The ISO 20022 standard marks a pivotal moment in the evolution of payments and communication across the financial industry. As Wai emphasised, the shift to ISO 20022 is not just a technical upgrade but a fundamental transformation that promises to enhance interoperability, compliance, and data utilisation. He noted the excitement surrounding the rich data capabilities that the new standard brings, particularly in areas such as anti-money laundering (AML) screening, fraud monitoring, and compliance reporting.

Despite the promise, the implementation of ISO 20022 comes with significant challenges, particularly given the tight end of 2025 deadlines many financial institutions face. Wai explained how Temenos, as a provider of core banking systems, is working closely with banks to navigate these hurdles.

“We are helping banks harmonise communication and standardise payment solutions across countries, ensuring that the transition not only meets regulatory requirements but also unlocks the full potential of enhanced data for operational efficiency and risk management,” Wai said. He highlighted the importance of looking beyond the immediate pressures to the long-term benefits of improved interoperability and richer data analytics.

The integration of AI and ML into financial services has become almost mandatory, especially as businesses seek to optimise processes, enhance productivity, and improve customer experiences. Wai noted that AI technologies are already being deployed to automate AML checks, sanction screening, and fraud detection. The ability of AI to reduce human intervention while increasing accuracy—such as through the reduction of false positives—is transforming how banks approach risk management.

“AI is now critical in areas like AML and fraud detection,” he explained. “By using AI to monitor suspicious activities, banks can achieve higher levels of compliance and security while reducing operational costs.” He pointed out that Temenos is continuously developing AI-enabled solutions to address these challenges, integrating them seamlessly into the broader financial ecosystem.

As financial services become more digital, the need for security and resilience has never been more critical. Wai stressed that they should be "by design" built into the very architecture of financial services technologies rather than being an afterthought. He referred to discussions with a European bank at Sibos, where operational resilience is at the forefront of strategic planning.

Wai described how Temenos has evolved over its 30 years in the industry, focusing on security by design. He noted that resilience must extend across operational, technical, and quality dimensions to ensure that financial institutions can maintain services even in the face of incidents or disruptions. "We need to make sure that in any situation, banks can stay active and continue to offer their services without compromising security or performance," he said. He is clear about the future of financial services: "The industry is committed and excited about the potential of these new technologies and innovation."

With the ongoing transition to ISO 20022, deployment of more sophisticated AI models, and resilience-focused architectures, the industry is set to confront a future where it may operate more effectively and respond to challenges with greater agility.