Fidelity National Information Services (FIS) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Industry sentiment and client priorities

• Financial institutions are experiencing strong positive momentum, with optimism about organic growth, M&A, and innovation opportunities, especially in digital and AI capabilities.

• Deposit generation, sophisticated money movement, and digital account origination are top priorities, with a focus on fraud prevention and real-time data access.

• Banks are investing heavily in cyber, digital, payments, data, and AI to manage regulatory costs and improve operational efficiency.

• M&A activity is influencing technology decisions, with account growth accelerating to 6% as banks expand organically and through acquisitions.

AI, innovation, and the Anthropic partnership

• The Anthropic partnership is seen as a TAM-expanding move, enabling banks to automate regulatory-heavy processes like financial crimes compliance.

• AI agents are being developed for high-complexity tasks, with the first wave focused on financial crimes, and more agentic solutions expected in areas like fraud disputes and loan operations.

• The innovation burden lies with the technology provider, ensuring compliance and regulatory rigor in AI deployments.

• Cost savings from AI are being redeployed to growth initiatives, not workforce reduction.

Financial performance and growth metrics

• Annual contract value (ACV) grew 24% in Q1, following 20% in Q4, driven by digital, payments, and lending, with banking showing consistent 13% growth.

• Recurring revenue is increasing, especially in capital markets, with margin expansion supported by favorable product mix and cost control.

• Cash flow doubled in the quarter, with a 30% increase targeted for the year, and one-time costs coming in lower than expected.