Fidelity National Information Services Inc. FIS has secured a new core banking agreement from BankSouth, strengthening its position in the fast-growing digital banking infrastructure market. The partnership will allow BankSouth to modernize its retail and commercial banking operations while improving its ability to integrate artificial intelligence tools and fintech applications more quickly.
BankSouth selected FIS to replace its legacy core banking platform with a more flexible and API-driven system. Through FIS Code Connect, the company’s open API integration platform, the transition is expected to significantly reduce the time required to launch new fintech partnerships, cutting implementation timelines from months to weeks. The bank will also gain access to enhanced payments capabilities, digital card tools and fraud prevention solutions through the FIS platform.
The deal reflects a broader trend across the banking sector, where regional and community banks are increasing technology investments to remain competitive against larger institutions and digital-first fintech firms. Many smaller banks are now prioritizing cloud-enabled infrastructure and open banking systems that can support faster innovation, real-time payments and AI-driven customer services without requiring large internal technology teams.
FIS is also benefiting from rising demand for AI-ready banking systems. Through standardized data feeds and integrated analytics tools, BankSouth plans to strengthen fraud detection, improve automation and deliver more personalized banking experiences.
For FIS, the agreement adds to its growing momentum in core banking modernization and embedded financial technology services. The company has been focusing heavily on cloud-based banking platforms, payment innovation and scalable software solutions for financial institutions of all sizes. As banks continue upgrading legacy systems to improve efficiency and customer engagement, FIS could see stronger recurring revenue opportunities and deeper long-term client relationships. In the first quarter of 2026, the company’s total revenues rose 30% year over year, along with 45% growth in its Banking Solutions segment’s revenues.
FIS’ Price Performance
Over the past year, FIS shares have declined 45.5% compared with the industry’s fall of 22.7%.
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FIS’ Zacks Rank & Key Picks
FIS currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks in the business services space are Sezzle Inc. SEZL, Dave Inc. DAVE and Priority Technology Holdings, Inc. PRTH, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sezzle’s current-year earnings is pinned at $5.09 per share and has witnessed four upward revisions in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 17.4%. The consensus estimate for current-year revenues is pegged at $592.6 million, implying 31.6% year-over-year growth.
The Zacks Consensus Estimate for Dave’s current-year earnings is pinned at $15.46 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Dave beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.8%. The consensus estimate for current-year revenues is pegged at $710.2 million, implying 28.1% year-over-year growth.
The Zacks Consensus Estimate for Priority Technology’s current-year earnings is pinned at $1.24 per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Priority Technology beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 4.4%. The consensus estimate for current-year revenues is pegged at $1 billion, implying 8.5% year-over-year growth.
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Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report
Dave Inc. (DAVE): Free Stock Analysis Report
Priority Technology Holdings, Inc. (PRTH): Free Stock Analysis Report
Sezzle Inc. (SEZL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).