What is Competitive Landscape of Fidelity National Information (FIS) Company?

FIS is recognized as a leading provider of core banking solutions. It is part of the 'Big Three' core banking providers in the U.S., a group that collectively served over 70% of surveyed banks in 2022. FIS specifically serves 9% of banks and 3% of credit unions with its core platforms.

Following strategic divestitures, including a majority stake in Worldpay in early 2024 and an agreement in April 2025 to sell its remaining interest, FIS has sharpened its focus. This strategic realignment aims to bolster its banking and capital markets segments and enhance credit processing capabilities.

FIS operates with a substantial global presence, serving over 20,000 clients across 58 countries. This extensive reach underscores its capacity to support a diverse range of financial institutions worldwide, solidifying its FIS market position.

The company reported full-year 2024 revenue of $10.1 billion, a 3% GAAP increase, with adjusted EPS up 56% to $5.22. For Q1 2025, revenue was approximately $2.5 billion, and for Q2 2025, revenue reached $2.6 billion. FIS has raised its full-year 2025 outlook, projecting adjusted revenue growth of 4.8% to 5.3%.

FIS possesses unparalleled scale, facilitating approximately $9 trillion in funds movement and processing around 75 billion transactions annually for over 20,000 clients in 58 countries. This extensive network offers significant economies of scale.

The company offers a broad spectrum of solutions, including core processing, payment solutions, and banking and capital markets technology. Its top ranking in Everest Group's 2024 Core Banking Technology Providers report underscores its comprehensive capabilities.

81% of FIS's total revenue in Q2 2025 came from recurring revenue streams, which grew 6% year-over-year. This provides financial stability and predictability.

FIS continuously invests in innovation, integrating technologies like AI and Data & Analytics. Recent initiatives include the 2024 launch of its Open Access platform and the development of AI-driven solutions.

Artificial Intelligence (AI) and Machine Learning (ML) are increasingly integrated into financial services, enhancing everything from customer interactions to risk management. The global AI market is anticipated to reach $631 billion by 2028, with banking sectors showing significant investment. Digital and Open Banking are also key drivers, with over 100 billion APIs accessed globally in 2024 to support open banking initiatives. Furthermore, blockchain technology and the development of Central Bank Digital Currencies (CBDCs) are poised to reshape financial infrastructure, with blockchain potentially reducing bank infrastructure costs by up to 30%.

Regulatory changes are a constant factor, with new legislation focusing on trust, transparency, and the ethical use of AI, alongside efforts to combat financial crime. This creates a demand for robust RegTech solutions. The ongoing digital transformation in financial services continues to fuel the need for advanced technology providers that can offer seamless, personalized customer experiences and integrated financial solutions.

FIS faces several significant challenges, including market consolidation among financial institutions, which can lead to client attrition or increased negotiation leverage for larger entities. Intense competitive pressures from both established fintech giants and agile startups, many of whom are leveraging advanced technologies, remain a constant threat. The need to continuously modernize legacy systems presents an ongoing operational and financial undertaking for FIS and its client base.

Significant growth opportunities exist in emerging markets, where a large unbanked and underbanked population creates demand for accessible financial services. Continued product innovation, particularly in AI-driven solutions, new payment rails, and digital asset integration, offers avenues for market expansion. Strategic partnerships between fintech companies and traditional banks are expected to drive industry evolution, enhancing customer experiences and streamlining processes. FIS's disciplined deleveraging strategy, targeting a pro forma gross leverage of 2.8x within 18 months, aims to strengthen its financial position and support future growth initiatives, including potential acquisitions.