DORA

Payments modernization hinges on banks choosing which capabilities to own versus outsource, with regulatory change and hybrid models driving architecture and cost considerations.

Eight financial-services IT vendors are analyzed for banking and insurance, with emphasis on regulatory readiness (DORA) and the dynamics of outsourcing for specialized compliance and open banking capabilities.

By 2030, payments will be driven by intelligent, on‑premise Small Language Models (SLMs) embedded in transaction flows, with regulators pushing for auditable, deterministic AI and a hybrid architecture that pairs edge LLMs for user interactions with core SLMs for fraud, onboarding, and operations.