The payments industry is undergoing a rapid transformation, and ISO 20022 data is set to play a crucial role in this revolution. ISO 20022 is a global standard for financial messaging that facilitates seamless communication and exchange of data across different payment systems, thereby simplifying the process of exchanging information and conducting transactions among financial institutions. The increasing demand for faster and more efficient payment processing is a major driver of change in the payments sector. With ISO 20022 data, real-time payment processing is possible, enabling faster and more secure transactions. This standard provides a common language and syntax for communicating data across various payment systems, resulting in a more streamlined payment process.

Artificial Intelligence (AI) is playing a crucial role in improving the efficiency and security of international cross border transactions in the payments industry, according to Buckzy Payments Inc. Once regarded as a futuristic technology confined to the realm of films and comic books, AI's science-fiction reputation has given way to practical usage in a fast-growing range of everyday business processes in the finance industry. This extends to cross-border payments, where AI is already automating processes to speed up transactions, strengthen security and improve the quality of service for customers. Abdul Naushad, President and CEO of Buckzy Payments first commented on AI's capabilities in the payments space in January of this year, when he explained its value in reducing human error and instantly calculating credit ratings for customers. But the rapid evolution of AI technology since then means that decision-makers in the payments space are now exploring how AI can help them solve other payment headaches.

South Africa's Apollo Fintech has tapped ThetaRay for its AI-powered cross-border payments monitoring technology Sonar. The tech will be deployed to monitor and screen transactions on its new Knox Wire service, a bank-to-bank cross-border payments system. Apollo Fintech CEO Stephen McCullah says utilising ThetaRay's anti-money laundering (AML) solution will allow the firm "to expand our network of partner financial institutions". Knox Wire enables 30,000 financial institutions to offer their clients near-instant cross-border payments to over 200 countries in 150 currencies with lower transactions costs. "Knox Wire was built to set a new global standard for network size and settlement speed," McCullah adds.

Research predicts the global market for AI in fintech will be worth USD$46.9 billion by 2030 As global business expands, so too does the volume of international cross-border payments: $120 trillion in global B2B payments is processed annually according to research by McKinsey and Visa. And according to Abdul Naushad, President and CEO, Buckzy, Artificial Intelligence (AI) is playing a decisive role in processing these cross-border payments. "Tech advancements and competitive challenges have transformed the payments industry and together have combined to meet both consumer demand and standard banking regulations," said Naushad. A significant part of AI's value in cross-border payments lies in how it substantially improves security. "AI's ability to distinguish patterns and suspicious behaviours is invaluable for identifying fraud and suspicious transactions, and also safely and securely processing sensitive financial documentation," continued Naushad.

The world is at its peak in the digital revolution and proliferation of the latest technologies. Looking at the massive adoption, implementation, and usage of these fast-rising technologies, it is now safe to say that we are entering into the age of automation. The financial service sector or the conservative industry, as it is perceived to be, has undergone some radical changes over the last few years. It is no surprise that the banking sector has been leading and welcoming automation solutions and innovations, given that it is the sector with the most labor-intensive processes. There has also been a paradigm shift with the way clients prefer to communicate with their banks due to the escalation of digital devices.

In the final month of 2018, as news of market volatility, losses from fraud, and pressure for accelerated profits from shareholders continues to challenge treasury professionals, it is tempting to look forward at what treasury trends and innovations we can expect to improve outcomes in 2019. The demand for digital transformation is driving new strategic opportunities and tactical challenges for treasury. It is well known that that the US Federal Reserve intends to continue hiking interest rates in 2019. This progression will push rates to a level where corporate cash managers will want to revise their investing and borrowing practices. As rates rise, the opportunity cost of leaving money in the bank also increases, and many corporates may want to optimize working capital to offset these costs.

Fintech and automation are critical to growing transaction-banking services in the era of Big Data. Faced with more-demanding corporate clients in a multibank environment, transaction banks have invested millions of dollars in creating a seamless technological experience by integrating their banking platforms with those of their corporate and institutional clients. Treasurers want real-time visibility and control over their cash and liquidity, to minimize external borrowings, effectively manage working capital and maximize returns, according to Chet Kamat, CEO of Oracle Financial Services Software. "It is critical to have systems that not only effectively manage and monitor transaction-based liquidity but also help corporates project their positions based on future cash flows," he says. "Treasurers are looking for an integrated system that makes it simple to monitor positions across multiple geographies, with multiple banks, and that eases reconciliation between bank systems and corporate systems."

EXCLUSIVE – Blockchain in cross-border payments will be big in 2018. At least that's what IBM's Rajesh Venkatraman, director of worldwide payments solutions sales at IBM, thinks. "Blockchain technology has many applications, but I believe cross-border payments is especially going to see tremendous traction," he told Bank Innovation. Perhaps that's also because IBM has started numerous pilots in this area. Earlier this fall, it announced a collaboration with startup Stellar, which uses blockchain technology to connect fiat currencies to enable instant international transfers.

SINGAPORE: Temasek International, the management arm of Temasek Holdings, is looking at transnational business-to-business (B2B) payments, fraud detection, as well as artificial intelligence as key areas of investment. Speaking at the Investors Summit on Friday (Nov 17), the president of Temasek International Chia Song Hwee said it will be emphasising on those areas over the next five years. "There is increased complexity and complication between various parties interacting in (the) social and commercial world," said Mr Chia, who is also chief operating officer of Temasek International. "What we want to focus on are the businesses or innovation of technology that will remove the friction in this complicated process." Mr Chia said that B2B payments have very high friction costs, or expenses that come with financial transactions in the form of fees, commissions and tax implications.

While it may seem like Amazon and commercial banks are worlds apart, Amazon's "Day 1" business model offers key success drivers for banks to consider. The Day 1 model, spelled out in CEO Jeff Bezos' 2016 shareholder letter, in essence means the company continually operates as a start-up. Also, Amazon--like other digital giants and fintechs--is raising customer expectations. And in small business credit, Amazon is competing directly with banks. Banks, instead, often operate like Day 2 companies and make good decisions slowly based on a maximum amount of data. While banks cannot completely emulate the Day 1 model due to their critical role in maintaining financial stability and security, and meeting attendant compliance constraints, they can adapt and adopt certain aspects of it.