Navigating a new era of banking

The past year has been transformative for global money movement. From AI-driven commerce and Generative AI (GenAI) to ID digitization, central bank digital currencies (CBDCs), tokenization, near real-time payments, stablecoins and the transition to ISO 20022, the pace of change for banks is relentless. Change isn’t coming; it’s already here.

Banks are not only facing challenges from new services being developed by fintechs and neobanks, but they are also facing simultaneous shifts that intersect in complex ways. For example, compliance strategies can influence fintech partnerships, data architecture can determine AI viability, and fraud controls can impact customer experience in real-time—particularly in cross‑border money movement environments.

In this increasingly interconnected ecosystem, trust can become a critical thread, woven through every ID check, fraud decision, transaction, and AI-driven recommendation. For banks, adapting to innovation while maintaining trust, interoperability, and customer-centricity is a key to redefining what’s possible.

Recent Finextra research conducted with Visa Direct highlights the pressures facing commercial banks today – from payment speed and integration to fintech competition and digital assets.

A look at some of the changes banks are experiencing right now

AI and advanced automation are increasingly influencing banking operations.

Generative AI (GenAI) is no longer a buzzword; it can be a means for operational transformation. While banks have used AI for decades, GenAI’s scale and speed are unprecedented. It’s automating risk and compliance workflows, streamlining data governance, and has enabled a revolution in fraud detection and regulatory reporting.

For customers, this can mean proactive fraud alerts, and advanced financial health tools. For banks, GenAI can drive efficiency, accelerate revenue growth, and help deliver elevated customer experiences.

But these benefits can come with challenges. GenAI adoption can demand robust data management frameworks, cloud-native platforms, and enterprise-wide intelligence strategies to break down silos and enable real-time insights. At the same time, fraudsters are weaponizing GenAI to amplify attacks, making AI-driven fraud prevention and resilience strategies become increasingly important for banks.

Risk and resilience in global money movement are now a shared responsibility

Risk management is under intense scrutiny. Complex regulations, interconnected ecosystems, and global uncertainty may require banks to rethink strategies and adopt holistic approaches.

Resilience is not a solo effort. Risk to one institution can ripple across the entire financial system. This is reflected in initiatives like the Customer Security Program (CSP), which supports sector-wide efforts to protect the financial community from cyber-attacks. Leading banks are increasingly taking part in intelligence-led testing initiatives. This includes regulatory frameworks such as the Bank of England’s CBEST to support sector‑wide resilience. This threat-led penetration testing simulates real-world attacks to uncover vulnerabilities, while voluntary frameworks can enable institutions to exchange insights on emerging threats.
These efforts can help ensure banks are able to anticipate, withstand, and adapt to evolving cyber challenges, protecting critical services and preserving customer trust.

Stablecoins are helping accelerate cross-border money movement

Stablecoins are no longer a buzz word. They are quickly becoming more integrated into payment workflows to enable faster cross-border transfers and treasury management. Potentially offering shorter settlement cycles, improved liquidity, and expanded availability, stablecoins are helping redefine speed and resilience in modern banking. For certain treasury and commercial use cases, they represent a significant evolution in global money movement.

Regulatory progress such as the U.S. GENIUS Act and EU’s MiCA framework signals a shift in how stablecoins are being viewed, as clearer regulatory frameworks begin to take shape. As this momentum continues, stablecoins could transform cross‑border money movement as much as GenAI has transformed banking operations.

ISO 20022 is strengthening transparency in global money movement

As global payments evolve, ISO 20022 is playing an increasingly important role in improving the security and efficiency of transactions. Its rich, structured data supports advanced fraud detection and anomaly monitoring, helping banks identify suspicious patterns and strengthen AML compliance.

On risk management, ISO 20022 fosters transparency and interoperability, which can reduce friction in cross-border transactions and improve operational resilience. Harmonized messaging and real-time monitoring can mitigate systemic risks while ensuring compliance with evolving regulations.

As adoption continues to expand, ISO 20022 is helping banks strengthen trust and resilience across the payments ecosystem.

Building resilient Visa Direct money movement capabilities for the future

Change has long been a defining feature of the banking ecosystem. The good news is that banks have multiple paths to move forward as they modernize. Incremental improvements, interoperability layers, and smarter data strategies can create meaningful gains today while building toward future-ready global money movement* capabilities over time. Visa Direct works with banks at every stage of this journey; from using AI to help strengthen fraud protocols to exploring how stablecoins can help with treasury management. All with the aim of helping banks strengthen resilience and meet rising customer expectations without disrupting what already works.

Visa Direct. Move money your way.

To learn more about money movement, visit: visa.com/visadirect