Following the popular session on building the future of banking at Sibos 2024, Megha Kansal from McKinsey moderated a follow-up discussion on recent developments in Frankfurt.
The panel featured Toby Brown from Google Cloud, Victoria Cleland from the Bank of England, Debopama Sen from Citi, Raj Seshadri from Mastercard, and Patricia Sullivan from Deutsche Bank. Key topics of discussion included advancements in AI and cloud technology, innovation and competition, as well as stablecoins and blockchain.
### AI and Cloud
From 2024 to 2025, AI applications have evolved from generative AI to agentic AI. Brown pointed out that while skepticism around AI’s benefits has grown, their Google Cloud AI benchmarking survey reveals that financial institutions are increasingly building the capabilities to operationalize and scale AI. Over 50% of surveyed organizations have deployed AI agents, with 30-50% experiencing returns on investment from these implementations. Brown emphasized that success hinges on establishing a high-quality data foundation, stating, “Those who can weave data and AI tightly together will be best positioned for success.”
Sen highlighted three crucial elements for achieving resilient and scalable AI while ensuring a seamless customer experience at Citi:
1. Maintaining a unified data source across payment services, mindful of local regulations, to process data on-site and only share insights and anonymized data.
2. Ensuring AI portability through multiple providers and a centralized API integration for complex models as well as containerization tools for simpler models.
3. Automating cloud deployment to facilitate rapid execution while incorporating appropriate safeguards for complexity.
### Innovation and Competition
In the past year, tokenization has gained traction with applications expanding. Cleland explained how the Bank of England balances innovation with the caution necessary for a central bank, noting its role as both a regulator and operator. “As a central bank, we’re creating something that is critical national infrastructure,” she stressed, highlighting the need for accuracy in this crucial area for financial stability.
Despite these precautions, the push for innovation continues. Cleland cited examples like the new RTGS system that allows participants to utilize distributed ledger technology and experiments using FX synchronization for better cross-border payments. “Our new RTGS system is modular, allowing for quick adaptation to changes,” she explained.
From Deutsche Bank’s perspective, Sullivan outlined three timeless principles guiding innovation:
1. Building an ecosystem of trust with stakeholders and clients.
2. Treating data as a form of intelligence.
3. Innovating with integrity.
Sullivan elaborated on the potential of leveraging vast data resources, using AI to analyze elements such as tariffs affecting client supply chains, providing actionable insights.
Brown emphasized that Google Cloud aims to furnish institutions with a finance-grade platform that fosters rather than disrupts innovation.
### Stablecoin and Blockchain
The panel then explored stablecoins and blockchain, with Seshadri describing stablecoins as a new form of currency from Mastercard’s viewpoint. He noted their potential to expand market outreach and enhance collaborations as regulatory frameworks develop, thereby providing clarity.
Kansal queried Sen about how banks can maintain relevance amid the rapid transactions enabled by blockchain. Sen responded that similar conversations arose during the emergence of digital wallets, ultimately revealing opportunities for integration. She referenced Citi’s recent announcement of integrating its blockchain platform with its 24/7 USD Clearing solution.
Cleland added that the Bank of England is considering several angles from a central bank standpoint, including enabling stablecoins and connecting them to RTGS systems. The bank is also conducting a DLT innovation challenge to explore the use of wholesale central bank money on programmable ledgers.
In conclusion, the panel unanimously agreed on the importance of collaboration, co-creation, and maintaining interoperability between humans and technology, especially AI. They underscored the need for a workforce equipped to navigate the landscape of rapid innovations, focusing on achieving tangible outcomes.