As we head into 2024, banks, credit unions and other FIs need to ensure their plans for the upcoming year address some trends which may not yet be on their radar. Join Hal Ramakers from Brightwell and Richard Meszaros from Visa Direct to understand the potential impact these are expected to have on cross border payment strategies:
- The rise of decentralized finance (DeFi): DeFi is a new wave of financial services that are built on blockchain technology. DeFi has the potential to disrupt the traditional financial system, including the cross-border payments industry.
- The increasing popularity of central bank digital currencies (CBDCs): CBDCs are digital currencies that are issued by central banks which have the potential to revolutionize the way that cross-border payments are made.
- Embedded Finance: Embedded finance, integrating financial services into non-financial platforms, could transform how consumers make cross-border payments.
All of these are happening amidst the well-documented demand by both consumers and businesses for quicker payments. This is driving innovation across the cross-border payments industry, with new developments continuing to roll out to enable ever-faster speeds and greater efficiencies, as evidenced by Visa Direct's growth and the adoption of FedNow. In addition to unpacking these trends, Hal and Rich will provide an industry outlook for 2024 and beyond, highlighting such important issues as:
- Accelerated Adoption of Emerging Technologies: Blockchain, artificial intelligence, and machine learning will play a more prominent role in streamlining cross-border payments.
- Increased Focus on Cybersecurity: With the rise of digital transactions, cybersecurity measures will become paramount to protect consumer data and prevent fraud.
- Emergence of New Payment Solutions: New payment solutions, such as real-time payments and embedded finance, will gain traction, offering greater convenience and efficiency.
For a successful 2024, financial institutions should keep an eye on these trends and be prepared to adapt to the changing landscape. Enlisting the help of a proven fintech partner will ensure access to the technologies and capabilities required for a competitive cross-border strategy.
