Specifically, the front-end part of fintech, including consumer visibility into FX margins and fees, seems to have improved significantly. However, the back-end, dominated by legacy correspondent banking networks, still lags behind, causing delays and inefficiencies in international payments.

The solution you’re pointing towards is Central Bank Digital Currencies (CBDCs) or some form of decentralized solution that can level the playing field for national networks and improve the speed and tracking of cross-border payments. The correspondent banking frameworks are slow and outdated, leading to inefficiencies, but CBDCs or new interoperable systems like blockchain-based infrastructure could change that.

CBDCs, in particular, have the potential to be a game changer. By eliminating intermediaries in cross-border payments and creating more direct, faster, and transparent transaction paths, central banks could effectively modernize the infrastructure and reduce costs. It would also increase financial inclusion and allow for better regulatory oversight.

Overall, the success of these changes depends on the collaboration between central banks, governments, and international organizations to create harmonized standards and ensure interoperability between national payment systems and CBDCs.