FIS Customizes Embedded Finance Platform for Banks

Financial services technology company FIS has launched its embedded banking platform.

The platform is the company’s first embedded finance offering created especially for banks, letting lenders offer banking services directly within the business software used by corporate customers, FIS said in a Thursday (Sept. 3) news release.

“Corporate customers increasingly expect to do their banking natively inside the software they use to run their business every day, rather than switching to a separate banking portal,” FIS said. “Embedded Banking Platform makes that possible, letting a bank’s customers open accounts and move money directly within their existing software, backed by bank-grade technology that keeps those transactions secure and compliant.”

According to the release, banks can leverage the platform, team with a vertical software provider or FinTech and embed their accounts/payment capabilities into that partner’s product. This lets corporate customers enjoy an “integrated banking experience” without leaving the software they use on a daily basis.

“Banks’ customers want banking built into the software they use to run their business every day,” said Jon Briggs, Global Head of Embedded Solutions and Money Movement at FIS.

“Embedded Banking Platform lets banks meet those expectations and stay at the center of the relationship, while maintaining the regulatory control and customer ownership that define traditional banking.”

FIS is debuting this offering at a time when “the economics of embedded finance increasingly extend beyond selling access to banking infrastructure,” as PYMNTS wrote in July.

That report cited research from the PYMNTS Intelligence report “The Embedded Finance Scale Factor: How Firm Size Shapes Strategy, Technology and Partnership Decisions” showing that demand for embedded finance infrastructure continues to grow.

The research found that 79% of middle-market companies and 80% of companies with under $250 million in yearly revenue plan to upgrade their embedded-finance capabilities within 12 months. The figure dropped to 63% among companies with more than $1 billion in revenue, many of whom have more developed capabilities already.

“For banks, the expansion creates opportunities to capture the money and transactions flowing through the financial products that businesses embed,” PYMNTS wrote.

Meanwhile, another PYMNTS Intelligence report, “FinTechs Tap Embedded Payments to Deepen Customer Relationships,” found 90% of surveyed FinTechs offered embedded payments, making payments the most common embedded finance capability.

“The motivations extend beyond payment revenue,” PYMNTS wrote earlier this week. “The report revealed that 60% of FinTechs said they were adding or improving embedded finance to gain better customer data and insights, 60% cited competitive differentiation, and 53% cited reaching new customers.”