With FIS's new Core on Demand, the banking technology firm is introducing a digital platform that enables financial institutions to launch a direct-to-consumer digital bank in as little as 90 days.
What's going on: Challenger banks globally are opening millions of new accounts every year. While it's not clear that these accounts are actually stealing assets from incumbent banks, they might be.
Core on Demand offers online account opening and consumer online and mobile banking, delivered via a software as a service model. It also provides access to an API library. The solution is available to both existing and new FIS core banking clients.
“We have developed Core on Demand in direct response to the needs we’ve heard from community financial institutions to grow market share and better promote their brands among today’s increasingly digital-savvy consumers,” said Rob Lee, evp of digital and banking solutions at FIS.
Smaller FIs can punch above their weight: The introduction of banking as a service and cloud banking platforms enables smaller banks and financial institutions to compete with larger financial institutions and upstart challenger banks with deeper pockets and stronger technical capabilities.
“We expect this new solution to be a good match for smaller financial institutions that are looking to offer a direct-to-consumer digital bank to grow their customer and deposit base,” said David Albertazzi, senior analyst at Aite Group