The past year has been one of transformation for transaction banking, marked by resilience, collaboration and the pursuit of innovation. Real-time payments made significant strides, while trade finance demand soared amid supply chain disruptions and economic uncertainty. Sustainability remained a cornerstone of corporate and banking strategies, with progress tempered by the ongoing challenge of greenwashing.
Treasurers leaned heavily on automation to streamline operations and combat fraud, while banks continued to explore partnerships with fintechs to deliver cutting-edge solutions. Across the board, the digitisation of financial processes accelerated, driving demand for better connectivity, seamless integrations and smarter tools.
As we look to 2025, the focus shifts to meeting evolving client needs, adapting to regulatory milestones like ISO 20022 and leveraging advanced technologies such as AI to tackle challenges in liquidity, fraud prevention and forecasting.
Euromoney asked treasurers to outline their top expectations for banking partners in the year ahead. The responses aligned closely with findings from the Corporate Buying Behaviour report, highlighting a clear demand for better service, more competitive pricing and enhanced technology.
Service quality emerged as a critical priority for treasurers, who seek faster and more accurate support from their banking partners. Many respondents emphasised the importance of user-friendly e-banking platforms that offer intuitive interfaces and simplified workflows. Security remains a main concern, with treasurers asking for strengthened measures to protect financial data and transactions. There is also a strong push for more streamlined reporting tools, robust payment-tracking capabilities and seamless integration of banking solutions with their existing systems.
Innovation continues to be a driving force, with treasurers asking for advanced solutions such as virtual account structures or experimenting with AI-driven reporting capabilities. Multi-banking solutions, which enable greater flexibility and centralisation of banking activities, were also high on the list of demands. Enhanced advisory support was frequently mentioned, particularly in areas such as liquidity management, where treasurers are navigating complex challenges brought on by persistent high interest rates.
Treasurers also expect global standardisation of banking formats, which would make cross-border operations more efficient. Improvements in trade finance services also stood out as a pressing need, as corporates look to banks for both innovative solutions and hands-on support to address the realities of today’s dynamic and often unpredictable financial environment.
In addition to exploring what corporates expect from their banking partners, Euromoney brings to you the transformative trends likely to shape the transaction banking landscape in 2025.
Most anticipated regulatory milestone: ISO 20022
After years of discussion, the November deadline for ISO 20022 is finally within reach. For banks, this migration represents one of the most significant technology investments in recent memory, with software providers and consultancies playing a critical role in supporting compliance efforts.
More on ISO 20022
With the November deadline fast approaching, ISO 20022 is the top concern keeping transaction bankers around the globe on edge. In January, Euromoney will launch a special series diving deep into this critical topic, exploring its regulatory implications, technological challenges, adoption hurdles and overall readiness.
Throughout 2024, ISO 20022 dominated conversations with bankers, who highlighted its potential to deliver a standardised model for payments and messaging. Despite its advantages, adoption remains a challenge, particularly for corporates who need more education and guidance to fully embrace the transition.
Corporates have expressed unease and curiosity about ISO20022, keen to understand how it will impact their operations. In a Euromoney flash survey, ISO 20022 was repeatedly mentioned as a top topic corporates want explored further.
Navigating the rate environment
The higher interest rates of 2024 pushed more corporates to seek liquidity and working-capital solutions, placing a greater emphasis on tools that offer enhanced visibility and analytics. Understanding cash positions and tracking funds in real time became critical for organisations navigating the challenges of a tighter rate environment.
Looking ahead to 2025, the role of advanced technology, particularly artificial intelligence (AI), is expected to expand significantly. Banks and software providers anticipate a surge in AI-driven applications, with analytics and forecasting emerging as key areas for innovation. From predicting cash-flow trends to optimising working-capital strategies, AI has the potential to transform how corporates approach financial decision-making.
AI is expected to play a pivotal role in stress testing under varying rate scenarios, identifying cost-saving opportunities, and supporting proactive liquidity management.
Cybersecurity and fraud prevention
The importance of cybersecurity and fraud prevention for corporates cannot be overstated. As financial processes become increasingly digitised and TMS/ERP systems are integrated with banking platforms, businesses are demanding robust, end-to-end security frameworks to safeguard sensitive data and financial transactions.
Banking providers are stepping up to meet these expectations with advanced tools that leverage AI and machine learning to detect anomalies and prevent fraud in real time. Multi-layered authentication protocols, encrypted communication channels and secure APIs for system integration are no longer optional – they are critical components of a resilient financial ecosystem.
Beyond safeguarding, corporates also expect from their banking partners to proactively monitor and respond swiftly to any incidents. What is particularly alarming in the current environment is not just the volume of cyberattacks but their growing sophistication. From deepfake payment schemes to targeted phishing campaigns, threats are becoming increasingly difficult to detect and prevent. This means banks must continuously evolve their defences, ensuring they stay one step ahead of cybercriminals.
Collaboration with fintechs
The pandemic accelerated the digitisation of treasury operations and the momentum continues. Treasurers, often operating with small teams, face growing pressure to expand their roles into strategy. However, the increasing pace of digitisation brings a new set of challenges, particularly in finding team members with the right technical skills. Many treasurers are turning to consultants and third-party providers to handle specialised technical work, to focus on broader strategic goals.
This need for simplification in treasury operations has prompted banks to rethink their product offering. They are now prioritising user-friendly products and interfaces that make complex tasks more accessible to clients. Throughout 2024, many banks began forging partnerships with fintechs and software providers to deliver new capabilities more effectively. These collaborations have enabled banks to leverage fintech agility and innovation, providing their clients with cutting-edge solutions.
However, the rise in regulatory changes is a challenge. Banks must navigate increasingly complex compliance requirements while striving to offer seamless, easy-to-use solutions for their clients. This often forces banks to prioritise certain developments over others, creating tough decisions about resources.
Supply chains reshuffles
Macroeconomic headwinds and geopolitical uncertainties continue to reshape corporate supply chains, pushing businesses to build greater resilience into their operations. While these challenges demand a rethink of traditional strategies, they also present opportunities for corporates to enhance efficiency and strengthen supplier networks.
Many organisations are exploring trade finance tools not only to bolster their supply chain resilience but also to improve data utilisation. From forecasting and system integration between treasury and business units to embedding sustainability into operations, supply chain reshuffles are sparking innovation across the board.
The impact extends far beyond trade finance. Corporates are re-evaluating their approaches to foreign exchange (FX), aiming to bring it closer to the remitter to optimise payments and reduce exposure. They are also experimenting with diverse payment methods to streamline processes and adapt to the demands of global commerce.
In this evolving landscape, a bank’s global reach is becoming a decisive factor. Whether through proprietary networks or partnerships with agency and correspondent banks, financial institutions with cross-border capabilities are better positioned to meet the needs of corporates beyond their home markets.
This year, transaction banking saw big changes driven by real-time payments, sustainability goals and automation. Demand for trade finance surged, too, with companies scrambling to find solutions for supply chain disruptions and economic uncertainty. Sustainability stayed in the spotlight, with efforts to tie trade finance to net-zero goals, though greenwashing remains a hurdle. Meanwhile, treasury teams leaned into automation to fight fraud and simplify processes, with plenty of work still to do. It has been a year that not only shaped the way businesses operate, but also setting the foundation for a transformational 2025.
RTP: are we on the brink of a breakthrough?
Real-time payments have been a hot topic this year, especially as businesses grapple with what they mean for day-to-day operations and the push towards seamless cross-border transfers. But getting there isn’t straightforward. As Annelinda Koldewe, global head of wholesale banking payments at ING, explains, moving to instant payments means rethinking treasury operations entirely – from understanding what to do with balances that arrive over the weekend or managing currency risks outside office hours. “The real game-changer is connecting instant payment systems across borders to speed up international transfers,” she says.
Cross-border payments were a hot topic at Sibos, with plenty of solutions presented. For example, Visa Direct is offering a way to link banks, fintechs and payment processors. “We’re expecting significant growth as more companies adopt it,” says Francisco Morandeira, client solutions director at GFT. Still, he notes that while Visa Direct complements traditional systems such as Swift, it will have to compete with newer account-to-account payment options.
Sepa One-Leg Out and Project Nexus are attempts to tackle the challenge globally. Bob Stark, head of market strategy at Kyriba, sums it up: “Domestic instant payments work well, but international real-time transfers are the missing piece. CFOs are pinning their hopes on Project Nexus to solve it.”
Then there’s tokenisation, with players such as Citi Token Services and JPMorgan’s Kinexys leading the charge.
At the same time, data-sharing challenges in cross-border payments are front and centre, as discussed at Sibos in a panel of experts led by Euromoney’s chief research officer Andrei Charniauski.
But here’s the big question: is this maybe a world of too many choices? 2025 should bring some answers on viability of some of these options.
Trade finance demand soars amid uncertain times
The demand for trade finance is heating up, with companies expecting to rely more on these solutions over the next three years. According to Euromoney’s Trade Finance Survey 2024, this surge is being driven by the need to optimise working capital, manage reshoring projects, and navigate ongoing political and economic uncertainty.
Mark the date: February 18, 2025
Euromoney’s Trade Finance Survey 2025 results are going to be published on February 18, 2025. Keep an eye on our website and our social media to see who receives the title of world’s best bank for trade finance.
Supply chain disruptions, including bottlenecks at the Suez and Panama canals, have added layers of complexity. Companies are moving away from just-in-time inventory models to protect against future shocks, a shift that requires more sophisticated trade finance solutions. “Corporates now need more than basic financing; they need strategies that address supply chain vulnerabilities,” says Mencía Bobo, global head of trade and working capital solutions at Santander CIB.
The survey also highlighted how critical access to credit from trade banks is for keeping international commerce flowing, especially with risks on the rise. Sriram Muthukrishnan, group head of global transaction services, product management at DBS Bank, notes that banks are stepping up, offering supply chain financing programmes that bridge working-capital gaps and ensure trade financing remains accessible.
Banks are collaborating to ease credit constraints. By distributing and selling trade finance assets on secondary markets, they are creating more room for new financing. “As demand for credit grows, distributing these assets allows us to free up capacity and meet rising needs,” explains Joon Kim, managing director and global head of trade finance at BNY Mellon Treasury Services.
Embracing trade digitisation
Banks are ramping up efforts to digitise trade processes, with each taking a unique approach. Commerzbank, for instance, is simplifying guarantee applications for small and medium-sized businesses, making the process faster and more accessible. Meanwhile, ING Benelux is zeroing in on client-centric initiatives, focusing on industry collaborations, regulatory engagement, investments in emerging technologies and partnerships with fintechs.
At JPMorgan, the shift to a digital-first strategy revolves around adopting an omnichannel model, ensuring a seamless client experience across platforms. Santander has teamed up with SAP to enhance client-to-bank connectivity, while DBS Bank is offering a suite of digital tools that allow clients to interact through their preferred channels.
BNY Mellon is playing a proactive role in shaping the future of trade digitisation by collaborating with regulators and industry bodies to develop supportive rules. UniCredit is taking an operational approach, leveraging technologies such as optical character recognition and AI to streamline internal trade processes.
As banks continue to innovate, the push for digitisation is not just about efficiency but also about creating a more connected and adaptable ecosystem for global trade.
Sustainability beyond the buzz
Sustainability has been a dominant theme in trade finance for years, but six years after the Paris Agreement, the world is still searching for the right tools to accelerate the net-zero journey. Many believe trade finance instruments hold the key, but to make a real impact, accurate data, reliable reporting and efficient processes are essential.
For banks, the challenge lies in encouraging companies to adopt sustainable trade finance solutions while ensuring these tools genuinely deliver. The spectre of greenwashing looms large, making credibility and trust critical. Natasha Condon, global head of trade sales at JPMorgan, emphasises the need for clear standards. “Our criteria for sustainability-linked lending are very rigorous, and many companies see that as a positive,” she explains. “They want to ensure their sustainable facilities can stand up to scrutiny and show measurable results.”
As sustainability continues to rise in the trade finance agenda, the focus is shifting from rhetoric to results. The challenge now is building a framework that ensures measurable impact while supporting companies in their green transitions.
Lingering gaps in automation story
Treasury automation took centre stage in 2024, with corporates urged to stay vigilant despite advances in multi-factor authentication, encryption, and behavioural analytics aimed at reducing fraud and protecting payment data. However, manual processes still linger.
Outsourcing to banks or technology providers has emerged as a potential solution for companies struggling with limited tech exposure. Even well-resourced treasury teams are increasingly interested in leveraging bank-provided solutions to streamline operations.
Despite opportunities, significant challenges remain. Steve Round, co-founder of SaaScada, advised banks to focus on smaller, high-impact projects to demonstrate how technology can boost efficiency and unlock revenue while managing costs. Meanwhile, iGTB CEO Manish Maakan flagged technology complexity as a key barrier to innovation.
For successful automation, fostering a culture of innovation, building strategic partnerships, and training employees in data analysis and core banking knowledge are critical. As John Skinner, co-lead, treasury service payments at JPMorgan, notes: “Data skills and refreshed banking fundamentals are vital as treasuries embrace digitisation.”
In case you missed the findings of the world’s most comprehensive benchmarking exercise in transaction banking:
Treasurers’ key priorities
Corporate treasurers are navigating an era of rapid change, with globalisation, emerging technologies and new business models reshaping their roles. Amid these shifts, treasurers face a delicate balancing act – managing day-to-day responsibilities while planning for long-term challenges such as cyber threats and fraud. To succeed, they must become ‘renaissance professionals’, blending financial expertise with technical skills and strategic foresight.
Euromoney’s Cash Management Survey 2024 tapped into the minds of more than 30,000 treasury and finance professionals worldwide to uncover their key priorities. Treasurers value cash management providers who excel in service, agility and responsiveness. Comments such as “quick response to all inquiries” and praise for accessible account managers highlight the importance of human connection in an increasingly digitised world.
Technology and innovation are also top of mind, with treasurers looking to banks and tech vendors for cutting-edge solutions and strategic support. These partnerships will shape how treasury functions evolve in the face of a dynamic, uncertain environment.
Banks meeting the treasurers’ evolving needs
The banks leading the Euromoney Cash Management Survey in 2024 stood out for their ability to deliver services globally while refining core operations to enhance the client experience. Initiatives such as extended payment cut-off times and streamlined onboarding processes were key, with many banks also embracing fintech collaborations.
From integrating APIs and automating payment workflows to leveraging AI for risk management and liquidity planning, digital tools are becoming indispensable for improving efficiency and making smarter decisions in uncertain times. Cost control also emerged as a critical focus, with companies seeking to lower fees and transaction expenses. The best-performing banks took a proactive approach, solving challenges with innovative, client-centric solutions. They strengthened partnerships, simplified processes and tailored offerings to specific needs, delivering both global and regional value.
Looking ahead, treasurers will need to adapt to shifting responsibilities and create more value within their organisations, while banks must stay attuned to their clients’ unique requirements. The most successful providers will be those that listen, innovate and deliver solutions that make life easier and businesses stronger.
Corporates’ biggest wins in 2024
In a flash survey, Euromoney asked corporates in our audience about their biggest accomplishments in 2024. The answers were clear: innovation, efficiency and strategic growth. Many organisations highlighted connectivity upgrades, such as implementing new treasury management systems (TMS) or building APIs to enhance their operations. Efficient cash management and optimising working capital were also top priorities, helping companies navigate high interest rates and cut borrowing costs.
Cost-saving initiatives featured prominently, including reducing the number of banking partners, controlling fees and lower funding costs through better capital and debt market strategies. Treasurers increasingly embraced their strategic role, partnering with banks to align with growth objectives, support new product launches and facilitate acquisitions.
Operational improvements were another standout, with treasurers driving better bottom-line performance and adopting flexible business models to stay resilient in a rapidly changing environment. 2024 was the year treasurers proved their value as key players in shaping corporate success.
