Ink and Intellect, The TCS BaNCS Research Journal #16
On many things financial services and AI
Industry
Banking
Banking Services Transformation: Unlocking Exponential Value
Capital Markets
Unlocking Exponential Future Growth in Capital Market Firms
Products & Platforms
TCS BaNCS™
TCS BaNCS™: Enabling Transformation in Banks and Financial Institutions
Highlights
- This edition of TCS BaNCS Research Journal features the role of—and advancements in—AI in financial services, to explorations in cross-border payments, embedded finance, ISO 20022 and what intelligence really means from a core banking perspective.
- With the deadlines for T+1 in Europe looming and the compression of settlements to T+0 on the horizon, what kind of opportunities does technology offer to more than merely meet the regulatory landscape?
- AI possibilities from a TCS BaNCS lens, with the objective of bringing impetus that translates into not just ROI but also real purpose.
Future of Finance
Welcome to the latest edition of the TCS BaNCS Research Journal for Securities and Banking.
We see writing instruments, physical or digital, as a tool of transformation, a bridge between ideas and action, tradition and technology.
This edition features writing of various hues. Topics range from the role of—and advancements in—AI in financial services, to explorations in cross-border payments, embedded finance, ISO 20022 and what intelligence really means from a core banking perspective.
With the deadlines for T+1 in Europe looming and the compression of settlements to T+0 on the horizon, what kind of opportunities does technology offer to more than merely meet the diktat? Our contributors share prescriptive views, grounded in the experience of working closely with financial institutions, each insight a deliberate stroke on the canvas of progress.
Getting back to the much spoken about topic of AI, we take you through its possibilities from a TCS BaNCS lens, with the objective of bringing meaning to all this. Meaning that translates into not just ROI but also real purpose.
Thanks for reading and being part of our community.
Let’s continue to share views and thoughts, and stay up to date, as we build a human-powered, AI-advisory world.
Leadership Viewpoint
The financial services industry stands at an important and strategic juncture. Various aspects of our customers’ business and value delivery chains are getting disrupted in fundamental ways, and technology stands at the center of it all. The challenge for industry leaders is clear: drive innovation, ensure governance, and build resilient, trusted organizations that can thrive in a rapidly changing landscape.
AI Revolution
Steering your firm through the AI revolution.
This article explores the key leadership challenges posed by the rise of AI in European banking, including strategic alignment, cultural transformation, workforce reskilling, ethics and trust, regulatory complexity, and cross-functional collaboration.
Payment Hubs
The intelligence revolution: How GenAI and agentic systems are redefining enterprise payment hubs.
Enterprise payment hubs (EPH) stand as the unsung heroes of the financial ecosystem—silently orchestrating millions of transactions daily, from your morning coffee purchase to billion-dollar corporate transfers.
This article shares insights from the impacts that AI-led evolution can have on the payment processing value chain.
Cross Border Payments
Cross border payments – drivers, evolution, multiple rails and interoperability.
The backbone of cross-border payments is a correspondent banking network connected by SWIFT, which acts as the traditional infrastructure for international financial payment transactions. This article explores the key drivers, evolving technologies, multiple payment rails, and the critical role of interoperability shaping the future of global money transfers.
Embedded Finance
Embedded finance – how are corporation evolving?
Embedded finance offerings for retail customers are well known: Buy now pay later (BNPL), embedded payments like Google Pay, Apple Pay, retail branded cards and financing, embedded insurance, loyalty and rewards program or wallets. Embedded finance in the retail business is experienced as an enabler to improve customer experience and open new business opportunities and revenue streams. What about embedded finance for corporate customers?
Monetizing ISO 20022
Monetize on ISO 20022 – build the basis.
Central payment mechanisms like SEPA have forced payment chain participants to adopt their release schedule. The coexistence of old and new payment formats during transition phases will soon be phased out– the predominant example is the retirement of the old SWIFT MT-formats in November 2025.
Implementing ISO 20022 would not be done if it did not have benefits and huge potential down the road. This article explores the benefits along with how to leverage the potential of ISO 20022 and stay ahead of the game or at least being an early adopter in the payment industry.
Human Centric AI
Harnessing AI for Human Centric Engagement in Financial Services
In financial services, the true power of AI is not in faster decisions, but in more meaningful ones. When intelligence is applied with empathy, transparency, and integrity, every engagement becomes an opportunity to deepen trust. The leaders of tomorrow will be those who fuse technology with a human touch — using AI not just to predict outcomes, but to shape lasting relationships and sustainable growth. This article explores the road ahead: AI Decisioning, Agentic AI, and Generative AI as Core Engines.
AI bias and mitigation
Bias in Artificial Intelligence and Mitigation Strategies
The significant advancements in applying artificial intelligence (AI) to various domains have raised concerns about the fairness and bias of AI systems. Drawing the line between using AI for decision making and avoiding accusations of bias requires a combination of transparency, fairness, and accountability. We look at the various aspects of bias and how they can be mitigated by choice of appropriate strategies to overcome each of them.
AI in Asset Servicing
Leveraging AI in asset servicing operations.
In recent decades, leading financial institutions have poured considerable resources into transforming their asset servicing operations. Their focus has spanned everything from technological modernization and bolstering straight through processing (STP) rates to tightening risk and control frameworks. Over the past few years, AI has ushered in a transformative shift in the outlook for corporate actions. Purpose-built models now open new horizons, offering fresh opportunities to reimagine efficiency. This articles talks about a spectrum of innovative use cases leveraging AI, each with the potential to reshape the landscape of asset servicing.
EU & UK T+1 Roadmap
An analysis of the EU and UK T+1 roadmaps for post-trade securities settlement.
With the 30 June 2025 publication of the high-level roadmap for T+1 securities settlement in the EU by the European T+1 industry committee, momentum is now gathering pace as industry participants mobilize their collective efforts towards the adoption of a T+1 settlement cycle. This article explores the key themes and how does the roadmap aim to achieve its T+1 settlement objectives; what market participants should do, and what are the key operational similarities and differences between the EU Roadmap and the UK Accelerated Settlement Taskforce (AST) Roadmap.
T+1 Transition by 2027
Are you ready? Transition to the T+1 settlement cycle by 2027 in Europe.
The European Securities and Market Authority (ESMA), the regulatory body overseeing capital markets, has suggested that Europe transition to a T+1 settlement cycle by 11 October 2027. How will this pan-European transition be implemented? Is it influenced by the approach adopted by the US markets? Additionally, what measures need to be undertaken by pan-European financial institutions and market participants to prepare for this change?
T+1 & Corporate Actions
T+1 Settlement in the UK and EU: Impact on Corporate Actions
Even as the UK, Europe, and Switzerland prepare to move to the T+1 settlement cycle by October 2027, hugely impacting settlement processing, there needs to be a considered thinking around what this means for corporate action processing. If we look back at the US T+1 transition, there were a lot of unknowns leading up to it, at least from a corporate action perspective. With October 11, 2027, two and half years away, prepare for the impact of T+1 on corporate action processing.
T+0 & Technology Opportunities
Opportunities with technology as we compress settlements towards T+0
Although many firms have viewed the migration to T+1 as a further compression of an existing tried and tested model, the models for T+0 will need a far more radical change in approach and far wider use of different technological tools. The fact that regulators and markets are actively considering the merits and viability of T+0 is in part down to progress that has been made with underlying technologies and applications – including use of cloud, development of APIs, the growing use of AI and ML and the expanded use of data parameterization to drive real-time analytical engines. There are three core models that industry groups are considering for T+0.
Clearing Rule
How does the new treasury clearing rule affect custodians and buyside participants?
The Securities and Exchange Commission of the USA (SEC) has approved a new rule requiring most of the US treasury securities transactions, including repos, reverse repos and tri-party repo to be cleared through a central clearing agency (CCA). Currently the Fixed Income Clearing Corporation (FICC) is the main CCA utilized for treasury clearing and netting. Other CCAs are entering the market as alternatives to FICC such as ICE Credit Clear (ICC) and the Chicago Mercantile Exchange (CME). Although most of the material spoken and published has been focused on the sell side, there are significant implications and changes associated with buy side transactions. This article explains how it affects custodians and buy-side participants.
Banking Intelligence
Redefining banking intelligence.
A fully agentic AI-driven bank operating platform represents a shift in how banks think about their technology foundations. It goes far beyond managing transactions. Banks of all sizes and types—legacy, digital, and embedded— can now create, launch, and refine their entire banking experience from the ground up. This isn’t just another core banking system; it’s a dynamic, living operating system that adapts and evolves with your needs. This article breaks down what makes ABOS such a compelling solution and why it matters for the future.
Bank Branch Cash Handling
Understanding cash handling operations in a bank branch
Cash handling is one of the most critical operations in any bank branch, ensuring the smooth flow of funds to support day-to-day customer transactions. This article shares a simplified overview of how cash is managed within a branch.