FIS Adds Millions of Accounts on Strong Core Banking Momentum

Fidelity National Information Services, Inc. FIS recently reported record first-half core banking wins across its community and regional bank business, adding millions of accounts. The deals covered new client wins, expansions with existing customers, platform consolidations and migrations from older systems.

Banks selected FIS for account origination, digital banking, core modernization, payments, fraud and financial-crime tools. Open Bank, part of OP Bancorp OPBK, publicly chose the FIS Origination Suite for its digital transformation. FIS is also pushing AI deeper into banking through Policy Optimizer 2.0, AgentEdge and its Financial Crimes AI Agent, developed with Anthropic and currently being piloted directly with core banking clients.

The announcement shows that smaller banks are moving beyond one-off technology upgrades and choosing broader, connected platforms. FIS said its community and regional banking franchise serves thousands of clients. Banks are now facing higher fraud risk, faster payment activity, rising technology complexity and pressure to improve digital experiences.

A provider that can connect core systems, onboarding, payments, fraud tools and AI can simplify vendor management. The wins also suggest FIS is strengthening its position where modernization spending remains a clear priority.

The takeaway is better revenue visibility for FIS. Core banking relationships can be valuable because they tend to be long-term and create openings to sell additional digital, payments, fraud and AI products. Expansions within existing FIS clients could also lower customer-acquisition costs and deepen recurring revenue.

Adding millions of accounts increases the base over which FIS can monetize services, while platform consolidation may improve retention. The wins will likely support organic growth and cross-selling opportunities.

FIS’ Price Performance

Shares of Fidelity National have declined 42.5% year to date, underperforming the 11.5% fall of the industry.

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Zacks Rank & Key Picks

FIS currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader payments space are Usio, Inc. USIO and Repay Holdings Corporation RPAY, both currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for USIO’s current-year earnings indicates an 88.9% year-over-year improvement. USIO has witnessed one upward estimate revision over the past month against no cuts. The consensus estimate for current-year revenues indicates 13.9% year-over-year growth.

The Zacks Consensus Estimate for Repay Holdings’ current-year earnings indicates 26.8% year-over-year growth. RPAY witnessed one upward estimate revision over the past 60 days and no downward movement. The consensus estimate for current-year revenues implies a 60.1% year-over-year jump.

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This article originally published on Zacks Investment Research (zacks.com).

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