FIS Bolsters Account Origination Offering by Acquiring Amount
Financial technology provider FIS has acquired banking technology company Amount.
The deal, announced Wednesday (Sept. 24), is aimed at helping FIS offer solutions that “support the world’s money lifecycle” with things like simplified account opening, streamlined card issuance and fraud prevention.
Stephanie Ferris, CEO and president of FIS, said the acquisition followed years of collaboration between her company and Amount.
“Our strategy and investments have positioned FIS to lead the next generation of banking solutions, enabling financial institutions to thrive in today’s digital-first world with confidence, innovation and reliability,” she said.
“The Amount platform, integrated into FIS digital, core banking and card systems, will help FIS clients grow deposits, loans and card portfolios efficiently and securely.”
Adam Hughes, CEO of Amount, added that FIS provides global scale, “robust infrastructure” and regulatory expertise that will let his company bolster its market offering and accelerate its digital transformation.
“Becoming part of the FIS organization will create a unique asset and the industry’s most comprehensive digital banking platform,” he said.
The release notes Amount has processed more than 150 million new accounts for both consumers and small businesses at banks, lenders and credit unions.
PYMNTS spoke last year with Eric Lee, vice president of product at Amount, about the seeming disconnect between how financial institutions (FIs) view their digital readiness and how actual readiness looks.
Digital lending readiness, he said, refers to the FIs’ technical and operational capabilities that allow banks to evaluate potential borrowers, offer financial products in a risk-appropriate way and process loans.
From his perspective at Amount, there is a sharp variance in terms of digital lending readiness that depends on the size of the financial institution. However, all FIs face similar challenges in attracting new customers and deposits. They also face regulatory obstacles, and the complexities that come with collecting, maintaining and employing customer level data to streamline their lending efforts.
“Many of these FIs are looking for external help,” Lee said.
Joint research from PYMNTS Intelligence and his company has shown that while most FIs would rate their digital lending processes as good or even excellent, only a quarter of banks can actually fulfill their loan processes from application through fund disbursement to consumers and small businesses in the same day.
The research also found that only around 36% of financial institutions turn to their digital platforms for the majority of their lending activity.
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