Finastra’s Paris on bringing the future forward

Supply chains are decoupling, there is a US$2.5 trillion trade finance gap and political change is reshaping trade flows and economic priorities. Finastra’s then CEO Simon Paris, who left the role earlier this month, sets the scene: “Trade finance should grow faster than GDP, but it’s not. This mismatch widens the trade finance gap and impedes global prosperity. We also see the dynamics between China and India alongside the rise of South-South trade relationships, the reshaping of trade flows and economic priorities. Self-reliance in manufacturing is increasing globally, particularly in high-tech industries. All these trends highlight the urgency of innovating solutions for poverty alleviation and economic resilience.”

Technology is the foundation to tackle these challenges. Through its focus on consolidation and standardisation, Finastra enables banks to modernise operations, reduce costs and enhance resilience, according to Paris.

There is a pressing need for scalable, robust systems that can handle exponential growth in transaction volumes. Beyond just volume, the global nature of transaction banking requires seamless operations across regions. “A conversation with a Japanese bank might bounce from Asia to the United States to Europe and back to Japan,“ Paris notes. “Clients expect solutions that are globally relevant but locally adaptable.“

The key to managing this acceleration lies in a flexible-architecture approach. “We focus on composable banking services, microservices exposure and cloud-native solutions that are deployable on-premises if needed,“ Paris highlights. “This hybrid approach ensures that transaction banks have flexibility without compromising performance.“

Modernisation is not just about upgrading systems – it’s about fundamentally rethinking how processes are structured and deployed. Sylvie Boucheron-Saunier, Finastra’s chief revenue officer for payments, refers to specific innovations such as AI-powered payment tracking and telemetry tools. “Right now, tracking a cross-border payment can involve numerous manual steps, multiple systems and significant delays,“ she explains. “By leveraging AI and real-time data, banks can benefit from transparency and observability at every stage of a transaction.“

She also highlights the rise of alternative payment rails as a critical evolution in the payments space. Whether it is Swift, direct messaging or other cross-border options, providing agnostic platforms capable of integrating with different payment infrastructures is the future. This is particularly important as banks face mounting regulatory requirements and require solutions that can adapt quickly to new compliance standards without overhauls.

Paris and Boucheron-Saunier emphasise that digital transformation is not just about technology — it is about mindset. Banks must distinguish between differentiating front-office services and non-differentiating back-office processes. “The mindset shift from building bespoke back-office systems to adopting scalable, standardised platforms is critical,“ says Paris. “No matter how large a bank is, its back-office processes alone can’t achieve the economies of scale that standardised platforms can offer across thousands of institutions.“

Boucheron-Saunier brings a real-life example. “We worked with a bank that made the bold decision to use an off-the-shelf Finastra solution for both domestic and international payments,“ she explains. “This was a revolutionary mindset shift for them, and the results speak for themselves. In just six months, their straight-through processing (STP) rates skyrocketed from 10% to 97%, and operational costs plummeted.“ This success story underscores the importance of scalability, standardisation and, crucially, trust in proven technology partners.

Paris adds that banks must focus on differentiating at the front while standardising at the back. “Innovation happens at the customer interface – the advisory services, pricing strategies and tailored experiences,“ he says. “The back-office, meanwhile, should be standardised and scalable.“

Paris and Boucheron-Saunier highlight the importance of cultural transformation within banking institutions. “We see a significant gap in talent and skills within the industry,“ Paris notes. “Resources are still being deployed to maintain non-differentiated processes instead of being focused on areas where banks can truly innovate – like customer engagement and product development.“ For Paris, this is not just an operational issue; it is a strategic imperative.

Cultural transformation also means embracing change at every level of the organisation, says Boucheron-Saunier. “Innovation isn’t limited to groundbreaking technologies. Sometimes, it’s about adopting a different perspective on how things are done,“ she says. “We’ve seen banks transform not just their systems but their entire operational mentality, and the results are profound.“

This cultural shift extends to breaking down silos. “Banks often have heads of mortgages, heads of loans and heads of payments – but the customer journey doesn’t fit neatly into these boxes,“ Paris points out. “The focus must shift from product silos to end-to-end customer experiences.“

Finastra’s vision extends beyond commercial success. “We talk about doing well by doing good,“ Paris states. From enabling green finance initiatives to reducing costs for cross-border remittances, Finastra seeks to democratise access to financial services and drive positive societal change.

Sustainability is embedded in Finastra’s mission and product offerings – it collaborates with leading banks to embed environmental, social and governance (ESG) considerations into operations. Paris highlights one such initiative: an ESG service that enables price differentiation based on sustainability metrics. This ensures financial incentives align with green objectives and provides an audit trail for transparency.

Boucheron-Saunier highlights the role of technology in combating biases in lending and payments. “Algorithmic fairness isn’t just a technical challenge – it’s a moral imperative,“ she highlights. “Why should a woman pay more for a loan than a man, or a person of colour face higher costs, all else being equal? These are problems technology can and must solve.“

Paris emphasises that sustainability is not just a corporate responsibility but a competitive advantage. “Banks that integrate ESG into their operations can differentiate themselves in a crowded market while contributing to a better world,” he says.

For transaction banks, the choice is stark: adapt and lead or lag and lose relevance. The tools, technology and strategic insights are available – the question is whether banks will have the courage to act.

The challenge is to move from intention to execution, from strategy to action and from ambition to measurable outcomes. As Paris says: “See the future, don’t resist it. Embrace it.”