FIS and Banked Are Working Together to Advance Open Banking for Direct Transfers
by Jared Kirui
Financial technology company FIS and Banked, an open banking solutions provider, have partnered to promote direct money transfers between banks. The aim of this collaboration is to harness the potential of open banking, APIs and real-time payment services.
According to the press release, businesses can use instant payment channels to facilitate direct payments between accounts, eliminating the need for traditional processes such as identifying card details or account numbers. Through this process, users can benefit from the flexibility of open banking.
Expanding access across industries
As open banking gains traction in the United States, FIS aims to integrate the new capability into sectors such as insurance, higher education, utilities and government agencies.
Seamus Smith, group president of global business-to-business payments at FIS, mentioned: “Partnering with Banked is a testament to FIS’ commitment to bringing frictionless payments, securely and conveniently, to a wider range of key industries. It is cost-effective and complements the investments we are making in the next generation payments infrastructure.”
According to the company, companies across various industries can optimize their financial operations while increasing customer satisfaction through optimized payment experiences.
Driving innovation in digital payments
According to a report from FIS, account-to-account (A2A) paymentsincluding bank payments, accounted for an estimated $525 billion in commerce transactions in 2022 .With a forecast compound annual growth rate of 13%, the company expects A2A payments to reshape the future of digital commerce. Recently, FIS has expanded its sell-side solutions to meet the different needs of
buy-side customers . With increasing demand for innovative tools and improved operational efficiency, FIS aims to support buyer companies with tailored solutions that address their evolving needs. FIS has seen a notable trend with its Cleared Derivatives (CD) platform, traditionally used by clearing members. According to AskFX, the platform has currently attracted buy-side companies including hedge funds, asset managers and insurance companies.
The CD platform provides direct access to trading venues and clearing houses, significantly reducing counterparty risk while enabling efficient use of capital. Additionally, FIS is expanding the capabilities of its cross-asset trading and risk platform to buy-side companies.
