Technology provider FIS is now certified to send and receive payments on the FedNow payments rail as demand for the rail grows. 

FIS has 215 clients in contract or in the pipeline for the Federal Reserve’s payments rail, Chief Executive Stephanie Ferris said during the company’s fourth-quarter earnings call today.

“The banks are definitely focused on enabling [FedNow],” she said. 

BIGGER PICTURE: As of Feb. 1, FedNow had 474 financial institutions live on the rail, including BNY Mellon, Citigroup, JPMorgan and Wells Fargo, according to the Federal Reserve’s website. 

BY THE NUMBERS: In Q4, FIS reported: 

• Revenue fell 1% year over year to $2.5 billion; 
• Revenue from banking solutions remained flat YoY at $1.7 billion; and 
• Net earnings were $251 million. 

TRANSACTIONS: FIS saw continued increased demand for its banking solutions during the quarter, Ferris said.  

Hancock Whitney, First Citizens Bank and Bank of Montreal are now using FIS’ Digital One Studio solution, Ferris said, noting, “Our sales pipeline continues to expand with demand from large financial institutions increasing in the double digits.” 

“These banks have all deployed solutions from our digital suite, which offers deeper personalization capabilities in support of their deposit growth, product cross-sell and customer experience improvement objective,” she said. 

NOTEWORTHY: Capital One announced its plans to acquire Discover Financial Services last week and expects to spend $2.8 billion on integration costs.  

Although the integration is expected to be expensive, Capital One and Discover have one element on their side: They both use FIS as a core provider, according to data provided to Bank Automation News from FINavigator. Capital One is on FIS Systematics core and Discover is on FIS MISER. 

When two banks involved in a merger are on core systems from the same provider, the integration can be simpler to accomplish, Tom Ruppel, vice president and business strategy manager at tech provider FIS, previously told BAN. 

[stock_market_widget type=”inline” template=”generic” assets=”FIS” markup=”{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}” api=”yf”].

Join us for Bank Automation Summit U.S. 2024 in Nashville, Tenn., on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.