virtual agents and predictive analytics.
- Blockchain, Cryptocurrencies, and CBDCs:
- Offer new, faster, and more transparent settlement options.
- Require secure integration with traditional fiat systems.
- Cloud-Native Platforms:
- Deliver scalability, resilience, and flexibility.
- Are now essential for launching new payment solutions and supporting continuous updates.
- APIs and ISO 20022:
- APIs enable real-time, dynamic integration with domestic and international payment systems.
- ISO 20022 unlocks richer data, improving efficiency and compliance.
Despite these advances, many banks are still held back by legacy systems that make it difficult to scale, innovate, or integrate new technologies.
The shift to real-time payments also brings heightened fraud risks, requiring smarter, faster detection systems.
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Fennell recommends that banks migrate to cloud-native, ISO 20022-compliant platforms, build flexible access to multiple payment networks, and embed AI and APIs into their core operations.
Investing in robust compliance and partnering with regulatory experts is also crucial to keep pace with evolving international standards.
Ultimately, Fennell emphasises that banks must be proactive in modernising their payments infrastructure.
Continuous investment in technology, talent, and compliance is essential to meet the demands of a rapidly changing global payments landscape and to deliver the seamless, secure, and efficient services customers now expect.
Edited by Annette George
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