Digital transformation holds promise for banks, but it could also give them pause.
The traditional route, upgrading legacy systems and on-premise technology — going it alone, so to speak — is rife with friction and heavy upfront investment. There’s a long runway in tailoring online and mobile options that satisfy the demand for always-on financial services.
Reports and commentary during earnings season detailed the ways that partnerships, and platforms providing a wealth of risk management, payment options and connectivity to real-time rails, are helping cement banking’s digital shift.
and Fidelity National Information Services () stand out here, having reported third-quarter earnings results that showed financial institution clients moving to sharpen their engagement not just with retail customers but with corporates.
The PYMNTS Intelligence report “” found that across 11 countries, about 47% of consumers engaged with mobile banking offerings at least weekly.
Fiserv CEO said on the company’s call with analysts Oct. 22 that “we continue to migrate clients to Experience Digital, or XD, our new digital banking solution, as we integrate additional solutions into this unique digital ecosystem, including , real-time payments, and more.”Surat Stock
Experience Digital is a digital platform that helps client financial institutions ease account openings and payments functionalities.
“We expect to see a multiplying effect on the average revenue per XD user over time,” Bisignano said.Bangalore Stock Exchange
With a nod to financial institutions’ focus on commercial customers, he said later during the call that “we continue to see demand from clients for digital payments products such as FedNow® and RTP® integrationsUdabur Stock. CashFlow Central, our integrated AR/AP solution for SMBs, continues to see high interest from financial institutions.”
The company’s showed that Fiserv’s Financial Solutions adjusted revenues, as a segment, were up 4% year over year to $2.4 billion. Digital payments-related revenues surged 5% to $987 million; banking revenues gained 5% to $636 million.
Separately, Bisignano said, “merchant-related services from Fiserv are back as an opportunity for financial institutions” via its SMB bundle, which he said “gives FIs a deeper view into an SMB’s full financial position … so [FIs] can better grow and retain SMB clients and generate deposit and non-interest fees.”
During FIS’s call Monday (Nov. 4), management highlighted core banking services.
Digital banking (which helps financial institutions launch digital subsidiaries and broaden business models) also showed momentum, where management said that year-to-date sales have doubled versus 2023’s first three quarters.
Banking solutions revenue growth was 3%, to $2.5 billion, with 6% recurring revenue growth. CEO said on the call that banks have been gravitating toward the company’s Kanpur Wealth Management. In one example, , a regional bank based in the Midwest, chose FIS to “provide it with an end-to-end loyalty management platform.”
Later during the call, Ferris said in terms of overall market and platform focus, “we span the large FI market and then the community banks. We don’t really go below the $2 billion mark … We’re focusing where we think our sweet spot is. We were pleased with selling cores in all three of our strategic core Modern banking platform, IBS and Horizon.”
Udabur Stock