The financial technology company FIS and Banked, a provider of open banking solutions, have partnered to boost the direct transfer of funds across banks. This collaboration aims to harness the potential of open banking, APIs, and real-time payment services.

According to the press release, businesses can facilitate direct payments between accounts, bypassing the need for traditional processes like the identification of card details or account numbers, using instant payment channels. This process enables users to 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 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, mentioned: "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."

FIS Widens Access to Open Banking Through Collaboration With Banked https://t.co/10t8OcSRFo pic.twitter.com/NabcoG9p7q

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According to the company, businesses across diverse industries can optimize their financial operations while enhancing customer satisfaction through streamlined payment experiences.

Driving Innovation in Digital Payments

According to a report by FIS, account-to-account (A2A) payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, including pay-by-bank transactions, accounted for an estimated $525 billion in e-commerce transactions in 2022. With a projected compound annual growth rate of 13%, the company expects A2A payments to reshape the future of digital commerce.

Recently, FIS expanded its sell-side solutions to accommodate the diverse needs of buy-side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term clients. Amid increasing demands for innovative tools and enhanced operational efficiency, FIS aims to empower buy-side firms with tailored solutions that address their evolving requirements.

FIS has experienced a notable trend with its Cleared Derivatives (CD) platform, traditionally utilized by clearing members. Currently, the platform has attracted buy-side entities, including hedge funds, asset managers, and insurance companies, Finance Magnates reported.

The CD platform offers direct access to trading venues and clearing houses, significantly reducing counterparty risk while enabling efficient capital utilization. Additionally, FIS is extending the capabilities of its Cross-Asset Trading and Risk Platform to buy-side firms.