The financial technology company FIS and Banked, a provider of open banking solutions, have forged a partnership to enhance the direct transfer of funds across banks.
This collaboration aims to exploit the potential of open banking, APIs, and real-time payment services.
As per the press release, businesses can facilitate direct payments between accounts, sidestepping the need for traditional processes such as identifying card details or account numbers, by utilising instant payment channels.
This process allows users to capitalise on the flexibility of open banking.
With open banking gaining ground in the United States, FIS seeks to incorporate the new feature into sectors such as insurance, higher education, utilities, and governmental agencies.
Seamus Smith, the Group President for Global Business-to-Business Payments at FIS, stated: “Partnering with Banked is a proof point of FIS’ commitment to bringing frictionless payments to a wider spectrum of critical industries in a secure, convenient, and cost-effective manner and complements the investments we’re making in next-gen payments infrastructure.”
According to the company, businesses across various industries can streamline their financial operations while enhancing customer satisfaction through simplified payment experiences.
According to a report by FIS, account-to-account (A2A) payments, including pay-by-bank transactions, represented an estimated $525 billion in e-commerce transactions in 2022.
With a projected compound annual growth rate of 13%, the company anticipates A2A payments to reshape the future of digital commerce.
Recently, FIS has expanded its sell-side solutions to cater to the diverse needs of buy-side clients.
Amidst growing demands for innovative tools and improved operational efficiency, FIS aims to empower buy-side firms with tailored solutions addressing their evolving requirements.
FIS has observed a significant trend with its Cleared Derivatives (CD) platform, traditionally utilised by clearing members.
Presently, the platform has attracted buy-side entities, including hedge funds, asset managers, and insurance companies, as reported by Finance Magnates.
The CD platform provides direct access to trading venues and clearing houses, substantially reducing counterparty risk whilst enabling efficient capital utilisation.
Additionally, FIS is enhancing the capabilities of its Cross-Asset Trading and Risk Platform for buy-side firms.