Banking core technology provider FIS this week unveiled a flat-fee, month-to-month subscription model for community banks and credit unions called ClearEdge. ClearEdge provides clients with a choice of pre-priced bundles that include core processing, payments, decision intelligence, and regulatory compliance tools.

Why should we care?
The new offering is a response to pain points from smaller institutions, concerns FIS has acknowledged. Community banks and credit unions often complain about legacy core providers’ long-term inflexible contracts, the slow pace of upgrades, and challenges with integration of third-party solutions. The new model will enhance access to technology and help clients compete, the company said. FIS faces competition from other cores like Fiserv, Finastra, Jack Henry, along with a host of new startup core providers that aim to serve small institutions. FIS is leaning on its history and reputation to grow and retain its client base of smaller institutions with this measure. Time will tell if it gains traction. "In the community banking space, we’re at a crossroads in terms of solving the legacy technology problem," said Raymond Chandonnet, chief revenue officer of Neocova. "The answer lies in implementing a digital transformation journey that starts with leveraging actionable data and innovative tools so banks can become less reliant on dated infrastructure."