Bank of America is accelerating the modernisation of its global payments systems to meet rising demand for faster, integrated and transparent services. Rich Clow, head of innovation and strategy for Global Payments Solutions (GPS), oversees the bank’s programme to upgrade the systems, data standards and operational processes that underpin how money moves across borders and between institutions.

Speaking at the Singapore FinTech Festival 2025, Clow said the bank is focused on “cloud computing, the digitisation of payments, and artificial intelligence as the three key enablers of our strategy.” He noted that clients expect financial services to operate smoothly across currencies, systems and platforms, which requires infrastructure that can support this convergence.

The bank is rolling out a payments architecture built on cloud infrastructure, digitised payment standards and artificial intelligence (AI). Cloud platforms provide the flexibility to increase computing capacity in real time and support continuous system upgrades without major disruption. Digitised payment standards, such as ISO 20022, create structured, data-rich messages that improve transparency, reconciliation and interoperability across banks and markets.

“We are making foundational changes to be future-ready, not layering new features on legacy infrastructure,” Clow said. The strategy includes ongoing investment in modular platforms and an emphasis on maintaining compatibility with global networks and local regulatory requirements.

Cloud, digitisation and AI lead the modernisation agenda

Clow highlighted ISO 20022 and SWIFT Global Payments Innovation (GPI) as central to the shift towards digitisation. ISO 20022 introduces a global, structured payment format, while SWIFT GPI improves cross-border tracking and settlement speed. These standards, he said, reduce errors and give clients clearer visibility over their transactions.\

AI is taking on a larger role in cash management and forecasting. “We are building AI tools to forecast working capital across user types, using historical receivables and payments data to support personalised financial planning,” Clow said. The tools help both individuals and treasurers make quicker, better-informed decisions by identifying patterns, anomalies and liquidity needs. Clow added that the bank is bringing learnings from its consumer fraud controls into commercial payments.

Infrastructure priorities centre on compatibility, clarity and connectivity

Clow outlined three priorities for next-generation payments infrastructure: forward compatibility, regulatory clarity and international connectivity. Forward compatibility is essential for allowing legacy systems to operate alongside emerging decentralised finance models, which continue to evolve across both consumer and institutional use cases. “There has to be an interoperability plan that allows traditional and decentralised systems to operate in tandem,” he said.

Regulatory clarity, especially around data localisation, remains critical for global banks. Data localisation dictates where customer and transaction data must physically reside, shaping core architecture decisions. “In markets like India, localisation of data is non-negotiable. We must understand these requirements early to build the right architecture,” he said.

International connectivity is the third priority. Clow pointed to Project Nexus and ASEAN payment linkages, which aim to connect domestic real-time payment systems into regional corridors. “The early versions of Nexus showed promise but lacked governance. The Bank for International Settlements stepping in has helped formalise operations and introduced clearer arbitration structures,” he said. These approaches act as prototypes for scalable cross-border schemes.

Clow added that the G20’s roadmap for faster, cheaper and more transparent cross-border payments by 2027 will likely need an extension. He noted that while corridors such as India–Singapore demonstrate strong results, they still operate at limited scale. “We still need to figure out how to make a global blueprint. How do we include Europe, what about the Middle East, how do we look at North America?” he said. Broader adoption is required to create a consistent global model for data standards, settlement and oversight. These efforts are guiding the bank’s regulatory engagement and infrastructure design.

Clow also highlighted the impact of regulatory developments in the United States (US), citing the GENIUS Act and the rule-writing phase now underway. The legislation provides the foundation for how domestic payment schemes and US-based stablecoins will be supervised, including how authority is shared between federal and state regulators. He expects the process to lead to clearer governance structures, simpler operational rails and more unified approaches to deposit management over the next decade.

Innovation, embedded services and regional lessons shape the bank’s modernisation strategy

Clow said the bank’s innovation approach combines internal development with strategic partnerships, allowing it to scale capabilities quickly while maintaining compliance and resilience. Many fintech platforms require support to meet enterprise-grade standards, and the bank works with selected partners to strengthen their systems. Some platforms are acquired and reconfigured internally.

This collaborative approach mirrors how corporate clients are increasingly consuming banking services. Clow reported rapid uptake of embedded services among corporate clients on the bank’s CashPro platform. He said transaction volumes through application programming interfaces (APIs) are expanding five times faster than use of the web interface, as clients integrate banking capabilities directly into their internal systems. AI is accelerating this shift by analysing transaction flows, forecasting liquidity and recommending supplier terms, helping treasurers move toward real-time visibility and more predictive decision-making.

The same digital foundations are reshaping consumer channels. Growth in peer-to-peer activity through platforms such as Zelle, a US real-time funds transfer service widely used for person-to-person payments, continues to rise. This increase is particularly evident in higher-value transactions, reflecting broader client expectations for secure, intuitive digital experiences. Clow also highlighted the bank’s continued support for third-party wallets such as Apple Pay and Google Pay, as well as integration pathways for digital asset platforms. “We support client choice and provide secure access across whichever platforms they prefer,” he said.

Clow added that Asia Pacific remains a proving ground for payment innovation, with markets such as Singapore and India serving as early indicators of where client-driven digital adoption is heading. “We experiment where our clients need us to be. These markets are setting regional and global examples,” he said.

Simplification shapes the next chapter in payments

Clow said simplification will drive the next phase of financial services. He explained that users value speed, reliability and control rather than the mechanics behind a transaction. “People do not care whether their money moves via automated clearing house, wire or token. They care about spending, saving and investing with control,” he said.

He added that simplification requires managing operational complexity within the system rather than exposing it to users. Embedded finance and AI aim to streamline interactions while maintaining transparency and trust. “Our role is to simplify without losing transparency or trust,” Clow said, adding that this requires workflow transformation and early engagement with regulators and technology partners.

As real-time cross-border payment systems scale and regulatory expectations tighten, financial institutions must ensure consistent, compliant and interoperable services across markets. Success will depend on how effectively banks modernise legacy platforms and align with emerging standards for transparency and resilience. Clow said the future of finance will be defined by how intuitively clients can navigate complex systems without compromising oversight, security or regulatory alignment.