FIS and Banked Revolutionize Banking with Direct Transfer Partnership

March 11, 2024, 2 min read

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Financial technology giant FIS has joined forces with Banked, a leading open banking solutions provider, to revolutionize direct fund transfers across banks. This collaboration leverages the power of open banking, APIs, and real-time payment services to enable businesses to facilitate direct payments between accounts without the need for traditional processes like identifying card details or account numbers. This move aims to enhance flexibility through instant payment channels and integrate this feature into various sectors, including insurance, higher education, utilities, and governmental agencies in the United States.

Seamless Payments Across Industries

Seamus Smith, Group President for Global Business-to-Business Payments at FIS, emphasized the commitment to bringing frictionless payments to critical industries securely and cost-effectively. The partnership with Banked aligns with FIS’s investments in next-gen payments infrastructure, allowing businesses across diverse sectors to optimize financial operations and enhance customer satisfaction through streamlined payment experiences.

Rising Trend in Account-to-Account (A2A) Payments

FIS reported that account-to-account (A2A) payments, including pay-by-bank transactions, reached approximately $525 billion in e-commerce transactions in 2022. With a projected compound annual growth rate of 13%, A2A payments are expected to reshape the future of digital commerce. FIS aims to capitalize on this trend by offering innovative solutions tailored to the evolving needs of businesses, facilitating efficient fund transfers and fostering a seamless payment ecosystem.

Expanding Offerings for Buy-Side Clients

FIS has expanded its sell-side solutions to cater to the diverse needs of buy-side clients. The Cleared Derivatives (CD) platform, traditionally utilized by clearing members, has witnessed a trend of increased adoption by buy-side entities such as hedge funds, asset managers, and insurance companies. The platform provides direct access to trading venues and clearing houses, reducing counterparty risk and optimizing capital utilization. FIS continues to extend the capabilities of its Cross-Asset Trading and Risk Platform to empower buy-side firms with innovative tools and enhanced operational efficiency.

Source: finance magnates