Core banking modernization: AI deployment

What happened: Banco do Brasil won the 2026 Celent Model Bank of the Year Award for its AI and data analytics implementation, driving a customer-centric strategy. Mastercard launched Agent Pay for Machines, enabling autonomous agents to move money across cards, bank accounts, and stablecoins. Visa announced AI-agent payments and stablecoin settlement tools, integrating programmable money into its commerce roadmap. Deutsche Bank reported AI accelerating tech project times from years to months. Banco Santander launched an AI-powered commerce infrastructure, and Bank of Nova Scotia invested $2.5 million in AI education and research.

Market impact: Banks and payment networks are increasingly adopting AI to modernize core banking and drive commerce. This shift could enhance operational efficiency, customer experience, and payment flexibility. Companies like Banco do Brasil, Mastercard, Visa, Deutsche Bank, and Banco Santander are at the forefront of this trend, potentially gaining a competitive edge. The AI in banking sector is expected to reach $40.6 billion by 2025, growing at a CAGR of 30.8% from 2020 to 2025.

What to watch next: Investors should monitor Visa's and Mastercard's earnings in Q3 2026 for updates on AI-agent payments adoption. Deutsche Bank's progress in AI-driven productivity gains will be in focus during its Q3 2026 earnings call. Additionally, the evolution of regulatory frameworks around AI in banking, such as the EU's proposed AI Act, will shape the narrative's trajectory.