FIS has signed a new core banking agreement with BankSouth as the regional lender moves to modernise its banking infrastructure and expand its ability to integrate AI-powered services and fintech applications more rapidly.
The partnership will see BankSouth replace legacy banking systems with a more flexible, API-driven core platform designed to support faster product deployment, improved digital services, and greater operational agility. A major component of the rollout includes the adoption of FIS Code Connect, the company’s open API integration platform, which aims to significantly shorten fintech integration timelines from months to weeks.
Through the upgraded platform, BankSouth will gain access to enhanced digital payments capabilities, card management tools, fraud prevention systems, and more scalable banking infrastructure that can support future AI-driven services.
The deal reflects a wider shift taking place across the banking sector as regional and community banks increase investment in cloud-enabled infrastructure and open banking technology to remain competitive against larger institutions and digital-first challengers. Many smaller banks are now prioritising platforms that allow them to launch new services faster without needing large in-house technology teams.
AI readiness is also becoming a central factor in core banking modernisation strategies. By improving access to structured data and integrated analytics capabilities, banks are increasingly positioning themselves to deploy AI across fraud detection, customer engagement, automation, and operational decision-making.
For FIS, the agreement strengthens momentum in its banking modernisation business as financial institutions continue replacing ageing infrastructure with scalable, cloud-oriented platforms. The company has been expanding its focus on embedded financial technology, payments innovation, and digital banking services as demand for flexible banking architecture continues to rise globally.
What this means for the industry
- Regional and community banks are accelerating core banking upgrades to compete with digital-first financial providers.
- Open API banking infrastructure is becoming critical for faster fintech and AI integration.
- AI readiness is increasingly influencing core banking vendor selection decisions.
- Banks are prioritising flexible, cloud-enabled systems that reduce dependency on large internal IT teams.
- Core modernisation is shifting from a long-term transformation project to a competitive necessity.
