Settlement cycles stretch across hours, sometimes days. Systems reconcile data after the fact. Liquidity gets locked in transit. And behind it all, multiple ledgers attempt to reflect the same transaction, often requiring layers of verification to confirm what should already be known.

For decades, this worked. It was reliable, regulated, and predictable. But now, that model is being quietly challenged, not by disruption at the edges, but by a structural rethink of how money itself should move.

Financial institutions are beginning to explore something that, until recently, sat firmly in the realm of experimentation: tokenised cash and programmable money. What started as a blockchain curiosity is now evolving into a serious attempt to redesign the underlying rails of finance.

And unlike past waves of innovation, this one is not being driven solely by startups or crypto-native firms. It’s being built from within the system itself.

Why now? A system under pressure

The timing is not accidental. Across the financial ecosystem, pressure has been building. Transaction volumes are increasing. Markets are becoming more interconnected. And expectations around speed driven by digital platforms in every other industry are starting to reshape what institutions consider acceptable.

Anil Thapa, a fintech expert and data analyst based in Manchester, sees this shift emerging from a fundamental mismatch between infrastructure and demand.

“A lot of the current infrastructure is still built around older assumptions. Separate ledgers, delayed updates, and manual reconciliation between parties. That works, but it creates inefficiencies that become more obvious as transaction volumes increase and as markets demand faster execution,” he told International Finance.

At its core, the issue is not just speed: it’s duplication.

Financial institutions often end up keeping their own versions of the same data, only matching things up after the transaction is done. It’s built that way for trust, but it does slow things down.

Tokenised cash offers a different approach. Instead of each participant maintaining its own record, transactions can exist on a shared ledger, visible and verifiable in real time.

“Instead of each participant maintaining its own ledger and then reconciling later, everyone is effectively looking at the same state in real time. From a data perspective, that’s a big shift; it improves transparency, reduces duplication, and makes audit trails much cleaner,” Thapa explains.

That shift from fragmented records to a shared source of truth is one of the key forces driving institutional interest.

From concept to implementation

What makes this moment different from earlier blockchain experiments is that the conversation has moved beyond theory.

Emma Landriault, Executive Director working on JPM Coin at JPMorgan, describes a growing demand from institutional clients, not for abstract innovation, but for practical, integrated solutions.

“We see growing interest from large institutional players who want more native on-chain cash solutions from pre-eminent and reputed financial institutions. These institutions typically participate actively in both crypto and real-world asset digital transactions, which is why native on-chain deposit-based cash solutions fit well with their needs,” she told International Finance.

In other words, the infrastructure around digital assets is expanding, but without a corresponding form of digital cash, the system remains incomplete. Tokenised deposits aim to fill that gap.

Unlike stablecoins, which are typically issued by non-banks and backed by separate reserves, deposit tokens are tied directly to regular bank deposits. They operate within the same regulatory and liquidity rules as regular banking, which makes them familiar and easier for institutions to use as part of their everyday financial operations.

“A deposit token is a digital representation of a bank deposit that operates on blockchain networks, designed for institutional use cases. Institutional clients can treat deposit tokens in the same way they would treat a traditional bank deposit on their balance sheet,” Landriault explains.

That distinction matters. It means tokenised cash is not positioned as a replacement for existing systems, but as an extension, one that integrates with treasury management, accounting, and liquidity frameworks already in place.

Who is already using tokenised cash?

Several large financial institutions have already started testing, and in some cases using, tokenised cash in real-world settings.

So far, the push has mostly come from big global banks, especially on the institutional side. Use cases are showing up in areas such as cross-border payments, treasury operations, and digital asset transactions.

For instance, platforms such as JPM Coin are being used by institutional clients to move money between corporate accounts more efficiently, cutting down the time it takes to settle transactions.

This hasn’t happened overnight. The groundwork has been there for a while, but it’s really only in the last few years that things have started to pick up pace. What used to be small pilot projects are gradually turning into something more real, as the tech improves and institutions get more comfortable using tokenised cash.

The response has been fairly steady. On the inside, teams working with these systems are already noticing improvements – less time spent on reconciliation, better visibility into transactions.

For clients, particularly large ones, the appeal is straightforward: faster settlement, more control over liquidity, and the ability to plug into existing systems without having to overhaul everything.

That said, adoption is still cautious. Most institutions aren’t replacing their current systems just yet. They’re running these alongside what they already have.

Efficiency beyond speed

Much of the conversation around tokenised money focuses on speed, faster payments, instant settlement, and real-time transfers. But the more meaningful impact may lie elsewhere in how capital is used.

“In traditional systems, settlement delays mean capital is often tied up for a period of time, even after a transaction is agreed. That creates inefficiency, especially at scale,” Thapa notes.

When transactions settle instantly, capital is no longer stuck in limbo. It can be redeployed immediately, improving liquidity and reducing risk.

There’s also the question of certainty. In today’s systems, the completion of a transaction often involves multiple stages, execution, clearing, and settlement, each introducing potential delays or points of failure. Tokenised systems collapse those stages into a single, atomic process.

“Tokenised money allows transactions to settle almost instantly, and more importantly, allows both sides of a transaction to complete simultaneously. That removes a lot of the uncertainty and risk that exists today,” Thapa noted.

For institutions operating at scale, those incremental efficiencies add up. They reduce the need for intermediaries, simplify post-trade processes, and eliminate much of the operational overhead tied to reconciliation.

When finance stops sleeping

If tokenised cash really takes hold, it could start to quietly change how markets function day to day.

Today, financial systems are structured around time, trading hours, settlement windows, and batch processing cycles. Even in an increasingly digital world, these constraints remain. But programmable, tokenised money introduces the possibility of continuous operation.

“Do you see programmable money enabling truly 24/7 financial markets?” is no longer a hypothetical question; it’s becoming a design consideration.

Thapa believes the implications could be significant.

“When settlement becomes instant, and systems operate continuously, the delay between decision and execution effectively disappears. That should improve liquidity, since capital is no longer sitting idle waiting for settlement,” he added.

At the same time, continuous markets introduce new dynamics.

Faster reactions can improve efficiency, but they can also amplify volatility. Without natural pauses in the system, markets may become more sensitive to real-time information.

“There’s also a structural shift for institutions. Many existing processes are built around defined operating hours. Moving to a 24/7 model requires a different approach to liquidity management, risk monitoring, and even staffing,” Thapa said.

Programmability: The real shift

While tokenisation improves infrastructure, programmability changes behaviour. Money, in this setup, isn’t just sitting idle anymore; it can actually “do” things, carrying instructions and acting on them when certain conditions are met.

So a payment might go through the moment a contract is fulfilled, collateral can shift on its own, and liquidity can move depending on what’s happening in the market.

“Yes, and I think this is where things start to get really interesting. Transactions are no longer just instructions; they can carry conditions and logic,” Thapa noted.

When combined with data and artificial intelligence, the implications expand further. Over time, these systems may move beyond fixed rules and start adjusting on their own, reacting to changes as they happen.

“Over time, I expect this to evolve into more autonomous systems where both execution and decision-making become increasingly automated,” he emphasised.

This is where the idea of ‘programmable money’ begins to feel less like infrastructure and more like an operating layer for financial activity.

Risks in a code-driven system

With that shift comes a different kind of risk. Traditional financial systems are built to manage delays, human errors, and operational inefficiencies. Programmable systems introduce new vulnerabilities, ones tied to code, data, and automation.

“The nature of risk changes quite a bit. Instead of dealing mainly with delays or manual errors, the focus shifts to system design, code quality, and data reliability,” Thapa said.

Smart contracts, once deployed, execute automatically and often irreversibly. A flaw in logic can scale quickly, with consequences that are difficult to unwind.

Then there is the question of how reliable the data actually is. These systems depend on outside inputs to make decisions, and if that data is wrong or tampered with, the results can go off track just as quickly.

Add AI into the mix, and things get more complicated. Questions around model behaviour, transparency, and whether decisions still reflect what’s happening in the real world start to matter a lot more. The emphasis, as Thapa puts it, shifts toward proactive risk management, testing, validation, and continuous monitoring.

Bridging old and new

Despite the momentum, tokenised finance is unlikely to replace existing systems overnight. In fact, the near-term reality is more hybrid than transformative.

“Tokenised financial infrastructure is no longer theoretical. However, parallel financial infrastructure will co-exist for years to come,” Landriault said.

Legacy systems are deeply embedded, and institutions cannot simply abandon them. Instead, the focus is on integration, connecting new technologies with existing frameworks.

“Scalable, institutional-grade capabilities will be the result of incremental adaptation over the years ahead, rather than overnight transformation,” she added.

This gradual approach reflects both technical and regulatory realities.

One of the bigger hurdles is still getting different systems to talk to each other smoothly. Rules and regulations are also catching up, trying to make sense of new forms of money. And for institutions, there’s the added task of investing in the kind of infrastructure that can actually connect all of this.

As Thapa puts it, the system is “progressing, but not fully there yet.”

A layer, not a replacement

One of the more persistent misconceptions around tokenised money is that it represents a break from traditional finance. In practice, it looks more like an evolution.

“I tend to see it more as an evolution of financial infrastructure rather than a completely new concept. Most institutional work in this space is focused on improving existing systems using tokenisation, not replacing them,” Thapa added.

That distinction is important.

Tokenised cash is not coming up on its own; it is growing alongside things like CBDCs, stablecoins, and the systems already in place today, each serving its own purpose. Over time, these pieces could start fitting together, shaping a more connected and flexible financial system.

The post Why the way money moves is being rethought appeared first on International Finance.

Jaivinder Singh Gill, who has more than 25 years of experience in management roles, has constantly highlighted the rapid evolution of banking technology. He currently holds the position of Regional Vice President and Managing Director for Asia Pacific, the Middle East, and Africa at Diebold Nixdorf.

He is deeply involved in promoting digital transformation for financial institutions, enhancing security and reliability for clients. Jaivinder Singh Gill has played an important role in expanding Diebold Nixdorf’s business by introducing advanced banking technologies and managing the smooth integration of operations, including the successful implementation of Windows 11 on ATMs.

In an exclusive interview with International Finance, Jaivinder Singh Gill discusses the evolving role of cash and ATMs in the digital era, the problems encountered while upgrading banking technology systems, and the impact of intelligent self-service solutions and automation on the future of financial services.

With the rapid growth of digital payments such as UPI, how are banks rethinking the role of ATM networks and self-service banking in the overall customer journey?

The rise of digital payments needs to be looked at from the overall payments landscape. Digital payments are helping financial institutions to include a large section of the previously unbanked population into their financial systems at a much faster pace. From a self-service banking perspective, we are seeing a quicker convergence of the physical and digital, evident in UPI-based cash withdrawals from ATMs, real-time cheque truncation/ video teller through self-service, etc.

There’s a perception that cash usage is declining globally. From your perspective, how is the role of cash evolving in modern banking ecosystems, particularly in emerging markets?

Due to the rapid increase in the banked population across the region, more people are now part of the financial ecosystem. This large, banked population requires various channels of transactions, and hence we see a resurgence of the cash withdrawal values across the region. The rise in cash volumes is co-existent with the rise in digital payments, and hence, there is a co-existence phenomenon due to the increase in the banking population base.

What are the key challenges banks face when modernising legacy banking infrastructure while simultaneously building digital-first services?

Today, financial institutions face a unique challenge. While the global payments ecosystem is evolving rapidly, the legacy infrastructure of the majority of FIs makes it challenging to keep up with this evolution. The challenges are multiple and in the form of higher time to market, stiff fintech competition, complex operations, inconsistent customer experiences and a skills gap due to legacy code-based solutions.

How are intelligent ATMs and software-defined self-service platforms transforming the traditional ATM from a cash dispenser into a broader financial service point?

ATMs are now transitioning from being mono-function machines to highly intuitive multi-function banking service points. Modern self-service machines can now bridge the physical and digital payments world by seamlessly integrating via open banking and APIs. These machines can offer modern authentication mechanisms such as biometrics, and NFC-based mobile payments, enabling seamless and secure migration of key teller transactions to the self-service channel.

In what ways can automation and advanced ATM capabilities help banks expand financial inclusion, especially in underserved or rural regions?

Automation enables banks to provide services in underserved regions without expanding physical, full-fledged branch networks. Today’s self-service channel can migrate the majority of teller transactions, offering essential services at lower operational overheads. Today, the modern self-service devices provide 24/7 banking operations, leveraging AI-based remote tools to ensure maximum availability. User-friendly interfaces support local languages and intuitive interfaces. Integration with APIs and open banking enables seamless digital payments on physical channels. Intelligent cash recycling optimises operational costs, layered security protects against emerging physical and cyber threats, and efficient power management with remote capabilities helps reduce carbon emissions.

Cybersecurity and fraud prevention are major parts of the banking infrastructure. How are transaction platforms evolving to ensure secure and resilient financial ecosystems?

With the rise in digital payments and physical-digital convergence, security and resiliency across the payments lifecycle are paramount to ensure consumer trust. Hence, financial institutions today spend a majority of their time evaluating these aspects in any solution they evaluate. Security and resiliency are not only layered but are now embedded in the platforms. Companies are incorporating zero-day trust frameworks, investing in tokenisation, and providing seamless integrations to fraud management solutions. Platforms are building their tech to be ‘Always On, Always Available’, and are building infrastructure that is available on demand, auto scales, is API-driven and micro-services based to ensure a resilient payment technology.

What role do global banking infrastructure providers play in helping financial institutions scale digital services while maintaining reliability in the physical and digital channels?

As the payment tech innovates and volumes rise, payment modernisation is reimagining every customer touchpoint to drive operational efficiencies and deeper engagement: branch, ATM, teller, and digital. With legacy systems, there is a rise in complex integration-related challenges, increasing compliance risks and rising costs to manage all of this as a result. Global tech providers are better equipped to address these challenges owing to their vast experience in managing varied payment systems, implementing intricate transaction sets, and handling large-scale operations.

How do you see the relationship between physical banking infrastructure and digital channels evolving over the next five to 10 years?

The question is not really physical versus digital; that framing is already becoming outdated. Physical infrastructure will increasingly complement digital journeys, especially for services that require trust, assistance, and/or regulatory validation(s). Over time, financial institutions will move towards unified platforms that orchestrate these experiences across touchpoints, making channel boundaries largely invisible to customers.

With increasing pressure on banks to optimise costs, how can modern ATM networks contribute to operational efficiency while improving customer experience?

Modern ATM networks are becoming considerably leaner through predictive maintenance, automated cash management, and AI-driven remote services. Banks/FIs can directly increase consumer availability, streamline cash management, and optimise servicing costs. On top of this, modern ATM software allows addition/modification of services in a faster and leaner way. Taken together, these changes shift the ATM network from a cost centre with a fixed function into something that justifies its place in the broader operation by actively contributing to both efficiencies and enriched consumer experiences.

Looking ahead, what innovations in self-service banking or transaction technologies do you believe will most significantly shape the future of banking infrastructure?

The next phase of banking infrastructure will be driven by intelligence, connectivity, and flexibility. AI-led personalisation, cloud-native platforms, and deeper integration across channels will shape the ecosystem. Contactless, cardless, and biometric transactions will continue to grow. Ultimately, the focus will be on building infrastructure that is resilient, inclusive, and capable of delivering seamless experiences at scale.

The post Modern ATM software allows faster service modification: Jaivinder Singh Gill appeared first on International Finance.

Commercial Islamic banks operate as normal market-based financial institutions. However, their operational framework, compliant with Sharia principles, sets these entities apart from the non-Islamic segment. These values prohibit the interest payment, also known as riba, and outlaw purely speculative transactions.

Besides these contractual obligations, Islamic banks finance the same needs (SMEs, trade, housing, equipment and imports) as their conventional counterparts. Financing gets structured around contracts anchored in the real economy, such as Murabaha (cost-plus financing that avoids interest-based lending), Ijara (leasing arrangement), or Musharaka (risk- and profit-sharing partnership).

Also, Islamic banking is gaining prominence in Africa. UAE-based Dubai Islamic Bank (DIB) made the first move in 2022. Through its subsidiary “DIB Bank Kenya,” the venture announced the opening of a branch in Nairobi’s business district to strengthen SME financing and facilitate trade flows between Kenya and the UAE. DIB’s strategy has been to capitalize on the East African country’s growing economic hubs.

In Egypt, Abu Dhabi Islamic Bank (ADIB) has taken a different approach, by consolidating its longer-established and deeply rooted presence further. ADIB’s growing prominence in Egypt also makes the North African major a key entry point for other Gulf-based commercial Islamic financial entities, which combine elements such as retail banking, corporate financing and capital market operations in their product offerings.

However, alongside the expansion of Gulf banks, there is also evidence of a less obvious but equally significant phenomenon: the development of African players to dominate the sharia-compliant market while using the Gulf as a springboard to raise their profile.

Nyla Bank, a Ghanaian fintech described as a pan-African digital Islamic bank project, was selected as a semi-finalist in the Milken Motsepe Prize in FinTech in 2024 and is set to make a presentation at the Middle East and Africa summit organised by the Milken Institute in Abu Dhabi. This, therefore, also suggests that the sector’s development is being driven by African players with ties to the Gulf.

Apart from physical networks, some transactions evidence the increasing incorporation of commercial Islamic banks into African financing circuits, especially regarding syndicated murabaha operations and capital markets interventions. The aforementioned operations evidence a gradual, though targeted, level of integration into African economies. The commercial dimension is complemented by the second pillar of Islamic finance in Africa: development institutions.

Discussing Islamic banking’s growth in Africa, Saudi Arabia is also playing an important role. Jeddah-based Islamic Development Bank has now emerged as a dominant force for multilateral Islamic financing on the continent. Its operations focus on public projects, trade finance and risk mitigation, going well beyond traditional banking activities.

Meanwhile, Kuwait has largely concentrated its Islamic banking activities in North Africa, with Egypt emerging as the primary hub. Kuwait Finance House also enhanced its presence in 2025 by changing the name of Ahli United Bank Egypt to “KFH Egypt.” KFH Egypt is an entity that is fully sharia-compliant and has a considerable branch network. This is in addition to capital markets; an example is the issuance of sovereign sukuk with the involvement of KFH.

The post Islamic banking in Africa: Gulf actors follow different paths appeared first on International Finance.

And yet, up to three-quarters of companies are still using paper checks, for example, despite inefficiencies and increasing costs. While traditional document handling and processing might seem familiar and reliable, they are fast becoming outdated and potentially hazardous for companies and customers.

Digitalisation, of course, can be complex, and there is considerable planning and execution involved that can take months to complete. However, one key step finance companies (and those processing paper transactions en masse) should take immediately is to switch to digital signatures across all their documents.

Why digital signatures matter

Digital signatures have emerged as a natural successor to the well-worn paper-based standard. Through digital contract signing and payment authorisation, key transactions are easier to attach to certain parties, and it’s a quick route towards ensuring complete compliance with data retention and processing.

Learning how to sign documents online is, in the mid-2020s, a simple process that’s easy to train on and roll out across payment handling teams. We now have the systems and software to embed digital signatures into legacy tools and documents, too, meaning it can easily become part of existing processes at minimal cost.

Shockingly, reports show that 63% of companies surveyed by the AFP experienced some form of physical check fraud in 2024. If we’re to face transaction fraud head-on, we need to move more efficiently away from paper documents and legacy signage.

Key benefits

Beyond the obvious benefits of digitalisation in general, there are key benefits of digital signatures in financial transactions worth considering.

Digital signatures allow for faster processing and decision-making. The time it takes for physical checks and financial documents to get signed, authorised, and marked off can be cut down dramatically with automation and streamlined workflows. There are fewer checking steps, and reviews take seconds, not days.

They are more securely stored. Using a leading e-signature platform and data backup system means you can always be sure client signatures are encrypted and kept away from bad actors. Physical documents are always at the mercy of being lost and stolen, which can cause fraud and administrative headaches for all parties involved.

Another security benefit to digital signatures is that, with the right platform, they are easy to create and store so that they can’t be tampered with by third parties. Again, a digital paper trail can effectively verify signing intent and payment processing without confusion. Digital signatures also benefit compliance. In an age where companies face millions of dollars in potential fines for not complying with data protection laws, digital signatures can effectively prove that a company is doing enough to meet certain standards.

Ultimately, digital signatures remove the costs of physical document processing and the checks required along the way. Therefore, this form of digital streamlining frees up administrative hours that can be used more cost-effectively elsewhere.

The future of digital signatures

There are many ways that digital signatures will continue to evolve in finance in the years to come. For one, artificial intelligence can learn to recognise signatures from data to automatically approve payments, calculate money received and sent, and search for anomalies.

What’s more, companies may also use blockchain technology to create records and contracts with even more irrefutability. Digitally signed documents, established on the blockchain, will be even harder to counterfeit or dispute.

Up to 80% of US businesses are already using digital signatures in some shape or form, with that number likely to grow exponentially by the start of the next decade. However, now is the time to start taking steps towards making signage digital, regardless of what trends suggest.

The post Finance moves to digital signatures appeared first on International Finance.

Finance teams rarely struggle because they lack discipline or effort. They struggle because revenue, lease obligations, approvals and reconciliations sit across disconnected systems, often stitched together by spreadsheets and manual handoffs. As transaction volumes grow and monetisation models become more complex, those seams begin to show.

In this environment, automation is not about speed alone. It is about reducing opacity, strengthening governance and enabling finance to scale without increasing risk.

Research from the American Productivity & Quality Centre (APQC) shows that top-performing organisations close in four to five days, while others may take 10 days or more. As standards such as ASC 842 and IFRS 16 increase reporting complexity, spreadsheet-driven processes introduce higher exposure to error and compliance gaps. For senior finance leaders, the question is no longer whether to automate, but how to do so in a way that embeds control directly into the operating model.

Drivers of close fatigue

Manual month-end activities create predictable pressure points: intercompany reconciliations, revenue recognition adjustments, lease accounting calculations and journal approvals that span multiple platforms. Each manual transfer of data increases the likelihood of delay, inconsistency or error.

Regulatory expectations continue to rise. Frameworks such as the COSO Internal Control – Integrated Framework emphasise documented controls, segregation of duties and traceable audit trails. In many organisations, these controls still depend on manual review and post-close validation.

The result is a reactive closed cycle. Issues surface at the end of the period, when timelines are tight and corrective action is costly. Automation, when designed correctly, shifts finance from reactive correction to continuous control.

Finance automation best practices

Automation works best when processes are simplified and clearly defined. Finance leaders should map month-end activities end-to-end, identifying dependencies and eliminating unnecessary steps. Standardisation reduces variability and creates the foundation for scalable automation across business units and geographies.

Disconnected ERP, billing, contract and lease systems are a primary cause of reconciliation delays. Integration at the data layer ensures transactions, adjustments and contract changes flow automatically and consistently, giving teams a single source of truth.

Recurring activities such as accruals, amortisation schedules and lease calculations should be governed by predefined system rules. This reduces manual intervention and strengthens audit trails. More advanced automation flags unusual transactions or anomalies during the period rather than after close. By surfacing exceptions early, finance teams avoid last-minute surprises. Increasingly, advanced platforms use embedded intelligence to flag anomalies mid-cycle rather than after close.

Regulatory standards require not only accurate calculations but documented controls. Automated approval flows, version tracking, and role-based access controls ensure that changes to contracts or accounting treatments are captured transparently. When compliance is built into the workflow, audit readiness becomes continuous rather than cyclical.

Dashboards that display reconciliation status, outstanding approvals and exception trends provide finance leaders with visibility throughout the month. Instead of discovering bottlenecks at the end of the cycle, teams can address issues proactively. The shift from periodic reporting to continuous monitoring reduces risk and improves predictability.

Automation as a strategic lever

For organisations with complex revenue models, large lease portfolios or multinational operations, the stakes are higher. Each new pricing structure, geographic expansion or regulatory requirement adds reconciliations and control points to the close. Without automation, headcount and spreadsheet dependency grow alongside complexity.

Well-designed automation enables scale without proportional increases in cost or risk. Systems can absorb higher transaction volumes while maintaining consistent controls and audit trails. Finance teams spend less time gathering and validating data and more time analysing performance, forecasting outcomes and advising the business.

In a regulatory environment that demands transparency and precision, automation is not simply an operational enhancement. It is a governance decision. Finance leaders who take a structured approach create a close process that is faster, more resilient and better aligned to strategic growth.

The post Automate finance, end month end stress appeared first on International Finance.

Blockchain is opening up new money flows, cross-border transactions are speeding up, and artificial intelligence (AI) is revolutionising financial processes. At the same time, businesses are being forced by regulatory changes to incorporate compliance technology, which will ensure their resilience at a time of increased scrutiny.

B2B finance is at a turning point. In addition to changing the financial infrastructure, the convergence of these advances is radically changing how businesses control risk, streamline processes, and spur expansion.

Businesses that successfully use fintech solutions will have a competitive advantage, while those that don’t adjust quickly run the risk of becoming obsolete in the rapidly digitalised financial sector.

The quickening of business payments

As businesses seek quicker, more affordable solutions, the global payment infrastructure is changing. By the end of 2025, it is anticipated that the total number of cross-border blockchain transactions will have increased by 48% year over year to $5 trillion. The demand for smooth, real-time settlement solutions is expected to propel the worldwide payment processing industry, valued at $79.6 billion in 2024, to more than double, reaching $161.9 billion by 2030.

In addition to speeding up transactions, this development is forcing companies to reconsider their financial arrangements and hastening the use of financial products based on blockchain technology to improve liquidity management and maximise cash flow. This growing reliance on digital assets is ushering in a more automated and decentralised corporate finance ecosystem.

Digital asset usage in corporate finance is becoming a strategic imperative rather than just conjecture. Blockchain technology is used by financial institutions and global firms to improve security, liquidity management, and transaction efficiency.

Early blockchain projects were mostly limited to experimental pilots, but due to institutional demand, regulatory changes, and cost-saving advantages, corporate adoption has now moved to full-scale implementation.

Due to growing corporate adoption, the financial blockchain market is expected to reach $49.2 billion by 2030. Tokenisation is driving this change, as companies digitise financial instruments, commodities, and real estate to enhance liquidity and tradability.

Experts predict that the demand for tokenised assets will surpass $600 billion. Tokenised assets are already being incorporated by businesses into trade settlement, supply chain finance, and cross-border transactions, which lowers counterparty risks and shortens settlement times from days to seconds.

At the forefront of this change are institutions. Leading exchanges are modifying their models to include institutional-grade digital assets, while international banks and asset managers are introducing tokenisation platforms to enable blockchain-based financial instruments. The distinction between decentralised finance (DeFi) and traditional finance is starting to become less clear, opening up new avenues for investment vehicles and capital markets.

But there are still obstacles in the way of widespread acceptance. As different jurisdictions adopt varying approaches to digital asset monitoring and compliance regimes, regulatory uncertainty remains a major concern.

While some regions, like Singapore and the European Union, have taken proactive measures to set clear regulatory norms, others are still figuring out where they stand. Businesses’ approaches to risk reduction, security procedures, and compliance will be influenced by these changing policies.

Businesses that successfully integrate tokenisation into their financial strategy will be positioned for long-term success in an increasingly digitised and decentralised global economy, even though adoption will move at varying rates across industries.

The institutional shift and CBDCs

Central Bank Digital Currencies (CBDCs) are still developing, but more slowly than first thought. Citing the need for legislative clarity, interoperability testing, and risk assessment, about one-third of central banks have postponed their intentions to introduce digital versions of their currencies.

Most, however, are still driven to keep control over monetary policy and currency issuance and are dedicated to eventual adoption. The increase in cross-border wholesale CBDC initiatives over the past few years is indicative of an institutional focus on improving interbank settlements and simplifying international financial flows.

The People’s Bank of China (PBOC), the European Central Bank (ECB), and the United States Federal Reserve are among the central banks that have started pilot programmes to test the infrastructure for digital currency transactions at the wholesale level. Project mBridge, which links banks in China, Thailand, the United Arab Emirates (UAE), Hong Kong, and Saudi Arabia, is one of them.

Wholesale CBDCs are emerging as a more attractive option for large-scale corporate transactions, liquidity management, and cross-border trade financing as central banks concentrate on improving interbank settlements and simplifying international financial flows.

Adoption of CBDCs has important and encouraging ramifications for businesses. Reduced transaction costs, quicker settlement times, and less dependence on middlemen are all advantages for businesses involved in international trade.

By facilitating quicker settlement times and lowering reliance on intermediary currencies, wholesale CBDCs have the potential to lower foreign exchange risks, especially in emerging markets where operational difficulties are caused by currency volatility. CBDCs could reduce the risks related to foreign exchange swings in cross-border payments by facilitating direct currency exchanges and improving transparency in cross-currency transactions.

Despite these benefits, privacy laws, their influence on monetary policy, and cybersecurity issues remain major barriers to widespread adoption. The digital currency frameworks of some jurisdictions, like China and the UAE, are developing quickly, but others are still cautious and are waiting for more precise guidelines regarding the governance of CBDCs and their integration with current financial systems.

Businesses must keep up with changing technology and regulatory environments as CBDCs continue to grow. Navigating the next stage of financial digitisation will require an understanding of how digital currencies fit into global payment infrastructure, liquidity management, and corporate finance. This emphasis on ongoing learning and adaptation highlights the significance of remaining informed and proactive in the rapidly changing fintech world.

Future of enterprise finance and AI

Artificial intelligence is evolving from a tool for efficiency to a fundamental component of enterprise finance, changing everything from sophisticated financial modelling to real-time risk management. As businesses scramble to incorporate automation and machine learning into financial operations, investments in AI-driven compliance, fraud detection, and predictive analytics are increasing.

The B2B banking industry has proven AI’s usefulness for automated risk assessment. It enables businesses to examine large financial data sets to identify irregularities and make previously unheard-of credit risk predictions.

Real-time transactional behaviour analysis by AI-driven fraud detection systems, which are already integrated into international payment networks, can reduce financial crime losses by up to 50% by flagging questionable activity.

Corporate finance is also changing as a result of the emergence of generative AI. Complex legal documents, contract analysis, and regulatory compliance reporting are now processed by AI-powered automation, which can reduce processing times by up to 90%.

Businesses now face additional security and regulatory problems as AI develops. Although AI improves financial decision-making, authorities are examining AI-driven financial services more closely, so companies must use understandable AI models to ensure compliance and transparency.

For financial organisations, investing in AI is now a strategic need rather than an option. In an increasingly automated and data-driven economy, businesses that do not incorporate AI-powered financial solutions run the danger of falling behind.

Fintech adoption for compliance

Regulatory compliance is still a major concern as financial technology changes business interactions. Businesses are being forced to reconsider how they handle compliance as a result of the growing complexity of international financial regulations, as well as the emergence of digital assets, AI-driven financial services, and CBDCs.

Regulatory technology (RegTech), which offers automated solutions for risk assessment, fraud prevention, and real-time monitoring, is becoming an increasingly important part of enterprise fintech plans.

Several important causes are driving the need for RegTech. Businesses that conduct cross-border operations must adhere to several regulatory frameworks, which raises the cost and difficulty of reporting. Businesses may automate compliance procedures with AI-powered RegTech solutions, guaranteeing adherence to changing jurisdictional standards while lowering operational risks.

As businesses enhance automation to manage regulatory complexity, the RegTech industry is expected to grow at a compound annual growth rate (CAGR) of 21.6% from its 2023 valuation of $11.7 billion to $83.8 billion by 2033, according to Allied Industry Research.

AI is already being used to expedite manufacturing, healthcare, and financial regulatory procedures. By automating risk assessments, fraud detection, and legal reporting, RegTech platforms powered by AI have been demonstrated to dramatically lower compliance costs. AI-based solutions have reduced document filing times in legal departments by 90%, improving operational effectiveness and reducing compliance expenses.

Initiatives for digital compliance are also being accelerated by governments and financial institutions, especially in light of the growth of digital currencies and decentralised finance (DeFi). Regulatory frameworks must change as blockchain-based transactions and CBDCs become more popular in order to adequately supervise these financial innovations.

Businesses that don’t incorporate automated compliance solutions run the danger of facing fines from the government, being investigated, and experiencing operational inefficiencies.

Businesses can lower compliance expenses, improve fraud detection capabilities, and increase the effectiveness of regulatory reporting by utilising RegTech. Integrating AI-powered compliance technologies enables businesses to manage changing regulations and reduce the dangers of financial crime.

Businesses that proactively deploy RegTech solutions will be better equipped to handle the increasingly complicated global regulatory environment as financial technology continues to evolve at a rapid pace.

In order to negotiate an increasingly complex legal environment, businesses must make sure that their infrastructure is ready for the integration of digital assets, engage in staff development to maximise AI applications, and have strict compliance procedures in place. Cybersecurity is still a major worry, and to protect digital transactions, firms must implement advanced risk mitigation techniques.

Despite the traditional lag in B2B financial technology adoption compared to consumer finance, 2025 represents a significant shift. Failure to integrate financial technology puts businesses at risk of operational inefficiencies and decreased competitiveness, especially as the sector transitions to full-scale digitisation. Moving from trial adoption to strategic deployment is now essential, making sure that technology investments solve particular operational issues and provide quantifiable corporate value.

Opportunities are being created by the quickening adoption of financial technology, but businesses that don’t make strategic plans may find it difficult to remain resilient in a setting that is changing quickly. Enterprise transactions in the future will be shaped by companies that adopt digital finance innovations now; those that do not run the risk of becoming permanently behind in a financial ecosystem that is changing quickly.

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“The real estate sector has recorded 214,912 transactions in sales, valued at AED 682.5 billion. This reflects an 18.86% increase in volume and 30.7% growth in value. This performance demonstrates steady market growth and strong investor confidence in the Emirate. The total gift transactions were 9,556, valued at AED 57.25 billion, while the mortgage transactions reached 50,974, valued at AED 179.26 billion,” stated the Dubai Land Department (DLD).

With elements like flexible payment plans, affordable entry, strong potential for high rental yields and strong capital appreciation coming into play, DLD noted that apartments remained attractive to investors and homebuyers.

The market recorded approximately 203,000 residential sales, representing a 17.34% increase from 2024. Off-plan properties dominated the market, with a 62.6% share of total transactions.

“Total off-plan sales are 134,623, valued at approximately AED 293 billion. The off-plan properties cater to buyers and investors looking for modern design, top-tier amenities, premium finishes, smart home features, and strong capital appreciation,” DLD stated.

According to Shireen Khan, CEO of Kelt and Co Realty, “Dubai’s real estate market has shown unprecedented growth in 2025. This upward trend reflects stable activity from both end-users and investors. As we move into 2026, the growth is expected to accelerate due to the growing population, increasing demand for residential and commercial spaces, and lucrative investment opportunities.”

Jumeirah Village Circle, Business Bay, Dubai Land Residence Complex, Dubai Investment Park Second and Madinat Al Matar were the top-performing areas in terms of the total asset sales volume in 2025. In terms of “Top Performing Areas by Value,” the top five areas were Business Bay, Jumeirah Village Circle, Al Yelayiss 1, Dubai Investment Park Second and Palm Jumeirah.

The mortgage market, too, continued its upward momentum in 2025, closing 50,974 deals, marking an increase of 22.5% from 2024. The mortgage values reached AED 179.26 billion, a 4.5% YoY decrease.

Shireen Khan concluded, “With transparent regulations, long-term visas, and the development of cutting-edge infrastructure, investors’ confidence is increasing in Dubai’s real estate market. This has developed a favourable environment for both local and international investors, allowing them to benefit from strong capital appreciation and high rental yields.”

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“The residential sales transactions in Riyadh reached 13,000 between July and September 2025, up nearly 19% on the previous quarter. The capital delivered 10,000 new units in the first nine months of the year, with another 6,000 during Q4,” the report stated.

Apart from Riyadh, another Saudi city, Dammam, which made its debut in Cavendish Maxwell’s latest KSA report, saw its property sales reaching the highest levels for several years, with 3,000 transactions in Q3 2025, up nearly 60% on the same time in 2024 and 37% on Q2 2025. Jeddah too witnessed a boost in quarterly sales, as transactions rose by 10% to 7,500 and sales values reached SAR8.7 billion (USD 2.31 billion), a 9% increase compared to Q2.

While all three cities have seen quarterly increases in sales values and volumes, Riyadh and Jeddah both saw a year-on-year decline, largely driven by affordability pressures. Sales were down 44% in Riyadh and 19% in Jeddah.

Riyadh-based Sean Heckford, Director of Built Asset Consulting at Cavendish Maxwell, said, “Riyadh’s rapid price appreciation in 2024 led to sharp increases in both sales and rental prices, prompting the Government to introduce a five-year rent freeze to address affordability concerns. In Jeddah, price conditions have stabilised and affordability pressures have eased slightly. Meanwhile, Dammam, where property is more affordable, is emerging as a new hot spot for property investment, with a year-on-year surge in buying activity from both end-users and investors.”

The latest “KSA Residential Market Report” also witnessed Q3 sales prices for apartments and villas rising across Riyadh, Dammam and Jeddah, with the biggest increases seen in the Saudi capital. Rental rates for apartments, on the other hand, were up in all three areas, with Riyadh commanding the largest uptick. Villa rents, on the other hand, rose in Riyadh and Dammam, but fell slightly in Jeddah.

By the end of 2025, 22,800 new units are expected to be delivered during the year across the three cities, and another 105,000 are in the pipeline till 2027. And most importantly, the Kingdom’s “White Land Tax” reforms and new foreign ownership laws will further accelerate demand.

The largest increases in sales prices were in Riyadh, where apartment prices rose to an average SAR6,160 (USD 1,642) psm (per sq m) in Q3, up 7.5% compared to the same time in 2024. Villa prices in the capital reached SAR5,500 (USD 1,466) psm, up 10.1%. In Jeddah, apartment prices were up 1.6% to SAR4,360 (USD 1,162) psm, while villa costs rose 3.1% to reach SAR5,140 (USD 1,370) psm. Dammam apartment prices climbed by 5.8% year-on-year, and villas by 3.2%.

“Riyadh also commanded the highest hikes in rents, with apartments up by 11.8% year-on-year and villas by 10.7%. Jeddah apartment rents increased by 5.6% year-over-year, while villa rents declined by 2.1%. In Dammam, apartment rents increased by 4.8%, while villa rents rose by 2.2%. Combined, the three cities delivered 13,500 new homes in the first nine months of the year, with total 2025 deliveries expected to reach 22,800 by the end of December. Another 105,000 are slated for 2026 and 2027. By the end of 2025, Riyadh will have brought 16,000 new homes to the market; Jeddah 5,000 and Dammam 1,800. Riyadh has 57,000 new units in the pipeline for 2026 and 2027, with 36,000 expected in Jeddah and 12,000 in Dammam,” Cavendish Maxwell noted.

Meanwhile, the Kingdom has introduced a new foreign ownership law, which will come into effect in January 2026, and this will be a major step forward for the Gulf major’s real estate sector that should further accelerate buyer activity, while the recently introduced “White Land Tax” incentivises land owners to either sell or develop their plots.

“Riyadh’s five-year rent freeze, announced in September 2025, will make properties more affordable at the same time, but could also reduce landlords’ incentives to maintain their properties or invest in future stock, creating short-term pressure on future developments. It will be important to track how these regulations influence market dynamics in the near term,” said Cavendish Maxwell in its statement.

Heckford concluded, “Saudi Arabia’s Q3 residential market performance reflects a transitional phase marked by strong macroeconomic fundamentals and evolving regulatory measures. Despite affordability challenges in Riyadh, demand remains resilient, supported by the new laws and tax systems. Jeddah demonstrates stability with balanced supply and demand dynamics, and Dammam stands out as a growth hotspot driven by affordability and investor interest. Vision 2030 initiatives and infrastructure investments will be pivotal in sustaining momentum and unlocking new investment opportunities across all major cities in KSA.”

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Founded to address Iraq’s fragmented and cash-dependent financial system, Qi has become the country’s largest issuer and acquirer of electronic payments. As of 2025, the company serves over 10 million customers and processes transactions valued at over 100 billion USD annually. With over 13 million active accounts and cards, Qi has contributed significantly to increasing Iraq’s banked population from around 5% in 2007 to over 40% today.

Qi’s efforts in advancing Iraq’s fintech sector have earned it recognition both nationally and internationally. In 2023, the company received two significant awards at the International Finance Awards: “Best Credit Solutions Provider – Iraq” and “Fastest Growing E-Payment App – Iraq.” These awards reflect Qi’s ongoing investment in product development, user experience, and technological innovation.

Mission And Vision

Qi’s mission centres on creating secure, simple, and accessible financial tools for every Iraqi citizen. The company envisions a future in which digital payments replace cash transactions, promoting transparency, efficiency, and convenience across all sectors of the economy. By providing inclusive financial solutions, Qi aims to empower individuals, support small businesses, and strengthen Iraq’s digital economy.

As it continues to expand, Qi remains committed to innovation and collaboration. Its focus on technological advancement, customer accessibility, and regulatory compliance has positioned it as one of the key players in Iraq’s journey toward a cashless society. Through partnerships, digital platforms, and financial literacy initiatives, Qi seeks to ensure that every Iraqi participates in the evolving digital landscape.

Services And Technology

Qi’s services are designed to provide secure and accessible digital financial solutions. The company utilises biometric authentication technologies to ensure the safe distribution of government salaries, pensions, and social security payments. Its infrastructure includes a nationwide network of over 43,000 point-of-sale (POS) terminals and approximately 500 enrolment centres, covering all provinces of Iraq.

The company’s “Super Qi” mobile application offers a digital-first platform for financial transactions. Through the app, users can send and receive money, pay bills, make e-commerce purchases, scan to pay merchants, and support charitable donations. The platform connects individuals, businesses, and government entities, enabling a unified digital ecosystem for financial activity.

Financial Inclusion And Consumer Services

Qi has launched various credit and microfinance solutions to enhance financial access and support economic development.

Its programmes, such as “Salfni,” “Aqsati,” and “Buy Now Pay Later (BNPL)” enable users to obtain short-term credit, pay in instalments, or finance purchases for education, small businesses, and household goods. These services are intended to help Iraqi citizens manage expenses, pursue personal goals, and participate more actively in the formal economy.

Partnerships And Collaborations

Qi collaborates closely with Iraqi government institutions, private sector organisations, and international partners to develop and deliver digital payment systems. The company’s partnerships include projects with the Ministry of Housing to facilitate loan repayments, the Ministry of Interior to digitise administrative processes, and pension funds to ensure secure and timely payments to over four million retirees. Qi also supports social welfare programmes that benefit more than 750,000 vulnerable citizens.

On the international level, Qi has partnered with global technology and financial companies such as MasterCard, Visa, Oracle, and Ernst & Young (EY). These tie-ups have enhanced Qi’s operational capabilities, enabling it to integrate global security standards, compliance, and innovation. Working under the regulatory framework of the Central Bank of Iraq, the company contributes to the country’s broader goals for digital transformation and financial inclusion.

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The new law introduces significant provisions to facilitate the fair restructuring of the banking sector, including auditing the banks’ balance sheets and assessing their ability to continue operating. Lifting banking secrecy will now enable the Central Bank and the Banking Control Commission to access banking data. This allows oversight bodies to rely on specialised auditors, selected by the Central Bank, to evaluate each bank individually and investigate potential violations by bank management.

The law applies retroactively for up to 10 years, covering all banking operations since 2015. This enables regulators such as the Central Bank and the Banking Control Commission to revisit pre-crisis transactions and reclaim illegally obtained profits made by banks’ shareholders at the expense of depositors.

“Most importantly, the law’s primary mandate of lifting banking secrecy is not limited to the bank restructuring process; it extends to routine oversight, even after restructuring is complete. The law clearly allows the Central Bank and the Banking Control Commission to access client names, account balances, and any banking records,” said Ali Noureddeen, the Senior Inclusive Economies Associate at TIMEP (Tahrir Institute for Middle East Policy).

What is the Secrecy Law about?

In 1956, as the banking system was formed under President Camille Chamoun’s watch, Lebanon enacted the “Banking Secrecy Law,” which explicitly stipulated the confidentiality of information related to customer names and transactions, prohibiting its disclosure to any individual or public authority (even tax or judicial bodies).

This restriction was also applied to foreign authorities. Even the Central Bank’s oversight authority, the Banking Control Commission, lacked the power to access data related to clients’ accounts. This was despite the commission being legally mandated to audit banks’ operations and ensure compliance with the law.

The law was passed during an era of wealth accumulation from oil extraction in the Gulf region. Back then, regional investors sought stable banking systems, especially since Gulf countries had not yet developed the financial systems they have today. Lebanon’s banking secrecy model provided a reassuring financial environment, especially for those who preferred to keep their wealth undisclosed.

When neighbouring countries like Syria, Egypt, and Iraq experienced waves of nationalisation in the 1950s and 1960s, Lebanon’s banking secrecy served as an attractive shield. Wealthy segments in these countries sought to transfer their capital to safer environments, away from oversight or political risk. Likewise, Lebanese expatriates saw banking secrecy in Lebanon as a way to hide their savings from tax authorities in their host countries.

Banking secrecy became one of the key drivers of the sector’s prosperity before the onset of the civil war in 1975, aided by the freedom of capital movement afforded by Beirut’s developed financial market. During this period, the number of Lebanese banks grew from nine in 1945 to 85 in 1960, and deposits multiplied nearly 38-fold between 1950 and 1975.

However, over the past two decades, several domestic and international developments rendered banking secrecy ineffective in attracting foreign capital, gradually eroding the competitive advantage it once provided. In contrast, the drawbacks of this model became more pronounced, particularly in obstructing efforts to combat banking violations, illicit operations, and money laundering activities.

In 2016, Lebanon joined the “Global Account Tax Compliance Act” agreement, which required it to report accounts held by foreign residents in Lebanese banks to their countries of residence. During the 2021–22 period, Lebanese banks began complying with the American Foreign Account Tax Compliance Act (FATCA) law, which obligates them to disclose any accounts held by American citizens to US tax authorities. As such, banking secrecy no longer made Lebanon a tax haven for wealthy foreign residents.

Meanwhile, Gulf financial markets had developed substantially over the past decades, and Beirut lost the monopoly on liberal and advanced financial systems in the Middle East. The UAE, for instance, developed its own financial system into a tax haven, attracting capital from other Gulf nations and eroding Lebanon’s share of the regional market.

Still, banking secrecy continued to cast a long shadow over Lebanon’s ability to regulate and oversee financial activities. It also hindered tax audit procedures that required authorities to access banking data to cross-check it with tax declarations, making such verification impossible. This was one of the main reasons behind Lebanon’s failure in building a system of tax control and audit to curb tax evasion, estimated at nearly 50% of due taxes. The IMF valued this loss to the Lebanese state at around $4–5 billion annually.

The new law introduces significant provisions to facilitate the fair restructuring of the banking sector. This process is expected to include auditing the banks’ balance sheets and assessing their ability to continue operating. Also, lifting banking secrecy granted the Central Bank and the Banking Control Commission access to banking data, including for audit firms appointed by the Central Bank. This enables oversight bodies to rely on specialised auditors, picked by the Central Bank, to evaluate each bank individually and investigate potential violations by bank management.

An unhappy banking lobby

Even though the new law is quite accommodating, the banks in Lebanon are opposing it and using the media to disparage the legislation. They refuse to take any accountability for the problem. Ever since the formation of Nawaf Salam’s government in February 2025, coordinated defamatory campaigns have targeted independent media outlets, economists, local advocacy groups, and even political figures calling for financial and political reforms.

“The country’s banking lobby, along with the media outlets it funds, has intensified its media campaign as the new government places banking and financial reform among its top priorities. These reforms include resuming negotiations with the International Monetary Fund over a bailout deal, drafting a financial recovery plan, restructuring banks, passing a law that lifts banking secrecy, and filling key public posts, most notably appointing a new Central Bank governor. As conspiracy theories were being spread to discredit reformists and distract the public, the banking lobby has mobilised to block financial and economic reforms unfavourable to its interests. It is in this vein that the lobby’s candidate, Karim Souaid, was appointed on March 27 to lead the Central Bank without much public scrutiny of his agenda,” Noureddeen noted.

“The coordinated media campaign was consistent in its messaging across numerous online media platforms and television programmes, funded by Lebanese businessman and banker Antoun Sehnaoui, a major shareholder and chairman of Societe Generale de Banque au Liban. Sehnaoui is one of the most influential Lebanese bankers and controls various media outlets that reflect his views and defend his interests. He also wields significant influence within a wide range of political parties, MPs, and decision-makers, thanks to his active support and financing of various electoral campaigns and political activities,” he added.

The banks have blamed Kulluna Irada, a pressure group and civil society organisation that has advocated for financial reforms. They assert that the group disseminated false information that caused a bank run and prevented the banks from paying back depositors. The group has been maligned by the media, which has strong ties to the banking industry.

They also spread a conspiracy theory that claimed Kulluna Irada was funded by American billionaire George Soros and the “Global Left.” In fact, independent media platforms Megaphone and Daraj, whose reporting since the beginning of the financial crisis contributed to exposing the violations committed by political and banking elites at the expense of depositors and public funds, weren’t spared either.

Souaid, an asset manager with deep ties to Lebanon’s political and financial establishments, was portrayed as the figure capable of confronting the very conspiracy allegedly orchestrated by Daraj, Megaphone, and Kulluna Irada. Souaid’s nomination and his eventual appointment were met with objections from a wide range of reform advocates, such as the Depositors Union (a collective representing the rights of Lebanese depositors) and other public policy organisations, along with cabinet members and MPs.

The reason behind the banking lobby fiercely backing Souaid lies in the fact that he previously presented a plan to address the crisis by converting the deposits that banks are unable to pay into debts owed by the Lebanese state. The responsibility to repay these deposits would therefore be transferred from the banks to the government. The plan then suggested implementing a “haircut,” or a write-off, of up to 90% of the government’s debts, which would mean that the depositors’ rights would simply disappear. This way, banks would be able to rid themselves of their crisis at the expense of depositors and taxpayers.

The smear campaign from the banking lobby successfully diverted attention away from this problematic plan, which ended up receiving minimal scrutiny in the media. Souaid’s appointment came despite objections from Prime Minister Nawaf Salam himself and a group of ministers. He managed to garner enough votes in the Council of Ministers, benefiting from the support of the President’s top economic advisor, Varouj Nerguizian, who served alongside Souaid on the Board of Directors of Emirates Lebanon Bank. This gave Souaid a big advantage over other candidates, given the President’s influence over the Council of Ministers’ decisions.

What comes now?

The immediate challenge for the Central Bank and the Banking Control Commission is to use the law effectively by auditing the banks’ assets and liabilities and assessing their financial positions. Initiating a comprehensive audit process in the banking sector requires a high degree of determination on the part of the Central Bank, apart from the ability to confront political pressures from actors (including the banking lobby) who will not welcome these measures.

“The next step is to audit transactions from the last 10 years, to identify the causes of losses and establish fair accountability. This means that losses should be borne by those responsible, particularly those who profited unlawfully at the expense of depositors. This stands in contrast to the policies adopted by the banking sector since 2019, which have placed the heaviest burden on depositors by withholding deposits or repaying them at significant discounts. To continue the reform process, Parliament must now pass the Bank Restructuring Law, already adopted by the government as a draft bill. This law will overhaul the Higher Banking Council, the sector’s main regulatory authority, and specify the powers of the Banking Control Commission. It will also define criteria for identifying viable banks for recapitalisation (injecting new funds into the banks through contributions made by current or future shareholders) versus those to be merged or liquidated,” Noureddeen remarked.

Another critical step remains the passage of the “Financial Stability Law,” or “Financial Gap Law,” which has not yet been approved as a draft bill. This law is fundamental to resolving the banking crisis, as it will define how to address the existing loss gap and determine the level of deposit protection. Passing it transparently and fairly will be a decisive step toward restoring trust, delivering justice to depositors, and halting Lebanon’s ongoing collapse.

“Currently, the main challenge, particularly on the part of the Central Bank and the Banking Control Commission, is to begin making use of the legislation that lifted banking secrecy. This requires the commission to start auditing banks’ balance sheets, to assess the financial condition of each bank, and to form a clear picture of the portion of deposits the banking sector can currently guarantee. It also necessitates launching a detailed audit of the banking practices carried out over the past years. Without these steps, the lifting of banking secrecy will not contribute to achieving justice for depositors.

The government has also proposed a new law to scrap banking secrecy rules in Lebanon, which prohibits banks from disclosing customer information without their consent, even to government entities. The media outlets aligned with the banking lobby were quick to defend banking secrecy, saying it is needed to preserve the sector’s appeal and maintain confidence in it,” Noureddeen added.

While proponents of lifting banking secrecy say that removing such restrictions is necessary for implementing the restructuring of the banking sector, by uncovering the causes of accumulated losses and addressing them, the banking lobby fears the move would uncover major violations that generated significant profits for them at the expense of depositors’ funds. Among these practices are the “financial engineering” operations that yielded large profits for the banks while causing losses to the central bank, depleting the depositors’ funds it held.

Also, the “banking secrecy” clause resulted in situations where Lebanese courts lacked access to critical financial information for investigating cases of embezzlement, illicit enrichment, and other financial crimes.

“Even when Lebanon created the Special Investigation Commission in 2001 under the Anti-Money Laundering Law, to combat illegal banking activities, the law did not mandate the commission to provide information to judicial, regulatory, or tax authorities. Instead, it retained absolute discretionary power to assess whether any given incident constitutes money laundering, without giving any other authority the ability to appeal this assessment. The commission also remained under the control of the Central Bank governor, creating a clear conflict of interest. For this reason, the commission played no serious role in pursuing money laundering cases within Lebanon’s banking system,” Noureddeen concluded, a statement that illustrates the “Pandora’s Box” Lebanon’s banking sector became.

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