Welcome to the Global Correspondent Banking Monitor, where we round up the latest developments in cross-border payments and correspondent banking from around the world, as they happen. This month we cover the central banks' deprioritization of digital currencies, the EU mandate for bank instant payments, efforts to advance ISO 20022 adoption, Swift and Google’s enhanced cross-border payment fraud detection, and Asia’s new cross-border payment advancements and partnerships. Read on for more details, and the main takeaways for community banking institutions.
Central banks worldwide are increasingly deprioritizing central bank digital currencies (CBDCs) in favor of enhancing existing instant payment systems. According to the OMFIF Future of Payments survey, only 13% of respondents considered CBDCs the best avenue for cross-border payments, compared to 31% the year before. While CBDCs initially generated significant attention for their potential to modernize financial systems, challenges around infrastructure, privacy, and adoption have tempered enthusiasm. Instead, central banks are doubling down on existing payment frameworks that offer immediate transaction settlement and leverage existing banking infrastructure. 47% of central banks surveyed chose interlinking instant payment systems as their top choice for cross-border payments.
The pivot toward existing systems for international payments is an interesting development for community banks and credit unions, as it prioritizes improvements to frameworks they already participate in rather than introducing disruptive technologies like CBDCs. Moreover, as central banks invest in modernizing existing infrastructure, smaller financial institutions can remain active participants in the evolving payments landscape. This creates opportunities to deepen customer relationships by providing seamless, immediate payment experiences while avoiding the potential risks and costs associated with untested digital currencies. Staying informed on these advancements ensures community banks and credit unions can position themselves as leaders in payment innovation for their local markets.
To read more about faster international payments through international wire automation, read our blog:
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As of January 9, all banks and payment service providers (PSPs) within the eurozone are required to have the capability to receive instant payments, in compliance with the European Union's Instant Payments Regulation (IPR). This regulation mandates that euro-denominated funds be transferable and confirmed within 10 seconds at any time, including outside traditional business hours, across all EU member states. By October 9, 2025, these institutions must also be able to send instant payments. Additionally, the IPR stipulates that charges for instant transactions cannot exceed those applied to standard credit transfers, and PSPs must implement robust fraud detection mechanisms, including International Bank Account Number (IBAN) checks, to prevent errors and fraud.
Correspondent banking takeaways
To remain competitive and compliant, it’s important that U.S. banks have the capabilities to handle real-time Euro payments. These changes not only enable continued collaboration with European partners but also position U.S. institutions to enhance their cross-border payment offerings and maintain competitiveness in the global financial ecosystem.
Read the Fintech Consulting LLC CEO Marcia Klingensmith’s advice to community banking institutions on adopting instant payments:
The Bank for International Settlements (BIS) Committee on Payments and Market Infrastructures (CPMI) has outlined a series of actions to expedite the adoption of ISO 20022 standards for cross-border payments. These measures include maintaining harmonized data requirements until at least 2027, establishing a dedicated panel to oversee updates, and promoting global guidelines for ISO 20022 in fast payments. By fostering consistent and efficient payment data, the initiative aims to address inefficiencies and improve transparency in international transactions.
Correspondent banking takeaways
For community banks and credit unions, the widespread adoption of ISO 20022 offers significant benefits, including streamlined operations and better interoperability with global payment systems. These advancements can lead to faster and more transparent transactions, enhancing fraud detection and reducing errors and delays. Aligning with these global standards ensures banking institutions remain competitive in delivering modern, efficient cross-border payment services to their clients. Stay tuned for our upcoming ISO 20022 guide, — we’ll have practical implementation and monetization tips for community bankers.
SWIFT, the global financial messaging service, is collaborating with Google Cloud to develop advanced anti-fraud technologies utilizing federated learning, which is a way to train artificial intelligence (AI) models without others seeing your data. This initiative aims to create a secure, privacy-preserving system that enables financial institutions to share fraud-related insights without compromising proprietary data. In the first half of 2025, SWIFT plans to launch a sandbox environment with synthetic data to prototype learning from historical payment fraud, involving 12 global financial institutions. Technology partners Rhino Health and Capgemini will contribute to developing and integrating the federated learning platform.
Rachel Levi, head of artificial intelligence at Swift, says: “This exploration will help the community validate whether federated learning technology can help financial institutions stay one step ahead of bad actors through sharing of fraud labels, and in turn enabling them to provide an enhanced cross-border payments experience to their customers.”
Correspondent banking takeaways
Fraudsters attack the entire financial ecosystem, yet traditional fraud detection methods, constrained by siloed institutional data, struggle to keep up with increasingly sophisticated, multi-jurisdictional schemes. Global collaborations that bring financial institutions together to address this challenge are crucial. By leveraging innovative technology, initiatives like this can help financial institutions stay ahead of bad actors and enhance the security and trustworthiness of cross-border payments.
For more on how to beat money laundering and financial criminals like the FBI, read our profile of former FBI Chief of Financial Crime Dennis Lormel: https://acceleronbank.com/articles/anti-money-laundering
Significant advancements and partnerships have emerged in Asia recently. Among them are:
Correspondent banking takeaways
Asia continues to lead the world in payment innovations, offering a glimpse into the future of international payments. These new developments highlight the region’s ability to push the boundaries of efficiency and accessibility in cross-border transactions. For U.S. banking institutions, these developments serve as a valuable preview of emerging trends and technologies that could shape global payment systems and customer expectations.
Want to know what happened last year in cross-border payments and correspondent banking? Read our year in review:
Acceleron builds patented software that allows community banks and credit unions to conduct international payment transactions profitably through a correspondent banking marketplace. Serving over 200 financial institutions and facilitating more than $1 billion in international payments annually, Acceleron helps small banks generate non-interest income and compete more effectively with high-fee big banks. Our solutions integrate seamlessly with top payments platforms, ensuring quick implementation and smooth operation.
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