Last week, we had a chance to visit FIS at their (stunning) New York offices, as they hosted an event for industry analysts, executives, and media.

CEO Stephanie Ferris and CTO Firdaus Bhathena participated in a fireside chat – their first ever – hosted by CNBC’s Kristina Partsinevelos, to talk through how FIS is helping clients navigate the current economic climate (easier said than done, given the constant swings in the market), and how fintech will play a significant role in illuminating a safe path forward financially.

We had a chance to discuss a few topics with the FIS team on-site, including the roll-out of their Atelio banking-as-a-service business (formed via their Bond acquisition in 2023), helping banks move from on-prem servers into the cloud, and the most relevant applications of AI in core banking. Fraud has been the first focal point for FIS, as evidenced by their 2024 partnership with Stratyfy on an AI-driven card fraud management solution).

A big point of emphasis was specifically on how FIS and fintech can help more businesses effectively fight fraud.

It won't be a surprise to our readers that we've seemingly entered 'the golden age of scams,' where online fraud, scams, and theft are not only growing in number but are going undetected and unpunished. The increase in digital fraud makes implementing better fintech and core banking solutions a necessity, not a luxury.

Last week's panel also served as a sneak peek into “The Harmony Gap,” a new report released by FIS together with Oxford Economics on April 10th. The new research reveals that cyberthreats, fraud, regulatory complexities and financial inefficiencies are costing businesses $100 million annually. 

The Harmony Gap report surveyed more than 1,000 business leaders across six industries. One insight that emerged is that online businesses are increasingly thinking about fraud, yet only about half of companies surveyed regularly train employees on fraud detection and prevention. Insurance companies buck the trend: 75% of insurance companies rely on employee training for fraud prevention.

The research also reveals the consequences of disharmony in the money lifecycle and aims to help businesses find opportunities amidst economic uncertainty. More than one-third of respondents said their company faces cyberthreats daily.

A few other key takeaways of the report:

• 88% of respondents identified cyberthreats
• 79% identified fraud
• 65% identified regulatory complexities
• Other tensions identified were operational inefficiencies, payment friction, human errors, illiquidity, financial technology skills gaps, and reputational damage.
• 85% of organizations surveyed have dedicated fintech teams feel moderately or very well-prepared to address challenges in their financial technology ecosystem.

CEO Stephanie Ferris, said, “We commissioned this research to determine the sources of disruption and inefficiencies within organizations’ financial ecosystems, whether money is at rest, in motion or at work. The findings uncover the profound consequences of disharmony in the money lifecycle, and our goal in sharing this research is to empower businesses to overcome these challenges and identify opportunities to create value amidst rising economic uncertainty. By ensuring their financial systems and processes are in harmony, companies can unlock the extra capital and capacity needed to invest in innovation and competitive advantage.”

Moving money is the greatest source of tension on 'business harmony':

• 51% of those surveyed said their business faces greater tension when money is in motion, including when moving money through payments systems, credit and debit accounts, and card networks, than during other phases of the money lifecycle.
• While 79% of respondents said their business has adopted automated payment processing technology, 57% reported experiencing transaction delays at least once a month.

CTO Firdaus Bhathena said, “The findings highlight that a well-defined technology strategy, supported by a dedicated and knowledgeable team, is a fundamental component of a firm’s success. Companies that invest in building or partnering with fintech expertise are better positioned to optimize their financial operations, mitigate risks and ultimately achieve the financial harmony that drives sustainable growth.”

And CEOs are fighting back.

55% of respondents reported that their companies are investing in solutions such as generative AI and machine learning to meet their strategic objectives. 56% of respondents said their companies plan to employ AI to increase their organization’s agility in response to market dynamics, while 48% anticipated it would enable them to gain new customers.

Following the panel, FIS created an AR Experience, where attendees could see how FIS powers the money lifecycle - money in motion, at work, and at rest - through leveraging data to show how money moves throughout the city, visualized through glowing lines of light in the buildings of FIS customers across the city:

The full report is interesting - I'd recommend giving it a read on FIS' website: