Resilience, trust and cooperation are key as financial institutions navigate shifting international dynamics and economic volatility. To maintain operational continuity and client satisfaction, even in a fragmented world, agility and transparency are more important than ever.</em></p> Our world continues to evolve at a dramatic and unprecedented pace. Tariffs, combined with economic uncertainty and volatility across the globe are the order of the day. Financial institutions seeking to operate on an international scale and contribute to global economic development face financial fragmentation1</sup> along with the ongoing uncertainty, and this presents challenges for institutions facilitating global trade and cross border payments2</sup>. Navigating the state of play to ensure these headwinds are effectively managed and mitigated with effective strategies is fundamental to maintain operational efficiency, client satisfaction and business continuity.</p> Resilience is key. To sustain success in these circumstances financial institutions need to be flexible and agile enough to address both the current elevated and anticipated volatility, but also focus on opportunities for risk-adjusted value creation3</sup> when making business decisions. Ensuring systems, personnel and structures are in place to identify, measure, manage and mitigate these risks is crucial to maintain operational continuity. This involves allocating resources efficiently across clearing channels4</sup>, ensuring robust cross-border settlement capabilities, and embedding strong cybersecurity frameworks. Additionally, evaluating operational readiness by simulating "what if" scenarios is vital to ensure continuity plans are not theoretical but executable. Clients rely on financial institutions to move money seamlessly across borders in both steady and volatile times - making resilience a true differentiator.</p> In times of uncertainty, trust is essential to maintain robust client partnerships. Financial institutions can cultivate trust by providing transparency in areas such as operational processes and regulatory compliance. Offering secure, real-time visibility into cash positions, liquidity and transaction flows helps reassure treasurers as they navigate volatile markets. Additionally, integrating advanced fraud prevention measures and AI-powered monitoring tools enhances confidence in the speed and security of payment transactions. Such steps strengthen the role of financial institutions as trusted allies, irrespective of the prevailing economic conditions.</p> Financial institutions should embrace avenues that foster cooperation. With increasing regulatory diversity, regional payment schemes and macro conditions affecting cross-border trade and payments, one timely approach is enabling cross-border data exchange and adopting standardised message formats like ISO 20022 for international payments. This enables banks to promote interoperability and seamless integration across payment systems, thereby supporting harmonisation5</sup>. Financial institutions can also serve as bridges to align client experiences across markets by integrating with multiple domestic instant payment systems, supporting emerging digital currencies and engaging with regulators to advocate for interoperability standards. Adopting the role of connectors instead of solely service providers can truly enhance collaboration.</p> Resilience, trust and cooperation are sustained through strong relationships. Clients require more than mere execution; they seek meaningful dialogue, informed perspectives and genuine partnership. Looking ahead, it’s crucial that financial institutions clarify complex matters, remain attentive to shifting requirements and proactively offer forward looking solutions to address emerging challenges. Amid increasing fragmentation in global markets, both trust and institutional dependability serve as fundamental pillars sustaining international trade and payments.</p> This blog is part of a series from the participants of the </em>STAR scholarship programme</em></a>, which brings together women in finance from around the world and champions the leaders of tomorrow. The opinions expressed reflect the personal views of the author and not their organisation, Sibos or Swift.</em></p> Sources</u></strong></p> 1. https://www.imf.org/en/Blogs/Articles/2023/04/05/geopolitics-and-fragmentation-emerge-as-serious-financial-stability-threats</a>2. https://www.imf.org/en/Publications/GFSR/Issues/2023/04/11/global-financial-stability-report-april-2023?cid=bl-com-spring2023flagships-GFSREA2023001#Chapter-3:-Geopolitics-and-Financial-Fragmentation:-Implications-for-Macro-Financial-Stability</a>3. https://www.mckinsey.com/capabilities/geopolitics/our-insights/a-proactive-approach-to-navigating-geopolitics-is-essential-to-thrive</a>4. https://www.bny.com/corporate/global/en/insights/global-real-time-cross-border-payments.html</a>5. https://www.fsb.org/2024/10/g20-roadmap-for-enhancing-cross-border-payments-consolidated-progress-report-for-2024/</a></p> </div> </p>