Payment trends: risks and opportunities

Thank you, Saiqa Anne Qureshi, for providing this insightful summary of events

On March 25, 2025, Bain & Co. hosted an in person and zoom simulcast panel regarding payment trends, risks and opportunities, featuring facilitator Erin McCune of Bain & Co, with Lisa Shields of FISPAN, Marg Riley of the Federal Reserve SF, Rachel Pike of Modern Treasury, Kalyeni Iyer of SardineAI, and Veronica Fernandez of Visa. 

They had a robust discussion covering updates in payment, and the impact of fintech and innovation. Veronica Fernandez from Visa spoke to the need for innovation from issuers and the imbalance, at times, for traditional banks to have the same appetite. Marg Riley from the Federal Reserve Bank in San Francisco highlighted that it was key that innovators be prepared for opportunities to come up, and that tended to be parties that had the right technology to leverage and low debt.

Key to the discussion was the need to consider and engage compliance at the same time, and not in a “catch up” mode as in previous situations regarding innovation. That approach is no longer palatable to the consumer. There is a shift from the traditional roles of having a payment person, knowing the SWIFT and ACH files that were reconciled daily or proccing via an intermediary bank, to the evolution that will occur over the next 24-36 months.

The final big focus of discussion was online scams including increases in romance scams, in combination with or separate from scams of the elderly. With the simultaneous rapid aging of the population and the improvement in “e-fakes,” there is a potent combination for an increase in these scams, including in the onboarding of individuals for new forms of credit. AI is being used to rapidly consider transactions against a risk score, to try to avoid people being abused or taken advantage of. The panel agreed that these scams with increased sophistication are the biggest real threat, and that prevention is key.

Key Panel Themes:

(provided by facilitator, Erin McClune)

• First-Party Fraud & Scams are Rising: Fraud is no longer just faceless hackers—scams are more personal and psychological, tap into "FOMO" at times, and vary from romance scams to elder exploitation. The industry is responding with better behavioral detection and proactive tools, but we could all benefit from better training and knowledge sharing.
• AI Is Revolutionizing Risk Management: AI and machine learning are shifting fraud detection from reactive to predictive, enabling real-time risk scoring and smarter fraud prevention at scale.
• Partnerships are the New Superpower: Banks and fintechs are joining forces. Traditional institutions provide stability and reach, while fintechs bring agility and innovation—together, they accelerate growth 
  and security. Ledgers and transparency are key to making this happen.
• Perception vs. Reality in a Rapidly Evolving Regulatory Landscape: Regulations and enforcement may seem more relaxed, whereas others perceive that rules are finally catching up on technology; however, while regulatory enforcement may appear to be softening, the reality is more nuanced—fintechs and banks alike must remain vigilant.
• AI Is Not Just Smart—It’s Strategic: GenAI and intelligent agents are already transforming the back office. Future finance teams will leverage AI to optimize working capital, manage payables, and make informed cash flow decisions.
• Friction Isn’t Always Bad: While seamless is ideal, some friction (like two-factor authentication or transaction reviews) is necessary to prevent fraud and protect users—especially in real-time payments.
• The Future Demands Data Sharing & Industry Collaboration: Fraudsters are evolving fast. Industry-wide consortiums, data sharing, and open standards (including non-card payments) are essential to stay one step ahead. The panel emphasized the importance of sharing behavioral risk data across platforms to better detect and prevent fraud before it happens.

Despite the challenge of keeping up with fast moving payment industry developments, the panel ended on an energetic and optimistic tone. These women leaders are not just innovating—they’re deeply committed to collaboration, consumer safety, and building a smarter, more inclusive financial ecosystem.

 

   

From Connections Newsletter (Past Event Highlights): April 2025