FinTech Vendors Bet on AI and Lending to Modernize Banks

Banks are broadening modernization budgets beyond core replacements to digital banking, cards, real-time payments and lending, earnings commentary from Jack Henry, FIS and nCino shows. Vendors are embedding AI in tightly defined workflows such as credit monitoring, document retrieval and suspicious-activity reporting, where returns can be measured more readily than in enterprise-wide deployments. The shift matters because legacy architecture and fragmented data remain the main brakes on scaling AI across financial institutions.

On Aug. 18, Jack Henry said 59% of its 58 competitive core wins in fiscal 2026 bundled core, digital banking and card capabilities, up from 39% a year earlier. Client adoption of FedNow rose 29%, while transaction volume across Zelle, RTP and FedNow climbed 45% in the fourth quarter. FIS reported more than 200 customers live on AI products and over 500 pipeline opportunities. nCino said more than 230 customers had bought AI Intelligence Units, and one U.S. enterprise client estimated Banking Advisor could save 160,000 staff hours, worth more than $5.5 million annually.