AutoRek’s industry research reveals that firms are racing towards real-time payments while running on manual operations
LONDON & NEW YORK--(BUSINESS WIRE)--80% of payments organizations experience moderate to significant operational disruption from fragmented data, according to new research from AutoRek. Despite heavy investment in front-end innovation like AI and instant payments, back-office operations remain stuck in manual processes – creating a critical gap that undermines growth, scalability and innovation.
The 2026 Payments Survey, based on 250 interviews with senior finance sector managers across the UK and U.S, highlights what AutoRek calls "The Great Payments Paradox": while 96% of firms are adopting AI and 67% say instant payment networks are accelerating the need for real-time controls, 69% cite manual processes and limited automation as their biggest scalability constraint.
“The findings of The Future of Payments Operations 2026 report highlight both the strength of the UK payments sector and the scale of the opportunity that lies ahead. UK firms continue to demonstrate ambition in adopting real-time payments, AI, and emerging settlement rails, reinforcing the UK's position as a leading global payments hub.” said Benjamin David, Head of Intelligence at The Payments Association “However, the research also underlines the importance of ensuring that operational capabilities, data infrastructure, and governance frameworks evolve in step with front-end innovation. For payments leaders, this presents a clear strategic priority: sustained competitiveness will depend not just on product and market expansion, but on building resilient, scalable operational foundations that support growth over the long term.”
Fragmented data and manual processes block AI’s value
The survey reveals that two-thirds (34%) of firms report significant disruption to reconciliation and monitoring due to fragmented data. Despite industry-wide modernization efforts, over half (54%) of businesses remain only partially implemented on ISO 20022, adding increased complexity when richer data should reduce it.
These data and back-office issues directly constrain firms' ability to scale AI investments. While AI adoption has increased, confidence in scaling remains an issue. Top concerns include data security and regulatory compliance (61%), implementation costs (50%) and legacy system integration (46%). Firms will struggle to extract value from broken foundations.
"AI doesn't fix broken data. It amplifies whatever foundation it's built on," said Jim Sadler, Chief Product, Technology and Operations Officer at AutoRek. "Without clean, reconciled data, front-end AI investments cannot deliver reliable outcomes."
Operational gaps create regulatory and competitive risk
This operational unpreparedness also has a direct impact on regulatory readiness. With safeguarding deadlines approaching, only 33% of firms say they are fully prepared for upcoming compliance requirements, while 84% expect their controls to require updates within 12 months. Firms are struggling to build the real-time controls regulators demand on fragmented foundations.
As firms expect 24% of payment volume to flow through blockchain-based rails by 2030, the gap between operationally mature organizations and those struggling to keep pace will likely widen. Without automated back-office operations and unified data foundations, firms will struggle to meet evolving regulatory requirements or compete effectively in an increasingly real-time payments landscape.
“Forward-thinking firms will treat regulatory readiness as a competitive differentiator, rather than just a compliance exercise," said Nick Botha, VP of Payments and Retail Banking at AutoRek. "The payments industry is not short on ambition and innovation; it is short on operational alignment. 2026 will determine whether firms can close the gap between real-time strategy and manual reality - separating market leaders from those left behind.”
About AutoRek
AutoRek is an end-to-end financial controls platform that automates reconciliations, data management, and reporting. Trusted by some of the biggest names in global finance for 30 years, AutoRek helps asset management clients with over $6.5 trillion in assets under management, insurance clients with over $1.3 billion in gross written premium, and payment clients processing over $4 trillion in annual transactions. The company delivers a 50%+ reduction in operational costs and 90%+ less time spent on reconciliations. For more information, visit www.autorek.com.
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Jessica Cunningham
jessica.cunningham@autorek.com
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