Banking Exchange Talks Payments in 2026 with Finastra Executive

Banking Exchange sat down with Chief Product Officer for Finastra, Radha Suvarna, to hear what financial institutions should be thinking about in 2026 when it comes to Payments.

Is faster money movement a critical issue right now?

Yes. What we’re seeing is a fundamental shift in expectations, and in the U.S. specifically, we’re at an inflection point. With the implementation of services such as FedNow and RTP, instant settlement is no longer merely a convenience; it is becoming a competitive requirement. This matters not just for customer experience, but also for liquidity, and retention. As standards like ISO 20022 are implemented and adopted, payment data also becomes richer and more actionable, which makes the faster-funds model even more compelling.

On a practical level, faster money movement requires more than a one-off solution. Institutions need architecture that supports real-time payments across multiple rails, manages liquidity differently, and rethink back-office operations. Banks and credit unions that treat speed as an integrated capability, rather than a bolt-on, will be the ones that succeed.

What’s driving the acceleration in real-time payment adoption?

A combination of new services, mandatory compliance changes, payment hub technologies, and clear business cases is driving the acceleration. At Finastra, we have supported many of our clients to process immediate payments with the same GlobalPayPLUS payment hub that processes their high-value and mass payments. They can run ACH, wire, and real-time payments from a unified hub.

The introduction of the FedNow service alongside RTP has increased the choices for instant payment delivery, with FedNow transactions showing over 60% QoQ growth in Q2 2025. When speed is combined with richer data and more advanced routing engines, institutions see not just faster payments but also lower costs, fewer exceptions, and new product possibilities. In short, real-time payments are moving from “nice to have” to “must have.” The institutions that act early are already differentiating themselves in the marketplace.

How much has shifted to fintechs, and what does that mean for banks and credit unions?

The fintech shift is undeniable. Businesses in particular are turning to fintechs for disbursements, peer-to-peer flows and embedded payments due to their speed, agility and UX. That means financial institutions cannot afford to remain static. At Finastra, we don’t see this as a zero-sum game. Instead, the opportunity is collaboration. Financial institutions have scale, trust, regulation, and relationships. Fintechs have innovation and pace. The best strategy is for financial institutions of all sizes to modernize their payments stack through APIs, modular architectures, and open partnerships, allowing them to offer fintech-style experiences while retaining the core relationship.

Furthermore, our research indicates that mid-tier financial institutions, specifically, are well-positioned to leverage their role in business financial operations, due to their established relationships, in-depth understanding of regulatory environments, and ability to provide personalized services, which gives them distinct advantages.

If a financial institution waits, they risk being bypassed not only by fintechs but also by clients migrating to providers that offer speed, insight, and seamless settlement. The path forward is modernization, combined with ecosystem engagement, not isolation.

Beyond speed, what are other things FIs need to take into consideration regarding faster payments?

Speed is essential, but it is not sufficient on its own. Financial institutions need to consider resilience, data maturity, and unified operations. First, resilience: If a rail goes down, an institution must have fallback options, routing logic and real-time liquidity visibility. At Finastra we have developed intelligent routing modules that optimize path, cost and regulatory compliance.

Second, data and compliance need to be integral. The adoption of ISO 20022 is not just a technical exercise; it enables richer payment metadata and smarter analytics, screening, fraud detection and reconciliation.

Third, organizational architecture like ACH, wires, and real-time payments must work together, not in silos. A unified payments hub provides consistent controls, interfaces and user journeys. That means fewer exceptions, fewer manual processes and faster time to value.

If an institution focuses only on “make it faster” and ignores these other elements, it will find itself with greater risk, higher cost, inconsistent customer experience and limited competitive advantage.

What should financial institutions focus on next?

Financial institutions should focus on three strategic areas to win in the new age of payments. First, bring everything under one unified customer experience. Payments shouldn’t live in silos. ACH, wires, instant payments, even emerging methods like tokenized assets or stablecoins all need to run through a single processing hub with consistent policies.

Second, be strategic about modernization. Focus on high-value payment corridors and use agile development to move faster and see a quicker return. And finally, keep an eye on what’s next. Tokenized settlements and stablecoin-based flows are starting to move from concept to reality, and real-time cross-border payments are already taking place. The institutions preparing now will be the ones ready when that shift hits full speed.

At the end of the day, speed matters, but the real winners will be the ones that build for resilience, intelligence, and continuous innovation.