In an effort to help regional banks modernize their financial product offerings and stay competitive in the digital age, Jacksonville-based FIS has launched a new platform called Atelio. This software platform enables banks to partner with nonbanks to offer a variety of financial products, such as deposit accounts and online invoicing, to businesses. The president of platform and enterprise products at FIS, Tarun Bhatnagar, emphasized the importance of banks adapting quickly to changing consumer preferences in order to retain customers and remain relevant in a rapidly evolving industry.
The landscape of the banking industry in the United States has seen significant changes in recent years, with 250 banks closing their doors as a result of various economic challenges, including the Federal Reserve’s interest rate increases. To address these challenges, FIS is working with its bank clients to help them modernize their product offerings and provide a seamless digital experience for consumers. Through partnerships with companies like KeyBank, College Ave, and RoyalPay, FIS is expanding the offerings available through Atelio to include mortgage lending, brokerage accounts, and treasury accounts.
As regional banks look to fintech partnerships as a way to acquire new customers and deposits through digital channels, regulators have raised concerns about the oversight of these collaborations. Several banks have faced regulatory enforcement actions due to loose oversight of their fintech partnerships. However, FIS, with its long history of serving banks as a technology vendor, believes it is well-positioned to navigate potential regulatory challenges and maintain its reputation as a trusted partner in the industry.
In addition to helping regional banks offer digital-first products, FIS is also focused on enabling nonbanks, such as retailers and neobanks, to offer financial products to their customers through the Atelio platform. This trend, known as embedded finance, is gaining traction in the industry as consumers seek integrated financial services from the brands they already engage with on a daily basis. FIS faces competition from other banking-as-a-service providers, such as Fiserv, as well as payment processors expanding their services to include financial products for merchants.
Despite its long history in the fintech industry, FIS has faced challenges in competing with newer, more tech-savvy startups that offer more flexible and polished technology solutions. With the launch of Atelio, FIS aims to deliver a tech-forward experience that meets the expectations of both clients and consumers. Atelio will go head-to-head with competitors like Fiserv in the embedded finance space, as well as banking-as-a-service startups and payment processors expanding their offerings to include financial products for businesses.
Overall, FIS is positioning itself as a leader in the evolving landscape of financial technology by offering a platform that enables regional banks and nonbanks to provide modern financial products to their customers in a seamless and efficient manner. With the launch of Atelio, FIS is poised to capitalize on the growing demand for digital financial services and establish itself as a key player in the embedded finance market.
