Commercial Banking is at a pivotal moment as we head into the second quarter of 2025. Disruptive technologies like Generative AI and Tokenization are colliding with centuries-old mainframe infrastructures and brand-new compliance frameworks. Meanwhile, real-time payments are quickly becoming the baseline for business transactions.
In this in-depth exploration, we’ll look at the top five trends shaping Commercial Banking this year:
Attendees at Finovate 2025 in London felt an unmistakable sense of urgency. Banks in Europe, the US, Canada, the Middle East, Australia, and beyond are no longer simply “talking” about digital transformation, they’re living it. That means grappling with new technologies like Generative AI, advanced digital asset models like Tokenization, the push for Real-Time Payments, and the monumental task of Mainframe Modernization. Layer on top the latest wave of global compliance regulations, and you get a very dynamic, and sometimes challenging, environment.
But here’s the good news: Each of these trends when approached smartly can help commercial banks shore up their four key revenue drivers:
while also delivering unmatched experiences to their business clients.
At the core, AI is no longer about just cost-cutting or chatbots. It’s the gateway to hyper-personalized corporate banking experiences from pinpointing hedging opportunities to intelligently reconciling cross-border payments.
Generative AI refers to advanced machine learning models (like GPT variants) capable of creating new content text, images, even video and of analyzing large data sets to predict trends or patterns.
In the banking context, this may include AI that auto-generates risk assessments, customer onboarding checks, or even personalized FX hedging strategies for corporate clients.
1) Predictive Analytics: Banks can anticipate corporate clients’ borrowing or hedging needs by analyzing transaction histories, market data, and forward-looking indicators.
2) Smart Workflow Automation: From compliance checks (KYC/AML) to invoice reconciliation, AI can drastically reduce manual overhead and error rates.
3) Customer Engagement: Chatbot-like front ends for commercial customers can create real-time recommendations for example alerting a CFO to an unexpected liquidity shortfall.
1) Greater Fee Income: Offering advanced forecasting services or auto-hedging solutions can open new revenue streams.
2) Reduced Credit Risk: AI-based underwriting or risk scoring can enhance asset quality by flagging high-risk scenarios earlier.
3) Higher Operational Efficiency: Less time spent on repetitive tasks frees up relationship managers and IT teams to focus on strategic goals.
Tokenization used to be a buzzword around crypto. Now it’s a potential game-changer for cross-border payments, trade finance, and even real-time settlement of large corporate invoices.
Tokenization is the process of representing real-world assets (invoices, securities, commodities, or other financial instruments) as digital tokens on a blockchain or distributed ledger. This drastically improves settlement speed, transparency, and liquidity.
1) Faster Settlements: Instead of a 2-3 day clearing cycle, tokenized transactions can finalize in minutes or seconds.
2) Fractional Ownership: Banks could potentially let corporate clients “fractionally own” or trade large illiquid assets, like trade receivables or real estate, opening new cross-sell opportunities.
3) Automated Compliance: Smart contracts can embed rules to handle settlement finality, compliance triggers, or tax obligations without manual intervention.
1) Fee Generation: Early-mover advantage in tokenized value transfer can lead to new lines of revenue.
2) Operational Efficiency: With shared ledgers, banks and clients both see real-time data; no more reconciling mismatched spreadsheets.
3) Competitive Differentiation: Providing a safe, regulated environment for digital assets can position a bank as a forward-thinking leader among corporate clients who want a frictionless global trade experience.
Real-Time Payments is no longer ‘nice to have.’ For corporate clients, especially those managing global supply chains, instant settlement is an engine for better liquidity control.
Real-Time Payments (RTP) infrastructures like FedNow in the United States or TIPS in Europe enable immediate or near-immediate settlement of transactions, 24/7, 365 days a year.
1) Corporate Portals: Through APIs, banks connect to local real-time clearinghouses, letting clients process urgent vendor payments or payroll disbursements instantly.
2) Integrated Liquidity Management: Combine real-time transaction data with advanced forecasting to improve a company’s working capital management.
3) Enhanced Transparency: RTP rails often come with robust tracking and status updates, reducing disputes over “lost wires” or unconfirmed receipts.
1) Boost in Fee Revenues: Some banks roll out premium, value-added RTP solutions (like extended backup lines of credit or faster crediting) that earn extra fees.
2) Customer Retention: If you can’t offer instant or near-instant settlement, your largest clients may shop around for more agile banking partners.
3) Reduced Credit Risk: Real-time settlement can lower counterparty exposure, which helps overall asset quality.
Modernizing a mainframe isn’t about ripping out the old on Day 1. It’s about carefully layering on cloud services that let banks deliver new digital experiences faster, without losing the reliability of their core system.
Mainframe Modernization is the process of transitioning legacy COBOL-based or other mainframe-centric infrastructures to more agile, often cloud-compatible, architectures. It might involve containers, microservices, or partial re-platforming.
1) Gradual Refactoring: Instead of rewriting everything at once, banks can replace modules bit by bit, ensuring the main ledger remains stable.
2) API Enablement: Exposing mainframe data via modern APIs allows third-party fintech solutions (like TreasurUp) to plug into core processes.
3) Hybrid Cloud: Some data stays on-premises for compliance, but real-time transaction or customer experience layers might sit in the cloud, speeding up deployment.
1) Speed to Market: A modern architecture can cut months off the development cycle for new banking products like an AI-driven cash management tool or a new tokenization pilot.
2) Cost Reduction: Legacy systems are expensive to maintain, especially as older IT staff retire. A modern approach can significantly reduce operating costs.
3) Enhanced Customer Experience: Modernization is a gateway to real-time services, better analytics, and fluid digital channels, which in turn drive client retention and revenue.
Handling multiple regulatory frameworks, DORA in Europe, local APAC compliance, or U.S. Federal laws can’t just be a side note. It’s now a differentiator if your bank can scale compliance globally without stumbling.
Global Compliance means meeting a host of newly emerging and evolving regulatory mandates, from the Digital Operational Resilience Act (DORA) in Europe, to eIDAS for digital signatures, FiDA for data portability, and region-specific guidelines in Asia or the Middle East.
1) Unified Regulatory Strategy: Banks must align local compliance teams with a broader global governance framework so that new product rollouts can scale without rework.
2) Increased Reporting & Auditing: Real-time or near-real-time reporting obligations are part of the new wave of digital finance laws.
3) Vendor Compliance: Third-party fintech or insurtech providers must also comply with bank-grade security standards. Joint audits and rigorous SLAs are crucial.
1) Mitigation of Legal & Financial Risks: Non-compliance can lead to fines or reputational damage.
2) Holistic Customer Trust: Corporate clients want a bank that knows how to handle data privacy, cross-border rules, and security without friction.
3) Faster Global Expansion: A compliance-savvy bank can more confidently roll out new services in multiple jurisdictions, tapping new growth opportunities.
If Finovate 2025 taught us anything, it’s that “business as usual” in commercial banking no longer cuts it. Corporate treasurers and CFOs demand swift, data-rich, and globally compliant solutions.
At TreasurUp, we believe banks should never stop innovating. Our mission is to deliver solutions that elevate top-line revenue, delight business clients and give you a competitive edge.
Schedule a Workshop Now: Our experts will partner with your bank to co-create the future of digital commercial banking.