Sibos 2024: redefining the future of payments together

Within the main theme ‘Connecting the future of finance’, a variety of topics will be explored. What key topic(s) are you looking forward to exploring at Sibos?

“A major focus in Europe is payments modernisation, and a particular focus on instant payments” says António Soares. “With the European Union's new Instant Payments Regulation set to accelerate the modernisation of the financial landscape, instant payments will become the market standard. While the regulation brings significant benefits such as fast and secure transactions on a broader scale, it also brings challenges like implementing a cost-effective platform and increased operational complexity of real-time processing. It is a change that impacts how transactions are handled at every level.”

"For APAC, we are looking forward to further exploring topics such as payment rails innovation, instant payments, digital identity adoption trends, and cross-border payments," says Yip Ly. "All of these developments promise to lower costs, increase financial inclusion, and drive innovations that can set financial institutions apart. We are seeing an accelerating pace of financial services adoption in businesses. Technology and regulatory changes are spurring this massive adoption of financial innovations."

Building on the need for modernisation, innovations in the payments industry is another critical theme at Sibos 2024. In particular the rapid advancements in artificial intelligence (AI). What is the general attitude of financial institutions towards AI in Europe and APAC?

Yip Ly: “Financial institutions need to modernise their infrastructures and leverage the power of AI to enhance the acquisition journey for customers and merchants, while effectively combating sophisticated AI-driven fraud and cyberattacks. This complexity causes banks in the APAC region to be more cautious to implement innovations with AI. However, we should not forget AI also brings the opportunity to drive efficiency and reduce costs for example in customer service, advanced merchant payments and marketing.”

According to Antonio Soares, this is also true for Europe, where financial institutions are open to AI-driven innovations. The AI-discussion in European markets has a strong focus on the privacy and location of the data. “The challenge in Europe lies in balancing sovereignty - maintaining control and visibility on data - with the need for efficiency which often requires depending on specialised parties for security and data management.”

The debate on sharing data leads into another key topic: global payments. What are the major challenges in facilitating cross-border payments in APAC and Europe? 

In APAC, cross-border payments are a high priority. “The volume of cross-border payments are rapidly increasing. There is a growing need to facilitate these payments at both consumer and business levels. Since there is no common currency in APAC, the FX rates and the cost of credit are driving the development of innovative products. The optimisation of interest rates will encourage more credit for expansion. Financial institutions should leverage this growth period and yet keep the risks manageable,” says Ly.

Europe faces similar issues outside the Euro area, according to Soares. “Whereas Western Europe benefits from the single currency, other countries outside the eurozone still face challenges due to different currencies and the increasing need for open and integrated cross-border payments. The implementation of Central Bank Digital Currencies is another example where the eurozone benefits from scale, while smaller countries outside the eurozone face a more complex scenario, also tied to their limited financial power.” 

Collaboration is key

Both Soares and Ly agree that although these are recurrent topics for events like Sibos, they remain highly relevant due to the recent and fast developments in the recent years. The financial sector is at a crossroad, driven by the rapid digital transformation of global society. Now more than ever, collaboration within the industry is essential to create a strong and inclusive financial ecosystem. Financial institutions should navigate these changes but most importantly embrace the opportunities presented. They should seek partnerships with experienced market players in the payments landscape to remain at the forefront of digital innovation.

Meet us at Sibos in Beijing

A dedicated team of Worldline experts, including Yip Ly and Antonio Soares, will be present at Sibos 2024. They are available for appointments to continue this conversation. To schedule a meeting or for more information about Sibos 2024 and Worldline’s attendance this year, please visit the Sibos 2024 website.