Bank Back-Office Functions Tested as Risks Mount, Deloitte Says

The staid back-office mechanisms at banks that handle trillions of dollars of payments daily will be tested by geopolitical risks and macroeconomic uncertainties plaguing the globe, according to a report by Deloitte.

The current turmoil, including Russia’s invasion of Ukraine, has also underscored the need for banks to add more checks and balances to their cross-border payment offerings, the consulting firm wrote in a report released Wednesday.

Transaction businesses, which typically include treasury and cash management, corporate payments, trade finance and asset servicing, are often a stable source of revenue for banks. The functions drew much attention this year ...