51% of Banks Face Rising Costs as Manual Payment Inefficiencies Block Real-Time Progress
By Lauren Towner · 2 July 2026
In brief: Aqua Global research reveals 51% of banks face rising costs due to payment inefficiencies, with 74% citing manual processes as the primary barrier to achieving real-time payment capabilities.
| Survey Sample | 150 European banking IT leaders |
|---|---|
| Cost Impact | 51% report rising operational costs |
| Reconciliation Delay | 29% take more than 24 hours to resolve exceptions |
| Automation Rate | 13% average across core payment functions |

Quick Summary
New research from Aqua Global reveals that 51% of banks are experiencing rising operational costs due to payment inefficiencies. Despite the demand for real-time processing, 74% of banking IT leaders identify manual handling as the primary barrier, with 29% of institutions taking over 24 hours to resolve reconciliation errors.
How Do Payment Inefficiencies Impact Bank Profitability?
Rising operational costs are now a direct consequence of failing to automate core financial messaging. According to the data, 51% of banks report that payment inefficiencies are driving up expenses, while 74% of leaders note that the cost of manual intervention is outpacing investment in automation. This financial strain is compounded by regulatory pressure, as 75% of respondents believe upcoming changes will penalize institutions reliant on manual workflows.
- 51% of banks report increased costs from operational friction.
- 74% of leaders cite manual handling as the top barrier to real-time payments.
- 65% of staff time is spent repairing data rather than producing it.
What Are the Main Barriers to Real-Time Payment Adoption?
Legacy system limitations remain the most significant hurdle, affecting 63% of banks that still depend on outdated messaging formats. These fragmented infrastructures make it nearly impossible to achieve the unified messaging required for modern scale. Furthermore, 71% of IT leaders admit they lack end-to-end visibility across the payment lifecycle, leading to a culture of "firefighting" rather than innovation.
- 63% of banks use messaging systems that should have been retired.
- 72% of respondents fear legacy tech will make Swift changes more expensive.
- Only 7% have fully automated liquidity and cash position monitoring.
How Can Banks Resolve Reconciliation and Data Quality Issues?
Poor-quality data from upstream systems is the leading cause of reconciliation mismatches, with 29% of banks taking more than a day to fix these errors. To combat this, 81% of banking professionals believe data quality will become a more significant competitive differentiator than processing speed itself. Transitioning to automated orchestration allows banks to bypass the "rip and replace" model, integrating ISO 20022 standards into existing workflows to reduce risk.
- 29% of banks take over a day to resolve reconciliation exceptions.
- 81% prioritize data as a key competitive differentiator.
- 73% view unified messaging as mandatory for future scalability.
FF NEWS TAKE:
This report highlights a sobering reality: payment inefficiencies are no longer just a back-office headache; they are a systemic threat to bank margins. While the industry talks a big game about real-time rails, the reliance on manual workarounds and spreadsheets proves that many are still operating in the 1990s. Aqua Global’s data suggests that the gap between the "haves" and "have-nots" of automation will define the next decade of banking survival.
Frequently asked questions
Why are banking operational costs rising?
Operational costs are rising for 51% of banks due to payment inefficiencies and a heavy reliance on manual intervention. As payment volumes and regulatory requirements increase, manual workflows become more expensive and difficult to scale, with 74% of IT leaders noting that the cost of manual handling is outpacing automation investment.
What is the biggest barrier to real-time payments?
The biggest barrier to real-time payments is manual payment handling, cited by 74% of banking IT leaders. Legacy infrastructure also plays a major role, with 63% of institutions still depending on outdated messaging formats and systems that hinder the speed and transparency required for real-time processing.
How long does it take banks to resolve reconciliation errors?
According to Aqua Global, nearly one in three banks (29%) require more than a full day to resolve reconciliation mismatches. These delays are primarily caused by poor-quality data from upstream systems, messy legacy infrastructure, and multiple 'versions of the truth' across disconnected departments.
About the companies
Companies in this story: AQUA GLOBAL
People in this story: Nick Fernando, Cian Fernando