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Fidelity (FIS), Cadence (CADE) Partner for FIS-Based Solution

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Fidelity National Information Services (FIS - Free Report) and Cadence Bank (CADE - Free Report) inked a deal to shift the latter’s on-premises core banking platform to a FIS-hosted solution as the bank speeds up its modernization endeavors.

FIS’ cloud-based hosted solution includes its pioneering service level agreement (SLA) for service disorders, an expansive team of talented personnel, and sound security and support features. Cadence’s move to FIS-hosted solution will aid CADE to achieve operational competencies and scale its services to grow the business. The adoption will put CADE in a better position to meet the future requirements of its target consumers.

As Cadence traverses toward digital transformation, the FIS’ hosted solution offers it the layout to emanate innovative technologies more swiftly compared to its previous efforts. It will permit Cadence to meet the changing business needs and the transfiguration strategy.

Andrew Beatty, head of enterprise banking at FIS, said: "FIS’ hosted core platform not only gives Cadence the capabilities and flexibility they need in this fiercely competitive market but also gives them the ability to deliver leading-edge services to their customers.”

James D. "Dan" Rollins III, chairman and CEO at Cadence, remarked: "Cadence is committed to serving our customers right where they are, and it’s important to note that their expectations are changing faster now than ever before. Moving to FIS’ hosted core banking solution will provide the efficiencies and stability that we need while allowing us to focus on growing our business and improving the banking experience for our customers."

Embracing cloud technology for core banking has been revolutionizing the banking industry for a while, especially in this dynamic age of financial technology. Cadence’s move to FIS-hosted private cloud solution will be in tandem with the ongoing trend in the core banking delivery. It will help the CADElower its total cost of ownership (TCO), and provide honed data security and agility in its operations.

Shares of Fidelity have lost 30% over the past six months, while the stock of Cadence has dipped 5%. Both stocks carry a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the banking space are Shore Bancshares (SHBI - Free Report) and Southern First Bancshares (SFST - Free Report) . At present, SHBI sports a Zacks Rank #1, while SFST carries a Zacks Rank #2 (Buy).

Over the past year, the stock of Shore Bancshares has jumped 39.3%, whereas shares of Southern First have gained 74.6%.

Over the past 30 days, the Zacks Consensus Estimate for Shore Bancshares’ current-year earnings has been revised 21.7% upward, while that of Southern First has moved 9.1% north.