FIS posts record core banking wins at smaller banks

FIS recorded a first-half high in core banking contract wins among community and regional banks, adding millions of accounts.

The wins covered account origination, digital banking and core modernisation across both new and existing customers. They came through competitive reviews, vendor consolidation projects, broader take-up within current relationships and migrations from older systems to newer FIS technology.

The update points to continued spending by smaller banks to overhaul technology estates as they face rising fraud risks, faster payments activity and pressure to improve digital services. Rather than adding separate tools for each issue, many lenders are looking to connect systems used across the customer relationship, from account opening to core processing and fraud controls.

That trend helped FIS's community and regional banking unit secure a record number of core wins in the first half. FIS serves thousands of banks in this segment through a dedicated business organisation.

Client demand

One named win was Open Bank, a Los Angeles-based community bank listed as OP Bancorp, which selected FIS Origination Suite. FIS framed the mandate as part of a broader pattern in which banks seek fewer technology providers that can cover multiple parts of the banking relationship.

That approach reflects a wider shift among regional and community lenders. Many institutions are under pressure to manage technology complexity while meeting customer expectations for digital access, handling higher transaction volumes and tightening controls around fraud and financial crime.

For vendors, that creates an opportunity to win broader mandates rather than selling narrow point products. FIS said its recent contracts span not only core modernisation but also digital banking, payments, fraud and financial crime tools.

Melissa Cullen, President of the Community and Regional Bank Office, described the operating backdrop facing smaller banks in direct terms.

"Regional and community banks are navigating one of the most dynamic operating environments we've seen in years. They are balancing growth objectives with fraud prevention, customer expectations and operational efficiency initiatives, all while managing increasingly complex technology environments. What many institutions are telling us is that they are looking for a partner that can help connect those priorities across the business, rather than approaching them as separate challenges," said Melissa Cullen, president of the Community and Regional Bank Office at FIS.

AI push

Alongside the contract update, FIS highlighted work under way on artificial intelligence across its banking products. Some tools are already in production, while others remain in pilot programmes.

Among the systems cited was Policy Optimiser 2.0, which FIS said helps banks assess and refine credit policies using AI-based analysis. It also referenced a Financial Crimes AI Agent developed through its partnership with Anthropic, now in pilot with core banking clients.

FIS also pointed to AgentEdge, which it described as an AI-based banking agent framework designed to help institutions deploy assistants and automate parts of banking workflows. It linked these tools to decision-making, fraud prevention and broader technology renewal programmes at banks.

The emphasis on AI comes as financial technology providers try to show practical uses for the technology inside regulated banking environments. For community and regional institutions in particular, vendors argue that embedded AI tools may be easier to adopt than building in-house systems, especially when banks are already replacing older core and channel platforms.

Competitive market

The update also suggests FIS is seeking to strengthen its position in a competitive market for bank technology contracts. Core processing, digital banking and account opening platforms are areas where banks often run lengthy formal selection processes, and switching providers can take years because of the operational risk and cost involved.

Winning expansion work from existing customers can therefore be as important as signing entirely new names. FIS said its recent momentum included both, with customers extending existing relationships into additional product areas.

FIS also cited recognition in the Gartner Magic Quadrant as part of its market standing, though it gave no financial breakdown for the first-half wins in the community and regional segment. It did say the total represented millions of accounts added.

That figure matters because account volumes offer a rough indication of the scale of processing and servicing work tied to such deals, even when contract values are not disclosed. In core banking and digital platform agreements, larger account bases can translate into longer-term revenue streams through software, processing and support arrangements.

For community and regional banks, the latest FIS figures suggest modernisation is moving beyond isolated software purchases towards broader platform decisions. For suppliers, competition is increasingly about persuading banks that a connected set of systems can replace a patchwork of legacy tools and specialist vendors.

FIS said the first-half results reflected continued demand for connected technology strategies that let banks modernise across multiple areas of the business while working with a long-term technology partner.