The modernization of core banking tools and loyalty point redemption mechanisms are key priorities for banking technology provider FIS. 

In a fourth-quarter earnings call last week, the Jacksonville, Fla.-based company reported continued growth of its next-generation banking platforms, along with its new agreement with PayPal allowing consumers of client institutions that participate in FIS’ Premium Payback solution to use their points to make payments to millions of PayPal merchants globally.

FIS reported $3.3 billion in revenue, up $2.1 billion year over year, with organic growth at 7%. One-third of revenues were from merchant solutions, nearly half were from banking solutions, and one-fifth were from capital market solutions.

CEO Gary Norcross told investors that FIS is making progress scaling its modernized banking platforms, including its IBS Core Platform, which uses open architecture and APIs for real-time integration and the company’s Modern Banking Platform, a cloud and API-based solution.

“Several years ago, we embarked on a transformational modernization journey,” Norcross said. “We began an ambitious new software development cycle [and] re-architected our solutions to be open, modular and cloud-based, and we also began modernizing and consolidating our technology delivery platforms.” 

Norcross highlighted three “significant wins” relating to the adoption of its core banking platforms by major institutions, including: a top 10 bank he wouldn’t name; MUFG Union Bank, a top 20 bank; and First Republic, which ranks among the top 30 institutions in the U.S. According to Norcross, the three new clients brought combined total assets of more than $600 billion under FIS’ wing. 

MUFG, and the top 10 bank, recently adopted FIS’ Modern Banking Platform.

“It’s all about cloud, native cloud and the ability to move data quickly, safely, securely in a real time, in a fashion that helps drive that buying experience,” Chris Higgins, chief information and operations officer at MUFG Union Bank, recently told Bank Innovation, in reference to its shift to the FIS cloud-based Modern Banking Platform.

Meanwhile, First Republic’s adoption of IBS Core last month will reportedly enable new data analytics capabilities for the bank.

See also: FIS to help stand up digital-only banks within 90 days

On the payments front, FIS this week announced it’s partnering with PayPal to allow cardholders whose institutions are part of its Premium Payback loyalty network to spend their rewards points at PayPal merchants. The company also plans to roll out a loyalty points redemption arrangement with a yet-to-be-announced top three U.S. retailer.

The partnership will allow PayPal to extend its rewards payment capabilities to more customers, Jim Magats, senior vice president of global payments at PayPal, said in a statement.

FIS said it believes its rewards payment capabilities are strategic differentiators for the technology provider as it seeks to retain and grow market share among client institutions. 

“PayPal has partnerships in place with Citi, Discover and American Express, and [FIS] is the first core processor that is doing this kind of partnership with PayPal,” Mladen Vladic, general manager for loyalty at FIS, told Bank Innovation. “It’s allowing customers of smaller financial institutions access to the same benefits that Citi, Discover and American Express cardholders have.”

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