The T+1 settlement cycle is not a deadline – it’s an opportunity

T+1 is more than a technical adjustment, it’s also a chance to modernize operations, reduce systemic risk, and build readiness for a future defined by real-time processes and faster financial cycles.

Reducing the settlement cycle from two days to one brings clear benefits. It shortens exposure to counterparty risk, increases capital efficiency, and aligns Europe with markets like the US and Canada, which have already completed the transition.

Faster cycles require faster operations

At the same time, shorter cycles mean tighter operational windows. Affirmation, matching, funding, foreign exchange must all be completed within hours, not days. That increases the pressure on internal coordination, automation, and data flows.

Without the right level of operational efficiency, the risk of settlement failures grows. So do the associated penalties under regimes like CSDR. What was once manageable friction can become a costly obstacle.

Building infrastructure that can keep up

The transition to T+1 is also a stress test and banks operating on legacy systems or manual workflows may find themselves at a disadvantage.

Standardized SaaS solutions with strong automation, modular design, and real-time capabilities are better placed to handle the demands of a shorter cycle, and enable banks to scale into future settlement cycles.

At Tietoevry Banking, we’ve worked with financial institutions across the Nordics to modernize their post-trade operations through our suite of platform products, in anticipation of these changes.

High powered and standardized solutions are freeing up capacity to focus on the customer

Ultimately, the goal of modernizing post-trade infrastructure is not just operational performance or regulatory compliance, it’s about creating space to focus on what matters most: the customer.

When transactions are processed more reliably, when funding is aligned in real time, and when systems work seamlessly behind the scenes, banks and financial institutions can spend more time delivering exceptional customer experiences. That means more resources to improve the client value and experience, innovating in front-end services, and deepening customer relationships.

Several of our customers across the Nordics have successfully leveraged Tietoevry Banking’s post-trade solutions to launch cutting-edge trading services and onboard new customer segments - enabling scalability and differentiation:

·       One large Nordic customer has developed a next-generation trading service targeting a new customer segment of theirs. The solution built entirely on top of our post-trade solution delivers a seamless and intuitive experience powered with advanced set of services.

·       Another institution has successfully consolidated and onboarded new customer segments and by that enabling consistent service delivery, faster time-to-market, and simplified compliance across business lines.

·       Our platform’s cross-border capabilities have also empowered customer of ours to expand into new geographical markets with minimal friction, supporting multi-jurisdictional operations while maintaining a high standard of automation and control.

These examples show how modern post-trade infrastructure is a strategic enabler for delivering differentiated, customer-centric services at scale.

Real-time settlement is coming faster than many think

T+1 may feel like a major shift, but in many ways, it’s a steppingstone toward a much more accelerated financial future. We’re seeing early pilots of T+0 settlement, where transactions are cleared and settled instantly. Tokenized assets, programmable money, CBDCs and distributed ledger technologies are challenging long-held assumptions about how markets operate.

These developments won’t become standard practice overnight, but the pace is accelerating. That’s why building T+1 capabilities is not just about today’s requirements, but rather about creating the foundation needed to stay competitive as the market moves toward real-time.

The solutions to enable this shift already exists and allow financial institutions to move beyond compliance and lay the groundwork for a more client-centric future, and by doing so gain a competitive edge.

Want to discuss what this means for your organization? Feel free to reach out!