Community Banking Champions: Leila Aghabarari, Ph.D., Global Economist

A global economist’s take on the future of community banking and where to find opportunities.

She’s made her mark as an economist and researcher who has worked with the IMF, World Bank, Brazil’s Central Bank, and the UN Refugee Agency. Leila Aghabarari focuses on measuring the impact of financial investments around the globe. Her Ph.D. thesis focused on credit unions and other community-banking finance models. With deep expertise in financial markets and a passion for technology’s role in driving inclusion, Leila brings a uniquely global and grounded perspective to the future of community banking.

We caught up with her to talk about how community financial institutions can navigate the current volatility of international payments and what she sees as key to financial resilience in the future.

How did you come to be an economist and end up working at the World Bank?

It was a dream I had since I was an undergrad. Growing up in Iran, I didn’t know anyone, man or woman, who worked at an international financial institution. But I loved math and economics and decided to pursue them further. I earned two master’s degrees and a Ph.D. in Europe, studying in Paris, Barcelona, Milan, the Netherlands, and Switzerland. Eventually, I landed in Washington, D.C., first as an intern at the IMF, then as an economist at the World Bank Group.

You also have a background as an entrepreneur?

While still in college, I co-founded a startup in industrial automation. It became quite successful, but I had to leave when I moved abroad. Still, that entrepreneurial spirit has never left me. My dream is to return to entrepreneurship, but this time in fintech, to build solutions in the space where I work now.

You’re a passionate advocate for community banking. Why?

My Ph.D. focused on credit unions. From that work, I realized they perform exceptionally well during times of crisis. They offer a kind of insurance, not just financially, but emotionally, to their members. The structure itself is resilient: members are both lenders and borrowers, so there's a built-in community accountability. I truly believe we need more of these institutions in our financial system.

How should community banks and credit unions respond to the economic uncertainty around tariffs, geopolitical risk, and possible recession?

They're in a tough spot. Their client base, individuals and small or medium-sized enterprises, is the first to feel the pressure in times of volatility.  That's why technology partnerships are critical. Fintechs can help them expand services, lower costs and improve resiliency. Larger institutions already have the infrastructure. Community banks and credit unions need to catch up quickly.

How do you see international payments evolving—and what should smaller institutions be doing?

There’s massive growth ahead. While overall global payments revenue may be slowing, international payments are expected to grow from $1.8 trillion in 2023 to $2.3 trillion by 2028. Marketplace payouts and cross-border B2B are driving that growth. To compete, community banks and credit unions should leverage low-cost, real-time foreign exchange settlements and plug into the ISO 20022 ecosystem.

White-label providers can now enable even small U.S. institutions to keep those flows in-house without needing to outsource everything to the big banks.

What kinds of fintech tools are most important right now?

In the short and medium term, a few technologies come to mind:

• Low-code orchestration layers: One of the most practical solutions for community banks and credit unions is adopting low-code orchestration layers. These tools integrate with existing systems like Swift GPI, Visa B2B Connect, Ripplenet, or a bank core system, allowing institutions to reroute payments based on speed or cost without needing to overhaul their core infrastructure. In my view, low-code platforms offer the most immediate opportunity for smaller institutions to stay competitive.
• Digital identity platforms (eKYC): especially for underserved populations like immigrants and refugees. As remittances grow, this will be a crucial area where community institutions can lead.

Read about Acceleron's low-code software integration with Fiserv Payments Exchange: 

 

Acceleron Announces Partnership With Fiserv to Deliver Seamless Foreign Exchange Services

There’s a lot of buzz around blockchain and stablecoins. What’s your take?

I see blockchain and stablecoins as complementary, not replacements, at least not in the short term. There are still scalability, UX, and regulatory hurdles. However, the orchestration layers I mentioned offer a very practical path forward for smaller institutions.

If there’s one step community banks and credit unions should take right now, what is it?

Go digital. Fully. We need to see more all-digital community institutions. Without taking that first step, they won’t be able to identify the opportunities or challenges that lie ahead, especially when it comes to regulation, risk, or infrastructure differences with large commercial banks. The future of finance is digital, and community institutions need to take that leap to remain relevant.

Some say community institutions won’t survive the fintech wave. Why do you think the opposite?

Because they occupy the “middle path.” DeFi emerged as a reaction to mistrust in centralized systems, but it has its own issues. Credit unions offer something unique: decentralization with accountability. Members are the owners, lenders, and borrowers. They vote. It’s a participatory model that’s both time-tested and aligned with the values behind decentralization.

In a world of uncertainty, that’s a structure we can build on, not replace.

Acceleron builds patented software that allows community banks and credit unions to conduct cross-border payment transactions profitably through a foreign exchange marketplace and currency conversion tool. Serving over 200 financial institutions and facilitating more than $1 billion in international payments annually, Acceleron Bank helps small banks generate non-interest income and compete more effectively with big banks. Our digital correspondent banking solutions and international payments automation integrate seamlessly with Fiserv Payments Exchange and other leading payments platforms, ensuring quick API integration for banks.  

Read about Acceleron's partnership with Service Credit Union:

 

Future of Community Banking: Service Credit Union

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