The Role of AI in Transaction Banking: Efficiency, Control, and Cross-Border Compliance

Artificial intelligence is reshaping transaction banking, creating opportunities to improve operational efficiency, enhance client service, and strengthen risk management. Realizing these benefits requires clear business objectives, reliable data, effective governance, and appropriate human oversight.

This BAFT white paper provides practical guidance for financial institutions exploring and implementing AI across payments, cash management, trade finance, and compliance. Developed collaboratively by industry practitioners, it examines priority use cases—including customer onboarding, trade document verification, liquidity forecasting, fraud detection, and sanctions screening—and the foundations needed to move from pilots to measurable business value.

The paper explores:

• Business applications and strategic opportunities: Using AI to streamline workflows, support revenue generation, and augment human capabilities.
• Governance and internal controls: Establishing accountability, explainability, model validation, and ongoing monitoring.
• Data and cross-border compliance: Managing data quality, privacy, localization requirements, and differing regulatory expectations.
• Implementation and future developments: Scaling adoption through a practical roadmap, workforce preparation, and industry collaboration, while considering emerging applications such as agentic AI.

Download the white paper to explore how your institution can advance responsible AI adoption in transaction banking.

The white paper is available at no cost to both BAFT members and non-members.

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