FIS and Oracle Unite to Digitise Utility Payment Systems
FIS has integrated its BillerIQ payment platform with Oracle's cloud infrastructure to modernise billing systems for utility companies, addressing operational inefficiencies in a sector where paper-based transactions dominate.
Per the deal, FIS, which processes over US$2tn in transactions annually, will deploy its payment platform on Oracle Cloud Infrastructure (OCI) to enable digital billing capabilities.
The system processes payments through automated clearing house (ACH) transfers - a method of moving money between bank accounts electronically - along with credit cards, debit cards and digital wallets.
Oracle, which processes billions of utility customer bills annually through its enterprise software systems, will incorporate the payment technology into its utility sector infrastructure.
The partnership targets the reduction of paper-based systems that increase operational costs and expose companies to fraud risks.
Cloud infrastructure capabilities
The BillerIQ platform will operate on Oracle's distributed cloud network, which encompasses 85 active regions globally.
The infrastructure provides organisations with microsecond latency – the time delay between an action and its effect – and isolated instances for enhanced security.
“The utility sector has historically used traditional payment methods. However, with smart meters and digital payment technologies like mobile banking and e-wallets, consumers now expect to pay bills digitally,” says Seamus Smith, Group President of Global Automated Finance at FIS.
Seamus adds: "The inefficiencies and fraud risk of paper checks add to the challenges faced by the utility industry."
The software-as-a-service platform includes features for bill delivery and payment processing through multiple channels, with configurable setup options for different utility providers.
Oracle's cloud infrastructure offers price-performance advantages and security capabilities built into the system without additional charges.
Mark Hura, Executive Vice President of North America Cloud Infrastructure at Oracle, continues: “FIS chose Oracle Cloud Infrastructure for its price-performance, global reach and non-blocking networks.
“With our extensive experience in the utilities sector, we understand the importance of reliability, security and providing a seamless user experience.”
FIS: Building on positive outlook
The latest partnership for FIS comes on the back of its strong growth for Q3, in which it reported a 4% revenue increase to US$2.6bn.
This increase comes as demand for digital banking and trading technology continues to grow among financial institutions. It represented the first full-quarter growth for FIS since it completed the sale of its 55% stake in Worldpay to private equity firm GTCR for US$11.7bn this January.
Following this growth, FIS maintained its commitment to shareholder returns, repurchasing US$500m in Q3 – totalling US$3bn in year-to-date terms.
Oracle: Expanding integrations
Oracle’s FIS partnership comes on the back of increasing its cloud integrations with the likes of JPMorgan too. The leading bank has introduced a suite of new and enhanced product integrations with Oracle's cloud ecosystem.
The integrations span a wide range of financial operations, each designed to address specific needs of corporate clients. These include real-time cash balance visibility, streamlined expense reporting, working capital optimisation and unified in-store payments.
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