Most banking leaders considering AI often ask which vendor to choose. Booshan Rengachari, however, focuses on a different question: where should AI actually sit within payment systems? Rengachari founded Finzly in 2018 to modernize the outdated infrastructure many banks still rely on. Over the years, he noticed a common pattern: banks try to add AI as an afterthought, running pilots and seeing some progress, only to hit a wall. The problem isn’t just technology but architecture — AI can’t access the real-time data where decisions happen.

Reimagining Payment Infrastructure

Finzly’s approach is about embedding AI directly into the payment flow rather than layering it on top. In October 2025, they launched Agentic Galaxy, an innovative AI system that operates inside the payment process itself. Early results show a dramatic shift: operations teams now resolve transaction exceptions in seconds instead of hours, while still maintaining human oversight for compliance. This embedded AI allows banks to move faster, smarter, and more efficiently.

Most existing solutions provide dashboards or analytics after transactions are completed. They help identify issues but don’t influence the transaction in real time. Rengachari sees this as a fundamental architecture flaw. True modernization requires AI to be part of the payment process, making decisions as the transaction happens. This shift from “AI as an assistant” to “AI as an active participant” is key to unlocking faster, more reliable payments.

The Limitations of Traditional Payment Systems

Many banks operate on legacy core systems, often mainframes built decades ago. These systems are designed for a world of batch processing, not real-time payments. ACH settles overnight, wires require manual reviews, and instant payments are still a challenge. As new technologies like blockchain, tokenized assets, and embedded banking emerge, the old systems struggle to keep up.

Banking’s reaction has often been to bolt on new solutions, creating complex patchworks of different processors and protocols. This approach leads to increased complexity, slower innovation, and difficulty scaling. Rengachari argues the real fix is to build a unified, flexible platform that can handle all types of payments through a single API. Finzly’s BankOS aims to do just that — offering a one-stop platform for ACH, Fedwire, SWIFT, RTP, FedNow, and even tokenized assets. This consolidation gives banks full control and visibility, simplifying their infrastructure and opening the door to real-time, embedded payment capabilities.

The Future of Payments and AI

Rengachari believes that embedded AI will be a game-changer for payments. Instead of just assisting humans, AI agents will operate inside the payment flow, making decisions instantly. This approach not only speeds up transaction processing but also improves accuracy and compliance. Early deployments of Agentic Galaxy show that banks can drastically reduce investigation times and resolve issues in seconds.

He also sees an exciting future with stablecoins and programmable money. These innovations suggest a shift toward a more flexible and efficient payment infrastructure where digital assets can be seamlessly integrated into existing systems. Rengachari’s bet on these technologies shows he believes the future of banking lies in fully integrated, intelligent payment platforms that adapt to the needs of a digital economy.

In summary, the move towards embedded AI and modernized infrastructure is reshaping how banks process payments. It’s about building systems that are agile, real-time, and intelligent from the ground up. Finzly’s vision exemplifies this transformation, promising faster, smarter, and more reliable banking for the future.

Inspired by

• https://justainews.com/industries/finance-and-banking/interview-booshan-rengachari-founder-and-ceo-of-finzly/

Sources

• finzly.com