Core provider FIS saw a slight increase in banking solutions revenue in the third quarter as demand for its technology offerings remained strong amid economic uncertainty.

The fintech reported $1.6 billion in banking solutions revenue, up 4% year over year and 23% sequentially. Total revenue clocked in at $3.6 billion, a 3% YoY increase, according to today’s Q3 earnings presentation.

“Strength was driven by continued demand for our next-generation platform solutions across core, issuer, digital and wealth management,” FIS President Stephanie Ferris said during the call. Ferris will add chief executive to her title on Jan. 1, 2023, when current CEO Gary Norcross will become executive chairman of the board at FIS.

The Jacksonville, Fla.-based tech provider also saw increased interest in its Worldpay for Platforms software-as-a-service (SaaS) solution, which launched during the quarter, Ferris said.

Additionally, clients flocked to FIS’ Payments One card management platform, she said, noting that an unnamed global card provider selected the platform for its cross-border prepaid consumer and corporate solutions business. FIS’ clients include $388.4 billion Virginia-based Capital One, $119 billion Australia-based ANZ Bank, and $50 billion Valley Bank.

Reducing operating costs

Meanwhile, FIS is starting to prepare the business for deteriorating macroeconomic conditions in the global economy, Ferris said.

“We are taking immediate action to permanently reduce the cost structure of the company via our enterprise transformation program,” she said.

The program consists of a reevaluation of the company’s vendor spend, outsourcing strategies and “rightsizing the current workforce,” Ferris added.

Looking ahead, FIS aims to save $500 million through the program, she said, noting the company is in the early stages of planning and will release more details in early 2023.

Spike in digital banking demand

Demand for FIS’s digital banking solutions remained strong during the quarter, following a Q2 trend.

According to the company’s “Not so Fast, Gen Z: Millennials Lead the US for Fintech Adoption” report released Wednesday which surveyed 1,000 American consumers, 32% of millennials surveyed say they are likely to use banking services from a fintech or neobank in the next 12 months, along with more than 22% of Gen Z, 13% of Gen X and 5% of baby boomers.

“Between the desire to tap into seamless shopping experiences like those in social media apps or taking advantage of the discounts and savings available through loyalty apps, the signal from millennials and Gen Z is that there is significant potential for businesses to embed financial services within these channels,” Taira Hall, senior vice president of embedded finance, B2B and strategic innovation at FIS, said in the report.

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