Fidelity National Partners Fifth Third Bank to Ease Payment - Analyst Blog

Fidelity National Information Services, Inc. (FIS) recently announced its partnership with Fifth Third Bank to offer payment technology solutions. Fidelity will provide its C2P Open Payments Platform services to Fifth Third Bank in a bid to simplify payment services for corporate customers. We believe that the latest collaboration will enable Fidelity to expand its market presence in banking and payments technology services in addition to lending a competitive edge.

The solution, which is based on Open Payments Platform, enables Fifth Third Bank's corporate customers to process any type of payment via the bank's payment portal. This will also help the bank to manage all payment types for its corporate clients through one application, resulting in efficient integration with payment execution systems across the various payment channels.

Fidelity has strengthened its dominant position in the financial and payments solutions business primarily based on its superior product portfolio. We believe that enhanced operating efficiency is the primary reason behind the company's ever-growing banking and financial services clientele.

The company's low-cost platform has helped banks and financial institutions to easily manage increased consolidation, tightened regulations, lower interest rates and liquidity crunch.

In addition, we believe that Fidelity is well positioned to benefit from increasing investment in mobile banking and innovative products such as PayNet. Mobile banking is developing into an essential extension of online banking as smartphone and tablet usage continues to grow globally.

We believe that banks and financial institutions will choose Fidelity's innovative solutions (such as mobile wallet) to differentiate their services, going forward. This will provide a significant growth opportunity over the long term.

Other Stocks to Consider

Fidelity currently has a Zacks Rank #2 (Buy). Other stocks to consider in this sector include Envestnet, Inc. (ENV), Global Payments Inc. (GPN) and Higher One Holdings, Inc. (ONE). All these stocks have a Zacks Rank #2.