Core provider FIS is looking to M&A and strategic partnerships to expand its next-gen banking offerings in 2025.

“We feel like we’ve got our mojo back in core [banking], but we are increasing specialty in high growth areas,” FIS President and Chief Executive Stephanie Ferris said today during FIS’ fourth-quarter earnings call. “Whether it’s commercial lending or digital, we see demand.”

The Jacksonville, Fla.-based company reported a high demand for its digital and core banking solutions and added multiple banks to its client pool in 2024, Ferris said.

The company reported revenue of $2.6 billion, up 4% year over year and a banking solution revenue of $1.7 billion, up 2% YoY, according to the company’s earnings report.

During the quarter, FIS onboarded:

• $22 billion Centennial Bank and an undisclosed Midwestern community bank integrated the FIS’s Integrated Banking Solution (IBS) platform;
• $952.8 billion U.K.-based bank NatWest to integrate several new products for payments and lending, she said.

Additionally, a large U.S.-based regional bank in Q4 also chose FIS’ digital investment platform, transfer agency solution for comparing investor records and transactions, Ferris said, without disclosing the bank. “The bank will be migrating to FIS from a competitor solution that has been servicing the bank for decades, moving to digital,” she noted.

BIGGER PICTURE: On the heels of a 70% year-over-year surge in digital product sales, FIS is adding Microsoft’s gen-AI powered TreasuryGPT platform, Ferris said during the call. The platform enables corporate treasurers to access and synthesize large pools of data to improve cash management, Ferris said.

Other financial institutions, like the $29 billion BNY, are also deploying AI for treasury management capabilities. However, BNY is working with software provider Nvidia to streamline its treasury management operations.

OF NOTE: FIS today announced it has tapped payment network Affirm to integrate the buy now, pay later service provider’s solution into FIS bank clients’ debit card programs via its digital banking and mobile app platforms. Demand for buy now, pay later services is growing rapidly, Ferris said, with more than 86 million Americans using such services in 2024.

BY THE NUMBERS: In Q4, FIS reported:

• Capital market services revenue grew 9% YoY to $821 million; and
• Net earnings were $281 million, up 11% YoY;

FIS attributed 60 basis points of incremental revenue growth to its $300 million acquisition of digital banking and cash management solutions provider Dragonfly in November.

FIS in December also purchased U.K.-based supply chain platform Demica for the same price and expects the acquisition to strengthen its supply chain financing, Ferris said.

FORWARD LOOK: FIS expects $10.4 billion to $10.5 billion in full-year 2025 revenues compared to $10 billion in 2024. Digital sales momentum will continue, propelled by recent acquisitions and technology partnerships, Ferris said.

“Every financial institution is focused on their digital experience, which is why we continue to invest both organically and from an acquisition standpoint,” she said.

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