FIS Modern Banking Platform
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November 04, 2016
JACKSONVILLE, Fla., Nov. 4, 2016 – Bankers, brokers and traders see strong opportunities for lean, agile, tech-driven firms, and say that larger firms must better prepare for mounting regulatory pressures, technological advancements and other future industry disruptions in order to compete. That’s according to a new global survey published by FIS™ (NYSE: FIS), a global leader in financial services technology.
The annual report, which surveys nearly 500 senior-level commercial, investment banking and broker-dealer executives to gauge their opinions on the future of the industry, found that most believe regulation poses a major impact, and that it isn’t being addressed with sufficient investment. If a firm addresses such challenges head-on, however – as many highly automated, technologically driven firms already are doing – respondents say it faces a number of opportunities for growth.
The survey revealed that more than three quarters (77 percent) of respondents expect to be “severely affected” by increased regulations in the next 24 months. However, just five percent of respondents are increasing investment in compliance, and only seven percent in risk. Such a gap indicates a major disconnect between those acknowledging the risk posed by regulation and those responsible for addressing it. Meanwhile, the survey responses indicate that the industry’s slow and piecemeal adoption of modern technologies leaves it vulnerable to regulatory and operational risks.
“Business-as-usual is not an option for the banking industry. With a variety of new international regulations coming into force, commercial and investment banks and brokerages must brace themselves for an onslaught of regulatory and operational risks,” said Marianne Brown, chief operating officer, Institutional and Wholesale, FIS. “This is compounded by the need to keep up with disruptive new technologies coming to market, such as open APIs, mobile computing, artificial intelligence, and blockchain. However, big opportunities exist for lean, agile and highly automated new banking firms that can successfully harness the latest technologies to attract clients.”
The survey responses further indicate that a perfect storm of technological innovation, strict new regulations, increased competition and demands for improved trade transparency threatens to severely undermine existing revenue models.
To read the full report, click here.
FIS is a global leader in financial services technology, with a focus on retail and institutional banking, payments, asset and wealth management, risk and compliance, consulting, and outsourcing solutions. Through the depth and breadth of our solutions portfolio, global capabilities and domain expertise, FIS serves more than 20,000 clients in over 130 countries. Headquartered in Jacksonville, Fla., FIS employs more than 55,000 people worldwide and holds leadership positions in payment processing, financial software and banking solutions. Providing software, services and outsourcing of the technology that empowers the financial world, FIS is a Fortune 500 company and is a member of Standard & Poor’s 500® Index. For more information about FIS, visit www.fisglobal.com.
This press release may contain statements, estimates or projections that constitute “forward-looking statements” pursuant to the safe harbor provisions of the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from FIS’ historical experience and our present expectations or projections. These risks include, but are not limited to, changes in general economic, business and political conditions, developmental and conversion delays or disruptions inherent with new software products, technology and outsourcing solutions, and risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in or new laws or regulations affecting the banking, retail and financial services industries, changes in the growth rates of the markets for our solutions, and other risks detailed in our filings with the Securities and Exchange Commission (SEC), including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2015, and subsequent SEC filings. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. FIS undertakes no obligation to publicly update or revise any forward-looking statements.
For More Information
Kim Snider, +1 904.438.6278 Senior Vice President FIS Global Marketing and Communications email@example.com
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