The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

They are converging around a much bigger question: how do we build a financial system that is more efficient, resilient and trusted at scale?

The issue is no longer whether these technologies matter. It is whether they can work together in production, under real-world operational and regulatory constraints.

That requires a shift in thinking. The next phase of innovation will not be defined by individual technologies, it will be defined by the operating layers that connect them: structured data, intelligent orchestration, strong governance and trusted settlement.

Structured data as the foundation

The migration to ISO 20022 is often viewed as a payments messaging programme, but its significance is much broader. It represents a shift towards data-rich financial infrastructure, where the quality, structure and governance of data become critical to resilience, compliance and customer experience.

This means the next stage of payments modernisation is not simply about standards compliance. It is about treating structured data as a strategic asset that supports both operational efficiency and effective control.

AI's role in banking operations

While much of the discussion around AI focuses on future possibilities, some of the most immediate benefits lie in everyday banking operations.

Many processes still depend on people interpreting messages, documents and alerts. Examples include payment investigations, sanctions reviews, onboarding documentation and client communications. Traditional automation tools work well for structured processes, but often struggle when information is incomplete or unstructured.

This is where AI can add value. It can help classify information, identify missing data, summarise cases, recommend actions and support more consistent decision-making. Used appropriately, AI does not replace human judgement or established controls. Instead, it reduces the burden of interpretation and coordination, ensuring specialist teams spend less time reconstructing information and more time making informed decisions.

The near-term efficiency case for AI is practical rather than revolutionary. Applied to selected operational processes, such as message interpretation, data validation, case preparation and exception triage, AI-enabled workflows could help reduce manual handling effort by around 20–40% at process level, with higher benefits possible in more repeatable activities.

For regulated financial institutions, governance remains essential. Explainability, auditability, model monitoring and human oversight are not optional considerations; they are fundamental requirements for building confidence in AI-enabled processes.

Tokenisation and the future of settlement

Tokenisation will be judged by the operational problems it solves, not the technology behind it.

As assets, deposits and financial instruments become increasingly programmable, institutions must consider the implications for settlement, liquidity and market infrastructure. The long-term potential is significant, but adoption will depend on delivering tangible benefits rather than pursuing innovation for its own sake.

The same foundations that support successful payments transformation and AI adoption will also determine the success of tokenisation: trusted data, interoperability, operational resilience and clear regulatory engagement.

Making innovation work through integration

The common thread across payments modernisation, AI and tokenisation is not technology. It is integration. The industry has spent the last decade proving what these technologies can do. The next step is making them work together.

Structured data helps institutions understand what is happening. AI can help interpret that information and support decisions at scale. Tokenisation may create new possibilities for how assets and value move through the financial system. Each has value on its own, but the bigger opportunity comes when they are brought together to deliver measurable operational benefits.

New technology does not automatically create better outcomes. Success will depend on how well organisations embed these capabilities within existing governance, risk and operational frameworks, while maintaining the trust that underpins financial services. It will be about proving that they can work together, safely and at scale.