FIS Unveils New Framework to Help Banks Modernize
Financial technology company FIS has announced a new initiative designed to assist banks in their modernization efforts. This framework, launched on September 17, aims to align financial institutions’ modernization strategies with their specific needs.
Peter Boyer, FIS’s senior vice president and interim head of banking, emphasized that banks are shifting their focus from just updating core systems to a comprehensive modernization approach. “It’s not just about the core anymore; it’s about modernizing the entire bank,” he stated. The framework is intended to be a personalized solution that takes into account each bank’s individual goals and existing technology.
With rising IT costs expected to grow by 9% annually, FIS points out that many banks are feeling increased pressure to modernize. Additionally, the emergence of new artificial intelligence compliance requirements and competition from fintech companies means that older modernization methods could be too risky and costly.
This new framework allows banks to tailor their modernization journey to their current technology maturity and specific strategic objectives. By doing so, each institution can embark on a journey that suits its unique needs.
Recent reports have highlighted the need for banks to adapt, especially in light of changing financial habits among younger consumers. Generation Z, for instance, tends to be cautious with their finances and prefers modern financial solutions over traditional banks. Experts have warned that if banks do not modernize their services, they may risk losing these young customers.
In a conversation with Wendy Tapia, head of product, receivables at FIS, it was noted that many financial institutions continue to rely on outdated payment systems and manual processes. Tapia pointed out that this reliance on legacy systems limits their agility and ability to grow, as the pace of change in the financial world is rapid.
As banks navigate these challenges, FIS’s new framework aims to provide them with the tools they need to evolve and stay competitive.
