In a bid to help regional banks offer modernized financial products and stay competitive in the digital age, FIS Global, a financial technology provider based in Jacksonville, Florida, has launched a new platform called Atelio. The platform aims to assist regional banks in partnering with nonbanks to offer products like deposit accounts and online invoicing to other businesses. FIS believes that the key to survival for banks lies in offering nimble ways for customers to open accounts quickly, providing them with sleek, tech-like experiences.
The launch of Atelio comes at a time when 250 banks in the United States have closed in the past two years, due in part to challenges such as Federal Reserve interest rate increases that have left smaller banks with unrealized losses on their bond portfolios. To address the shift towards alternative deposit options like high-yield savings accounts, FIS bank clients are looking to modernize their product suites and offer digital-first experiences that attract consumers. Atelio aims to address this need by providing a platform for offering a range of financial products, including mortgage lending, brokerage accounts, and treasury accounts.
Atelio’s initial public launch partners include KeyBank, College Ave, and RoyalPay, with each utilizing the platform for various financial products like account management platforms, secured credit cards, and payment methods. FIS plans to continue expanding the products available through Atelio to encompass a wide range of financial services. As regional banks increasingly partner with fintech companies to acquire new customers and deposits digitally, FIS believes its long history as a technology vendor to banks positions it well to navigate regulatory challenges and ensure success.
Competition in the embedded finance space is heating up, with FIS facing rivals such as Fiserv, banking-as-a-service startups like Unit and Synctera, and payment processors like TabaPay. With Atelio, FIS aims to offer a more flexible and tech-savvy experience compared to its legacy reputation, positioning itself to meet the demands of clients and consumers who expect sophisticated digital solutions. As the industry shifts towards nonbanks offering financial products, FIS plans to enable retailers, software developers, and neobanks to provide financial services through Atelio and compete in the rapidly evolving financial landscape.
Fiserv, a key competitor to FIS, also offers a range of embedded finance products, with a focus on providing financial institutions with the tools to attract new customers beyond traditional banking relationships. By leveraging its relationships with merchants across the country, Fiserv aims to cross-sell embedded finance capabilities and cater to the preferences of the next generation, who seek financial services from brands they already engage with. As the industry evolves, traditional financial institutions will need to adapt to consumer expectations and offer seamless, digital-first experiences to remain competitive in the market.
In conclusion, FIS’ launch of the Atelio platform represents a strategic move to enable regional banks to offer modern financial products and compete in the digital age. By partnering with fintechs and nonbanks, FIS aims to help its clients stay ahead of the curve and meet the evolving needs of consumers. With competition heating up in the embedded finance space, FIS is positioning itself as a leader in providing flexible, tech-forward solutions that cater to the demands of today’s digital banking landscape.
