NEW YORK — Tech provider FIS debuted its embedded finance platform, Atelio, in its Investor Day presentation today as its tech leaders discussed growth strategies.
Atelio allows software companies, enterprises, banks, fintechs and developers to embed financial capabilities into their platforms via API and software development tools, Tarun Bhatnagar, president of platform and enterprise solutions at FIS, said during the presentation.
The market is moving toward embedded finance capabilities and the industry has two options, “one is you can fight that trend, the other is you could just say, ‘How do I accelerate that trend and make it happen next year, not 10 years from now’,” Bhatnagar told Bank Automation News.
Atelio, a cloud-native platform, is provided to banks and other businesses through APIs, Bhatnagar said. Those who are not FIS customers can also use the solution.
KeyBank is using the solution to provide a virtual account management platform to its fintech partners, a KeyBank spokesperson said during the FIS presentation.
“This partnership between KeyBank and FIS will bring comprehensive financial management solutions directly to customers who can live at the bleeding edge of transformation,” the spokesperson said.
BIGGER PICTURE: Atelio arrives on the heels of the first-quarter launch of FIS’ card fraud detection solution, SecurLOCK, according to a March release from the company.
FIS teamed up with AI solution provider Stratyfy to create SecurLOCK, which helps identify and prevent fraudulent card transactions using AI, according to that release.
BY THE NUMBERS: FIS reported in its Q1 earnings May 6:
- Total revenue of $2.4 billion, up 3% year over year;
- Operating loss of $361 million, up 16% YoY; and
- Net earnings of $724 million, up 417% YoY.
OF NOTE: FIS closed the sale of global payments processor Worldpay in January, incurring a loss of $466 million, according to the company’s earnings report.
In July 2023, the company announced plans to sell Worldpay for $18.5 billion to private equity firm GTCR, maintaining a 45% noncontrolling stake in the company, according to the report.
According to a Bank of America Securities report, published May 6, the sale of Worldpay gives FIS cash to improve operations while enabling Worldpay to acquire other providers to improve its service offerings.
FORWARD LOOK: The company aims to keep expenses under control through its cloud strategy, have a sustained capital expenditure to develop new technology, and explore merger and acquisition opportunities, Chief Executive Stephanie Ferris said today during the Investor Day presentation.
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