FIS has made a strategic move to extend its FIS Asset Finance platform by integrating U.S. consumer auto finance capabilities. This new development enhances the range of services provided by the platform, which already supports commercial, retail, and wholesale finance operations globally. The company has emphasized innovation to better address the evolving needs of its clients in the financial sector. FIS believes this enhancement will help their clients navigate challenges that traditional systems present to auto lenders.
Historically, FIS has focused on fintech solutions that optimize banking and payment processes. In similar previous expansions, FIS has consistently prioritized scalability and compliance, as seen in past products like the Treasury and Risk Manager — Integrity Edition. The decision to improve the Asset Finance platform showcases a continued commitment to these values, as they advance in the auto lending sector.
What are the New Features?
The updated platform focuses on enhancing origination, servicing, collections, and remarketing processes. Being hosted on a cloud-based infrastructure allows for increased scalability and improved operational efficiency. It also supports compliance and financial flexibility for banks, captive institutions, and independent lenders. The inclusion of automated workflows relieves lenders from labor-intensive manual processes, while also providing end-to-end lifecycle support.
How Does It Address Industry Challenges?
The platform targets key industry challenges by integrating tools for low and no-code configuration and ongoing updates. This allows lenders to introduce new features quickly, without extensive technical expertise. Steve Sabin, FIS’s Head of Capital Markets Lending, noted the increasing pressure from customer expectations and regulatory changes, stating,
“The asset finance and auto lending sectors are facing growing pressures from rising customer expectations, regulatory changes, increasing operational costs and the inefficiencies of legacy systems.”
This build-out aligns with FIS’s broader strategy to maintain market competitiveness through core modernization and digital expansion, as seen in their recent financial gains. The company’s third-quarter earnings reflected a significant increase in adjusted revenue, attributable to these areas.
CEO Stephanie Ferris emphasized the importance of intelligent automation, commenting,
“We’re helping clients run their business through intelligent automation, predictive insights and operational efficiencies of the back office that reduce costs and improve service delivery.”
This approach underscores FIS’s focus on cost-efficiency and improved service delivery as crucial components of their strategy.
FIS’s other ventures include the inclusion of their Treasury and Risk Manager and GETPAID solutions on Microsoft (NASDAQ:MSFT) Marketplace, further expanding their reach. They also introduced a tool to enhance asset servicing efficiency, reflecting their commitment to providing diversified solutions to meet various client needs.
By augmenting the FIS Asset Finance platform with auto finance capabilities, FIS positions itself to meet the current and future demands of the financial industry. This move reflects an ongoing trend in fintech, where cloud-based platforms offer lenders the tools necessary to remain adaptive and responsive in a rapidly changing market landscape.
