Finastra: How AI and Modernisation Are Converging

In payments, innovation rarely happens in isolation. What is emerging now is something more powerful – the convergence of multiple trends that, together, are reshaping how banks operate and deliver customer experience. 

In this conversation, Radha Suvarna, Chief Product Officer for Payments at Finastra, highlights their recent report exploring how AI and modernisation are no longer separate priorities – they are becoming mutually reinforcing forces. 

Access the full report here: https://www.finastra.com/financial-services-state-nation-survey-2026 

For many banks, modernisation has been an ongoing theme for years. The move toward cloud-native, microservices-based, API-enabled platforms is about more than technology refresh – it is about creating systems that are flexible, scalable, and forward-compatible. But historically, progress has been gradual. 

AI is now accelerating that journey. 

With the ability to automate coding, testing, and operational processes, AI is enabling banks to experiment faster and iterate more effectively. What once took months can now be tested in significantly shorter cycles. At the same time, modern platforms are making it easier to deploy and scale those AI-driven capabilities. Together, they create a multiplying effect – each strengthening the impact of the other. 

The practical applications are already visible. 

In areas such as fraud detection and sanction screening, AI models are improving accuracy and reducing false positives. This not only lowers financial losses but also enhances customer experience by avoiding unnecessary transaction delays. In operations, AI is helping to streamline processes such as payment repair – reducing resolution times and improving efficiency for both banks and customers. 

These improvements are becoming even more critical as payments evolve. 

The rise of real-time and immediate payments is changing expectations. Transactions must be processed in seconds, leaving little room for manual intervention. At the same time, customers expect greater transparency, more payment options, and seamless digital experiences. This creates both an opportunity and a challenge.

On one hand, banks have more ways than ever to differentiate – through personalised experiences, faster services, and improved visibility. On the other, they must maintain the trust and reliability that underpin the payments ecosystem. Payments must work every time, securely and without failure. 

Looking ahead, Suvarna points to a broader shift driven by the convergence of AI, faster payments, and emerging technologies such as stablecoins and distributed ledger systems. Together, these trends are creating a more dynamic and complex payments landscape. 

For banks, the path forward is clear – but not simple. 

They must prioritise trust and security, commit to ongoing modernisation, lean into AI experimentation, and partner across the ecosystem rather than attempting to build everything in-house. 

In a rapidly evolving environment, success will depend not on any single technology, but on how effectively these forces are brought together to deliver better outcomes for customers.

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