Bottomline research finds that structured data, real-time fraud controls and coordinated workflows are becoming the next competitive battleground as institutions move beyond connectivity.
Payments modernisation is entering a new phase in which the main value is no longer simply better access to networks, but better use of the information that moves through them. Bottomline’s “Payments Intelligence Gap” research, based on insights from more than 300 payments professionals worldwide, says the industry is shifting from connectivity alone towards payment data, fraud intelligence and orchestration as the key sources of competitive advantage. The report argues that institutions are increasingly judged not just on whether they can process payments, but on how well they can turn those flows into efficiency, resilience and growth.
That shift is particularly clear in the move towards ISO 20022, the richer messaging standard that is becoming central to many modern payment rails. Bottomline says 65% of respondents identified structured data quality as the biggest obstacle to becoming ISO 20022-enabled, underlining the gap between adopting a standard and actually using it well. The same research found that 38% see higher straight-through processing as the most valuable near-term use case, while 29% pointed to faster investigations and 24% to fraud and sanctions screening. Payment systems, in other words, are moving from simply carrying instructions to carrying intelligence.
The same pressure for better intelligence is reshaping fraud prevention. Bottomline’s survey found that 44% of respondents regard mid-transaction fraud detection as the biggest gap in the payment lifecycle, ahead of pre-payment validation at 28% and end-to-end visibility at 19%. That reflects the speed of modern payment flows, where institutions often have only a narrow window to spot suspicious activity before money leaves the account. Solutions from firms such as DataVisor show how the market is responding: by using customer, beneficiary, device and behavioural signals before funds are released, and by making decisions in real time to approve, hold, decline or escalate a transaction.
Another theme running through the research is orchestration. As institutions manage more payment schemes, networks, data formats and regulatory demands, each new connection can add another layer of complexity unless the workflow is coordinated across the whole stack. Platforms from companies such as CPN and ACI Worldwide illustrate this approach, bringing validation, enrichment, routing and message handling into a single operating model. Sciforn’s Atlas platform goes a step further by combining cash, payments and risk management, with real-time visibility across banks, entities and currencies and built-in fraud and sanctions controls. The broader point is that the modernisation challenge is no longer just technical connectivity, but the ability to control the full payment journey.
Bottomline also highlights a difference between institutions that are merely keeping pace and those that are pulling ahead. It identifies a group it calls “Payment Pioneers”, describing them as firms that offer innovative technology and artificial intelligence integration to corporate customers. Within that group, 50% reported good or excellent agility in integrating new payment solutions, compared with just 7% of other financial institutions. The report says these firms also tend to post stronger results in processing speed, compliance automation, fraud detection, operational efficiency and cash visibility. That suggests the benefits of modernisation can compound when data, controls and workflows are designed to work together.
The larger lesson, Bottomline argues, is that modernisation is becoming a continuous process rather than a one-off programme. ISO 20022 will keep evolving, fraud tactics will change and regulatory expectations will keep shifting, while new technologies and settlement models continue to emerge. For institutions, the question is increasingly whether they can adapt without creating more silos or unnecessary cost. In that sense, the next phase of payments modernisation is less about connecting to more rails and more about extracting more value from the ones already in place.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
