Interviewed by Foo Boon Ping
Customers in Malaysia increasingly expect international payments to be as seamless as local transfers. At a closed-door roundtable convened by TAB Global with Visa, participants examined how banks are adapting to these expectations while addressing challenges of fraud, liquidity, compliance and legacy infrastructure. The discussion underscored that agility in cross-border payments is measured not only by speed but by trust, predictability and resilience.
Cross-border payments have become a critical part of Malaysia’s financial ecosystem, extending well beyond the remit of large corporates. The growth of regional supply chains, digital commerce and freelance economies means that individuals, SMEs (small and medium-sized enterprises) and corporates are all moving money across borders more frequently than ever. This has created rising expectations for payments to be as seamless, transparent and instant as domestic transfers.
These shifts have placed banks under pressure to modernise their infrastructure and processes. Customers now compare financial institutions not only with peers but with fintechs and consumer-grade applications that promise instant, app-based solutions. The result is a widening gap between what customers expect and what many traditional providers are equipped to deliver.
To explore these challenges, TAB Global and Visa convened a closed-door roundtable in Kuala Lumpur with a group of senior executives from banks. Participants examined the competing demands shaping cross-border payments: how to deliver fully digital journeys without sacrificing security, how to reconcile the need for speed with liquidity and predictability, and how to embed compliance without adding friction. They also debated the role of new technologies, from application programming interfaces (APIs) and corridor linkages to stablecoins and decentralised finance.
What emerged was a nuanced picture. Agility in cross-border payments is not simply about speed, but about balance: meeting digital demand while protecting trust, predictability and resilience.
Customers want the entire journey digital
A recurring theme throughout the roundtable was the demand for fully digital journeys. Participants agreed that clients, whether retail, small and medium-sized enterprise (SME) or corporate, no longer accept fragmented processes where initiation may be digital but verification or settlement still requires an offline step. Customers expect a journey that begins and ends in the same channel, usually a mobile application, without disruption.
One participant described how SMEs in particular benchmark their banks not against other financial institutions but against fintech applications. Their expectation is that paying a supplier in Thailand or Vietnam should be as easy as sending money domestically. When this is not the case, it creates dissatisfaction and prompts consideration of alternatives.
Another participant highlighted that this shift represents a broader change in competitive dynamics. It is no longer sufficient for a bank to match the service quality of peers; the real comparison is with consumer-grade applications that already set a high bar for ease of use, transparency and responsiveness. This redefinition of benchmarks is reshaping loyalties and forcing banks to rethink their service models.
"Speed and certainty in payments are converging, as users increasingly expect business remittances and payments to be instantaneous — mirroring the experience of personal transfers on digital platforms. Real-time settlement, coupled with pre-validation, accelerates transactions while improving operational efficiency and elevating customer satisfaction," said Charlie Chia, Director of Money Movement Solutions, Malaysia, Visa.
Several participants agreed that this demand for digital framing runs through the entire cross-border conversation. Whether discussing fraud, liquidity or compliance, the common denominator was the need to maintain the journey as fully digital. Even where regulatory requirements necessitate checks, customers want them embedded in the flow rather than imposed as offline interruptions.
The implication is clear: banks must prioritise the elimination of residual offline steps. Onboarding, foreign exchange booking, reconciliation and confirmation all need to be re-engineered into app-based processes. Where this is not feasible immediately, orchestration through APIs or partnerships must be used to mask complexity from the customer.
Security remains a constant concern
The drive toward seamless experiences inevitably collides with the growing threat of fraud. Participants noted that fraud in cross-border transactions has become more sophisticated, citing card-not-present fraud, chargebacks and bank identification number (BIN) attacks as growing risks. These threats are magnified when processes are simplified for the customer.
One participant observed that every time authentication is streamlined, fraudsters are quick to exploit the new vulnerability. Conversely, adding layers of security frustrates customers and undermines the very convenience that digital solutions are designed to deliver. This tension has become one of the defining challenges of cross-border innovation.
Several participants described their institutions’ experimentation with adaptive security. Behavioural analytics, device fingerprinting and anomaly detection were mentioned as ways to flag suspicious activity without creating friction for routine transactions. In practice, this means most customers experience no interruption, while outliers face additional verification.
Another participant emphasised that fraudsters are themselves agile, adapting quickly to new controls. Static defences therefore cannot be relied upon. Banks must continuously update their approaches, which makes responsiveness in risk management as important as speed in processing.
The group agreed that customers may not see the complexity of fraud prevention, but their trust depends on it. A journey that feels seamless but is unsafe will not retain clients for long. The real challenge is to keep the flow both smooth and secure, with both aspects evolving in tandem.
This led to a broader consensus: true agility involves innovating on two fronts simultaneously — creating more intuitive and convenient customer experiences, while at the same time strengthening invisible layers of protection. Neglecting either side risks undermining adoption.
Liquidity and predictability outweigh raw speed
Participants repeatedly stressed that for many corporates, speed alone is not the most important feature of a cross-border payment. Liquidity management and predictability often rank higher. Treasurers want assurance that funds will arrive in full and on time, not necessarily in seconds.
One participant explained that when payments are mis-timed, the impact on liquidity can be more damaging than a slower but predictable settlement. A supplier payment that fails to arrive on schedule can disrupt entire supply chains and trigger financial penalties. By contrast, a slightly longer but reliable timeframe is easier for corporates to plan around.
Another banker described how corporates are asking for more digital tools to control liquidity. They want to be able to schedule payments precisely, monitor status in real time and receive reliable confirmation of credit. This need for visibility and control is becoming as important as the raw transfer of funds.
The group reflected that this perspective contrasts with the expectations of retail customers and SMEs, who often prioritise instant settlement. For corporates, predictability and finality take precedence. The diversity of needs across customer segments makes it challenging for banks to design one-size-fits-all services.
Participants agreed that digitalisation can help meet these needs by embedding liquidity management features directly into customer interfaces. Allowing corporates to release payments on schedule, align them with cash cycles and view balances in real time transforms predictability into a digital service.
The conclusion was that agility in cross-border payments should not be defined narrowly as “faster.” Instead, it must encompass predictability, visibility and control, which are the true enablers of confidence for corporate clients.
Compliance obligations and legacy systems slow progress
The roundtable consistently returned to the weight of compliance. Anti-money laundering (AML) rules, know-your-customer (KYC) requirements, sanctions checks and evolving reporting standards vary across jurisdictions. Each corridor imposes its own demands, multiplying operational complexity.
One participant noted that extending into new corridors often increases compliance burdens disproportionately. Additional checks, local variations in regulation and manual reconciliation create costs and introduce delays. These are not optional, but necessary safeguards that banks must maintain.
Another participant described how legacy systems compound the problem. Many banks still rely on siloed architectures, batch processing and manual interventions that are ill-suited to seamless digital journeys. Customers perceive this as inefficiency, but in reality it reflects regulatory and technological constraints.
The discussion highlighted how data standards and automation could help. Structured information and automated screening can cut down on manual work, embedding compliance into digital flows. However, these remain aspirations rather than current practice in many institutions.
Even with these innovations, the group agreed that compliance remains a drag on agility. Banks cannot sidestep these obligations. The challenge is not whether to comply, but how to make compliance invisible to customers while still satisfying regulators.
The consensus was that embedding compliance into the design of digital journeys is the only sustainable way forward. This requires significant investment in both systems and expertise, but it is critical for achieving seamless experiences that also retain trust.
APIs and corridor strategies offer a path forward
Participants saw APIs as one of the most practical ways for banks to accelerate digital transformation without rebuilding their entire infrastructure. APIs connect banks to networks, fintechs and partners, enabling them to add new features, validations and status updates quickly.
Several participants agreed that APIs allow orchestration across multiple systems, masking legacy complexity from the customer. They can enable real-time validation of account details, reduce failed transactions and provide status updates directly through customer interfaces.
The discussion also examined corridor strategies. Within the Association of Southeast Asian Nations (ASEAN), fast payment and quick response (QR) code linkages such as those between DuitNow in Malaysia, PayNow in Singapore and PromptPay in Thailand are now seen as basic hygiene. Customers expect them to work seamlessly. Banks that cannot provide this risk falling behind.
By contrast, corridors such as China, the Gulf Cooperation Council (GCC) states, and South–South Asia were identified as areas of differentiation. These routes are less developed, with higher friction and less predictable outcomes. Banks that can establish reliable links in these corridors could gain competitive advantage.
The implication was that APIs and corridor prioritisation must be pursued in parallel. APIs provide the technical agility, while corridor strategies deliver business relevance. Both are necessary to meet rising customer expectations for seamless global reach.
Stablecoins remain experimental but highlight specific use cases
The discussion also turned to the question of stablecoins, digital tokens designed to maintain parity with a fiat currency such as the US dollar. Participants approached the subject with both curiosity and caution. While the concept of using stablecoins for cross-border settlement has attracted growing attention in the industry, the roundtable reflected a more measured view. Stablecoins were seen not as an immediate solution but as a set of possibilities that might address gaps left by traditional payment rails under certain circumstances.
One participant pointed out that stablecoins could, in principle, support 24 by 7 settlement. Traditional banking systems operate within fixed hours and are subject to cut-offs that often disrupt international flows, particularly across time zones. Stablecoins, by contrast, can be transferred at any time of day, offering continuity that conventional rails cannot match. This always-on functionality was acknowledged as potentially valuable for businesses needing to move funds outside standard operating windows.
Another example came from the African continent. A participant described how customers trading with South Africa increasingly want the ability to choose between paying in US dollars or South African rand, depending on cost and convenience. Having the option to use a stablecoin equivalent alongside these choices could allow for faster and more flexible decision-making. The anecdote illustrated how customer demand in non-traditional corridors is already shaping expectations, and how stablecoins could become part of that evolving toolkit.
The group also reflected on the role of stablecoins within the decentralised finance (DeFi) community. One participant reminded colleagues that beyond traditional finance (TradFi) and centralised finance (CeFi), there is a rapidly growing universe of DeFi transactions, where stablecoins are already the medium of exchange. It was noted that DeFi flows may represent a small proportion of global payment volumes in certain segments. Banks that ignore this usage risk being unprepared when mainstream clients begin to expect bridges between regulated systems and decentralised platforms.
Another potential use case identified was as a hedge against foreign exchange (FX) volatility. In corridors where local currencies are subject to sudden swings, a stablecoin pegged to a major currency could provide predictability and stability during the payment process. For SMEs and corporates alike, this could reduce the risk of value erosion between initiation and settlement, improving confidence in cross-border flows.
Yet despite these possibilities, participants were cautious. Most agreed that regulatory uncertainty, operational integration challenges and limited mainstream demand make stablecoins unsuitable for immediate large-scale adoption. One participant remarked that there is no need for another rail unless it demonstrably solves a real customer problem. The consensus was that stablecoins remain firmly in the realm of experimentation: promising in theory, already present in niche communities, but not yet ready to form a core part of banks’ cross-border payment strategies.
Fintechs are collaborators as well as competitors
The roundtable also explored the evolving role of fintechs. While they are often portrayed as competitors, several participants argued that they should increasingly be seen as collaborators. By partnering with fintechs through APIs, banks can accelerate innovation and improve customer experience.
One participant explained that banks bring scale, compliance infrastructure and trust, while fintechs contribute agility, user experience expertise and corridor connectivity. Together, they can deliver solutions that neither could achieve alone.
Another banker added that collaboration allows banks to extend their digital reach without compromising governance. By carefully selecting partners that meet regulatory standards, banks can improve offerings quickly while maintaining integrity.
The group noted that this ecosystem approach reflects the reality of customer expectations. Clients do not care which entity provides each component of the journey, only that it works seamlessly within their app. For banks, the practical path is to orchestrate solutions with fintechs rather than try to build every capability internally.
This change in posture — from viewing fintechs as threats to treating them as enablers — was seen as a pragmatic response to the pressure of digital expectations. Participants emphasised that collaboration is no longer optional if banks are to remain relevant in an environment defined by constant change.
The discussion closed with the view that competitiveness in cross-border payments will increasingly depend on the ability to integrate partners effectively, balancing innovation with compliance and trust. In that balance lies the future of agility.
Agility measured in confidence
The roundtable concluded that agility in cross-border payments cannot be reduced to speed alone. Customers want journeys that are fully digital, predictable in timing, transparent on costs and reliable in delivery. They also demand that security and compliance be embedded invisibly into the process.
Fintechs have demonstrated what digital-first design can achieve, and banks must catch up. But in doing so they must also preserve the safeguards that underpin trust. Participants agreed that progress will be incremental: removing offline steps, adding pre-validation, embedding compliance digitally, using APIs to connect with partners and expanding corridors carefully.
Stablecoins may eventually play a role, but immediate value lies in practical improvements customers can experience today, such as transparency, predictability and corridor interoperability. What matters most is confidence.
If customers in Malaysia can trust that every cross-border payment will be processed digitally, securely and predictably, then the industry will have succeeded in meeting the challenge. Agility in this sense is not about being the fastest, but about being the most reliable, transparent and trusted.
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