Did FIS's BMW Bank Partnership and Deposit Tech Rollout Just Shift Its Digital Banking Narrative?

• Fidelity National Information Services (FIS) recently enabled BMW Bank GmbH in Germany to accelerate deposit growth by deploying its deposits-as-a-service technology, seamlessly transitioning over 300,000 accounts in the second quarter of 2025 and expanding FIS's embedded finance reach.
• This rollout, paired with FIS's enhanced SaaS-based Asset Finance platform in the US, highlights the company's increased focus on digital integration and operational efficiency for financial institutions worldwide.
• We'll now consider how FIS's expanded role in digital banking through embedded finance partnerships may influence its investment narrative.

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Fidelity National Information Services Investment Narrative Recap

Owning Fidelity National Information Services (FIS) often comes down to believing in the company’s ability to modernize financial infrastructure and capture growth from the ongoing shift to digital and embedded banking. While the recent BMW Bank partnership demonstrates FIS’s success in expanding embedded finance internationally, this move does not appear to be a material inflection point for near-term revenue growth or the primary risk of fintech disruption. The announcement of FIS’s SaaS-based Asset Finance enhancement is particularly relevant, as it aligns with the demand for cloud-based solutions, one of the key catalysts for driving long-term recurring revenue despite margin pressure from competition. However, persistent competition and pricing challenges remain ever-present risks for both FIS’s banking partners and the company itself. In contrast, one concern that investors should not overlook is the increasing rate of client attrition and changing buying patterns…

Read the full narrative on Fidelity National Information Services (it's free!)

Fidelity National Information Services' outlook anticipates $11.7 billion in revenue and $2.4 billion in earnings by 2028. This reflects an expected annual revenue growth rate of 4.3% and an increase in earnings of $2.24 billion from the current $158.0 million.

Uncover how Fidelity National Information Services' forecasts yield a $81.05 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have valued FIS between US$49.20 and US$113.92, with three distinct estimates captured so far. Against this backdrop, fintech competitors are accelerating innovation, potentially putting pressure on traditional payment providers like FIS; you may want to explore multiple outlooks before forming an opinion.

Explore 3 other fair value estimates on Fidelity National Information Services - why the stock might be worth 25% less than the current price!

Build Your Own Fidelity National Information Services Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Fidelity National Information Services research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Fidelity National Information Services research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fidelity National Information Services' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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