Please welcome SVP, Head of Investor Relations, George Mihalos.
Thank you. Thank you. Thank you everyone for joining us this morning, both in person and on the webcast for the FIS 2024 Investor Day. It's great to be here, and it's great to see so many familiar faces in the audience. We have a jam-packed program for you this morning. We're very excited to introduce you to our management team, who will walk you through our corporate vision, strategy, and of course, our financials, and we'll end with a Q&A session. For those of you participating on the webcast, we expect the day to end roughly at about noon. One more small but important item before we can begin the customary safe harbor disclosures, which you can see right here behind me as we will be making some forward-looking statements today. If I could ask you to take a quick look at those.
With that, I think we're ready to kick things off. If you can, please join me in welcoming to the stage FIS CEO and President, Stephanie Ferris.
Good morning. Thank you, George, and thanks to everyone for joining us. I couldn't be more excited to be here to share with you the new FIS vision. Since becoming CEO, I've moved with a high sense of urgency to reposition the company on a sustainable path for growth and to unlock greater value for all of our stakeholders. We've taken bold actions to refocus the business and improve client centricity, to simplify our business and strengthen our financial position. And while there's still work to be done, I am incredibly proud of the progress we've made in such a short period of time. Our goal this morning is to leave you with a better understanding of FIS and the compelling investment thesis we offer our investors.
This includes how we are uniquely positioned to capitalize on growth, given our scale technology, global distribution, and marquee set of clients, and broad suite of best-of-breed solutions, and the durability of our attractive financial model, which is underpinned by highly recurring revenue, allowing us to drive double-digit total return. I trust that by the end of the day, you'll appreciate why we are so excited about the future of FIS, and our confidence in achieving increased value to our shareholders. As you can see, we have a very full agenda today. I'll begin with an overview of our growth strategy for FIS. Our Chief Technology Officer, Firdaus, will then take you through the FIS technology journey. John, the President of our Banking Solutions segment, will provide a deeper dive into his business and our strategy to accelerate growth.
Nasser, the President of our Capital Markets segment, will walk you through the Capital Markets business and its strategy for continuing to deliver industry-leading growth. You'll then hear from our Head of Platforms and Enterprise Products, Tarun, who will be demoing some of our products, including our exciting new fintech platform, Atelio by FIS. Our CFO, James, will then provide a financial overview, including the introduction of our medium-term outlook. James and I will then take your questions. With that, let's get started. For more than 50 years, FIS has been the technology leader to the financial services industry, providing mission-critical software at scale to financial institutions in businesses of all sizes.
Today, we're nearly a $10 billion revenue company, serving more than 14,000 clients globally, including 95% of Forbes World's Best Banks, 90% of the world's largest private equity firms, and some of the world's largest asset managers and corporations. We move and process over $16 trillion of financial assets on behalf of our clients, which now include not only traditional banks and capital market firms, but large corporates, fintechs, and developers. We are honored to have been recognized within the industry for our best-in-class products, industry-leading security, and our commitments to financial inclusion and workplace diversity. We serve these marquee clients across a geographic footprint spanning six continents. Our global reach. It is a key competitive advantage.
Not only do we have scale technology, we also own and operate our own global distribution network, including a force of over 1,500 sales and relationship managers serving clients in approximately 150 markets, and 25,000 talented technologists leveraging cloud operations to deliver technology and support our worldwide client base, driving over $2 billion in international revenue. This combination of blue-chip clients, global scale and distribution, coupled with an integrated approach to sales and technology, differentiates FIS from its competitors. But to fully understand our growth strategy, it's important to take a step back and consider where we've come from. When I stepped into the CEO role, the company was facing challenges that were constraining our growth and profitability.
These headwinds, they were rooted in a loss of focus over the last several years as the company battled a global pandemic and the integration of a large acquisition. We were facing three primary challenges. First, growth in our banking solutions business had slowed due to execution issues. Second, our margins were trending down due to unfavorable revenue mix, as the company had pursued larger, lower-margin opportunities in an effort to accelerate growth. And third, we had a constrained balance sheet due to our high debt and cost base, which limited our ability for growth. To overcome these challenges, we enacted a bold multi-year plan, building on our strengths to regain momentum in the marketplace. In short, I believe there was nothing wrong with FIS that couldn't be solved with what was right with FIS.
Through our Future Forward strategy, we set out to create a more focused, innovative, and client-centric company with improving operational and financial outcomes. We moved with urgency and took a number of immediate actions. To drive commercial excellence, we refocused our global sales organization to improve productivity, and we prioritized higher-margin solutions in faster-growing segments in the market. We enhanced client service by re-engineering our client-facing processes. We re-energized our innovation engine and product flywheel, accelerating implementations and bringing products to market faster. We simplified our business, including selling a majority stake in our Worldpay Merchant Solutions business, allowing us to focus on our core competencies while strengthening our balance sheet. We streamlined our global operations and right-sized our cost base, and this enabled us to shift investment back into key areas of growth.
We up leveled our talent, bringing in diverse new leaders with new skill sets and investing in areas such as product engineering and software development. Finally, as James will discuss, we implemented a balanced capital allocation framework to invest in growth while returning capital to shareholders. The decisive actions we've taken over the last 18 months, they're delivering tangible outcomes. For example, our focus on commercial excellence has resulted in a 110 basis points increase in new sales margin, while also driving an acceleration in recurring revenue growth. To improve our client-centric delivery, we launched a range of best-in-class solutions and increased our growth product share of our technology capital spend, while at the same time rationalizing overall spend. Through our business simplification program, we realized more than $550 million of cash savings.
Through disciplined capital and financial management, we increased our free cash flow conversion to 95% and returned more than $1.7 billion to shareholders in 2023. As you've seen over the past several quarters, our efforts have resulted in improved consistency in our financial results. We have now met or exceeded our financial outlook for five consecutive quarters, including our first quarter 2024 results that we released last evening. We raised our 2024 EPS outlook, and we're confident in achieving our revenue and adjusted EBITDA, EBITDA targets for the year. We once again raised our repurchase target to $4 billion for the year, and today we're increasing our operating expense savings targets to $790 million and extending our cost-saving programs through 2026. Now, let's discuss our vision for the future.
Our vision for FIS builds on our long heritage of technology innovation and our strength as a leading provider of financial technology. Because we serve the needs of the largest, most complex organizations, we have best-of-breed technology that is consumable by anyone with the highest levels of resilience and security. We intend to capitalize on these strengths to unlock the full power of our financial technology to the world, not just our traditional base of banks and capital market firms, but businesses of all shapes and sizes. Our multi-year strategy is built on three pillars. First, we're gonna leverage our strong foundation, unlocking our enterprise-wide capabilities, innovating on our modern infrastructure, maximizing the value of our industry-leading core solutions, and building on the momentum we've created in capital markets with our leading SaaS solutions.
Second, we're gonna execute to deliver profitable growth by shifting our focus to high-margin software, expanding into new verticals, capitalizing on cross-sell opportunities across our business, and accelerating growth in payments and digital. And third, we are allocating our capital with discipline, improving our cost base, and prioritizing highest growth opportunities, investing to enhance our strategy and extend our lead, driving strong returns from CapEx and M&A, and committing to compelling shareholder returns. These pillars of our Future Forward strategy will put us on an aggressive path to sustained shareholder value creation. It is an ambitious plan, but as you will see, we're well underway on our journey. In addition to communicating our vision and how we plan to execute upon it, I also want to leave you today with three key messages about FIS. FIS is uniquely positioned to lead and win in fast-growing markets....
The blurring of boundaries within financial services will help fuel our continued growth, and we are executing on a highly focused strategy to deliver strong results and drive shareholder value. Our technology underpins the world's financial systems, powering the global economy by moving money seamlessly across continents and time zones, across the entire money life cycle. At any given moment, money is either at rest in deposit accounts and ledger systems, in motion in credit and debit accounts, card networks, and treasury and risk systems, or it's being put to work by asset managers who are trading and lending. And behind each and every one of these transactions is a complex chain of financial activities that must be done instantly and securely.
At every point in the money life cycle, our clients need to know that these transactions are supported with the highest levels of security, reliability, and regulatory compliance, and that's exactly what FIS technology does. Money is at rest through our core and digital banking solutions. Money is in motion, traveling through our payment and treasury and risk solutions. Money is at work, leveraging our wealth and retirement, trading and asset services, and our commercial lending technology. Unlike any of our competitors, FIS is positioned at the convergence of money at rest, money in motion, and money at work. Collectively, we serve a total addressable market of nearly $200 billion. We have a highly diversified revenue model, with 29% of our revenue coming from money at rest, 44% coming from money in motion, and 27% from money at work.
Across this continuum, we are focused on driving high quality, high margin, recurring revenue growth, which now represents 80% of our total revenue. We serve our clients through two primary business segments: banking solutions and capital market solutions. Banking solutions, with $6.7 billion of 2023 revenue, serves over 10,000 clients across its three subsegments: core systems and digital banking, payments, and wealth and retirement. 83% of the revenue is recurring, growing at 4% annually. Adjusted EBITDA margins were 43.5% in 2023, and are poised to expand going forward. Capital markets, with $2.8 billion of revenue in 2023, serves over 6,000 clients across its three subsegments: trading and asset services, treasury and risk, and lending technology. 72% of revenue is recurring, with a growth rate of 6% annually.
Adjusted EBITDA margins were a very strong 50.3% in 2023, underscoring the business's strong profitability growth. This brings me to the next key differentiator for FIS. The evolving and increasingly competitive financial services landscape, it's playing to FIS's favor. It's a wind in our sails. As the traditional silos within the global money life cycle continue to break down and blur, FIS is uniquely positioned to capitalize on this secular trend and drive accelerated growth. Across markets, our clients are navigating a complex set of challenges in a dynamic industry landscape, which are blurring across the money life cycle. These challenges include growing competition from non-traditional competitors, such as fintechs and corporates, continued banking industry consolidation, the further digitization of financial functions, ever-growing regulatory security and threats, and in recent years, significantly higher interest rates and a higher cost of capital.
But perhaps the biggest challenge as our clients are facing is this: keeping up with the rapidly changing consumer expectations. This is no small deal. Consumers want their financial products and services to be as readily available as their streaming services. They want their user experience to be as simple and seamless as their smartphones, and they want their financial services to be personalized to their specific needs. Buyer expectations also continue to rise, and in turn, are driving the changes in the way organizations consume and apply financial technology. Clients want cloud-based, best-of-breed solutions that can be accessed through flexible consumption models, such as platforms. They are striving to create end-to-end digital experiences across their customers' full financial journeys, and they need these solutions to provide the highest levels of security and availability while providing seamless regulatory compliance across the full money life cycle.
Again, these are not small matters, but FIS is uniquely positioned to address these dynamic needs. In fact, we're seeing a blurring of financial services within our own client base. Across both our businesses, our clients are actively looking for opportunities to grow their revenue by expanding.... This is particularly true with our larger financial institutions. Just about every bank, capital markets firm, and corporation in today's dynamic market is looking beyond their traditional business for new revenue opportunities. And as financial services move to the point of transaction, financial institutions, corporations, and fintechs are all looking to embed financial capabilities into the software and experiences they offer their customers in an effort to expand their own growth. FIS's ability to unlock our financial technology to support their growth is at the core of our componentization and platform strategy.
As the demand across the money life cycle continues to increase, FIS has a significant growth opportunity in cross-selling our, our solutions and our component capability to clients across our business segments. In fact, a growing number of clients are purchasing solutions across both our banking and capital markets business. This is particularly true for our larger financial institutions, where greater than 70% are served by both banking and capital markets. Even with this impressive stat, we still see approximately $400 million in incremental amplified cross-sell opportunity just across the two segments. Many of you have asked me why banking solutions and capital markets should be together. Well, as you can see, the two businesses have a significant amount of joint customers. The drive for growth among these clients continues to make our product depth and breadth more attractive.
Additionally, the complexity and regulatory requirements these clients are managing, given their size, makes FIS a truly valued partner as they look to decrease the risk to their operations while improving total cost of ownership with vendor consolidation. And because of our comprehensive offerings, FIS is unique among our peers in being able to serve the financial technology needs of the organizations, large, small, global, and local, across the entire money lifecycle at scale. And while our traditional competitors, they may check a few boxes, no one else has the capabilities that extend across the money lifecycle, from core and digital banking to payments and treasury systems to trading, asset services, and wealth and retirement. In short, FIS runs the table.
In fact, the breadth of offerings is a key reason why we've been so successful winning a greater share of our clients' spend and helping to drive a 10% in revenue per client in banking and a 5% increase in capital markets. Let me share one example with you. A large North American multinational bank, one of the largest banks in the world, with more than $250 billion in assets under management, has been an FIS client for more than 30 years. They started with our core and digital banking, debit processing, and wealth management solutions, and we grew, and as we grew, so did they. And then they began buying capital market solutions such as lending tech, reg compliance, and securities processing. Moving into 2020, they expanded further with outsourced back office and lockbox processing, as well as alternative processing solutions.
In 2023, they became a customer of our modern banking platform, which they used to launch a U.S. digital bank that has now amassed over $1 billion in deposits in its first year. We have a lot more examples like this one, but the point is this: Our clients are able to grow along with FIS, and FIS is able to grow along with our clients. It's a mutually beneficial relationship that delivers value for everyone. And now this brings me to my final key message. Our focused strategy and improved execution are clearly delivering strong results for our shareholders. We're accelerating our leadership in innovation, building on our strong foundation.
As Firdaus will describe, we are ahead of our competition in leveraging the cloud to build what is arguably the industry's most modern infrastructure and delivery network, with more than 90% of our computing workloads in the cloud, a truly scaled technology provider with best-of-breed cloud foundation. Sitting on top of this infrastructure is a scalable, client-centric approach to product design and delivery, and it's standardized on a componentized architecture, which we've been building over the past several years. Why? Because we saw that the lines across the money lifecycle were blurring, that the way people pay, get paid, borrow money, and invest were moving to the point of transaction. As a result, we saw that any business will have demand for financial technology to create unique experiences for their customers embedded into their products.
That meant that clients were gonna need to consume our technology differently than in the past so they could innovate inside and outside their traditional boundaries. This architecture allows us to unlock our FIS technology to enable anyone to access secure and regulatory-compliant financial technology. This creates a growth opportunity for us, both in our traditional markets as well as in new markets with our fintech platform, Atelio by FIS, which you'll be hearing more about later this morning... Now let's talk about how our focused strategy and improved operational execution are driving positive change across our business. As John will discuss, while still early, we're making a great progress in repositioning our banking business toward accelerating high-quality growth. We're modernizing our cores, accelerating growth in payments, and scaling our best-in-class digital solution suite, all while leveraging the Worldpay distribution channel, and we're seeing tangible results.
For example, we've seen a 19% increase in digital revenue across our large financial institution clients. Our initiatives to focus our sales efforts on higher-margin, technology-driven solutions are clearly taking hold. In 2023, we saw a 110 basis point increase in new sales margin, reversing the downward trend we had been experiencing in prior years. In our capital markets business, Nasser will highlight the exciting growth journey that team has been on. That journey has involved componentizing and cloud-enabling our solutions, expanding into new verticals, and digitizing the client experience. Using this playbook, the business has sped up its new solutions flywheel and accelerated revenue growth. Today, greater than 30% of capital markets clients buy more than one solution. We're now seeing greater than 10% growth in new verticals, and 50% of our products utilize advanced tech, all while expanding best-in-class margins.
Our growth strategy, it's underpinned by a highly disciplined capital allocation framework that is focused on creating sustained long-term value for our shareholders. Broadly speaking, our capital investments fall into three categories. The first is organic investments we make in our higher-growth, higher-margin solutions and in componentized microservice technologies. The second is ensuring ample capital is returned to shareholders through meaningful share repurchases and a substantial growing dividend. In fact, we expect to return over $8 billion of capital to shareholders from 2024- 2026. And lastly, we will judiciously deploy capital toward complementary tuck-in acquisitions that fill key gaps in our portfolios and capabilities and meet a minimum IRR hurdle. We believe this balanced capital allocation framework ensures an appropriate level of investment to grow the business while simultaneously returning excess capital to our owners.
In closing, FIS is uniquely positioned to capitalize on growth opportunities because we're a scaled financial technology leader across the entire global money life cycle. We have global distribution and a marquee set of clients, delivering an unmatched suite of mission-critical, best-of-breed solutions. This uniquely positions FIS to capitalize on growth opportunities in large, growing markets and win greater client wallet share. Over 80% of our revenue is recurring, providing us with a more durable, predictable, and resilient revenue stream, allowing us to have a balanced and disciplined capital allocation framework. I'm confident our execution of this strategy will deliver double-digit total returns for our shareholders for years to come. Thank you for being here with us today to hear our story. With that, let me turn it over to our Chief Technology Officer, Firdaus, to take you through our technology journey.
Thank you, Stephanie. Good morning, everyone. I'm Firdaus Bhathena, Chief Technology Officer at FIS, and I'm super excited to be here with all of you today. I'm an engineer by training, a product guy at heart, and I've spent my entire career building delightful experiences and great products that are meaningful and impactful for our customers. Over my career, I have founded tech startups that have been acquired by large tech titans like Cisco Systems and Symantec. I've also had the good fortune of leading digital at a Fortune 5 company, CVS Health, where my team delivered the digital experiences for COVID testing and vaccinating that helped our country get through a very difficult time.
When I joined the team last year, I was very excited to help bring FIS's vision to life, which places technology squarely at the center of what differentiates us and drives value for our customers. We're well into executing this vision, and I'm delighted to be here to share this with you today. I'm gonna spend the next few minutes speaking about our technology strategy and capabilities, how they differentiate FIS in the market, and most importantly, how they drive significant value for our clients. So three messages to kick us off. First, we deliver. We deliver 24/7, 365 days a year because our clients rely on us to run their businesses, and we do so through a highly secure and resilient infrastructure.
Next, we're laser-focused on building leading products and experiences because clients depend on us to compete and grow in this increasingly competitive world, especially in the financial industry. And finally, we're investing in the future. We're investing in next-gen technology, including AI in all its forms, as well as platforms to lead our clients into the future, and we'll talk about how that unlocks value for our clients and for our business. FIS is well-recognized in the industry as the technology provider of choice, with award-winning products across our banking and capital markets business segments. We truly operate at a global scale across money at rest, money in motion, and money at work. Over 90% of our workloads are in the cloud. We have over 250,000 virtual CPUs, and we store and analyze over 200 petabytes of data.
While these are all impressive tech stats, the most important thing for us, of course, is our people. We have over 25,000 technologists around the globe who are always on building, deploying, and maintaining our products for our clients. I'm very proud of our team. Stephanie talked about our vision to unlock financial capabilities for businesses around the world. Here's how technology is bringing that vision to life. Our infrastructure, of course, is the foundation for that vision. Over the last seven years, we've made massive investments in modernizing and rationalizing our infrastructure, consolidating our data centers, and delivering a secure, resilient, and scalable FIS cloud. We were the first to do this in our industry, and once again, we're leading the industry towards public cloud adoption with a laser focus on our clients' needs. This has significantly accelerated our product innovation.
With Stephanie's vision, we're focused on unlocking financial technology to power every business in the world by delivering high-value, market-leading products and experiences. We can do this faster and better than our competition precisely because of our strong cloud foundation, which is a key differentiator for us. You will see a lot of examples of this as I go through the rest of my time with you. We are now a destination for financial innovation for the entire industry through unified access to capabilities across the money life cycle. We have accelerated our journey towards that with a modern, API-driven, composable technology architecture that delivers speed, agility, and security at scale. Our new fintech platform, Atelio, which we are proud to launch and showcase later today, is one of the many great examples of bringing our vision to life.
So let's talk a little bit more about the modern technology architecture that is at the heart of what differentiates us as a world-class tech company. We will always continue to deliver industry-leading, secure, and resilient infrastructure while making a significant push towards the public cloud. On top of that, we are leveraging data and AI across the enterprise. We're enabling the rapid assembly of plug-and-play solutions with seamless and intuitive user experiences across the entire money life cycle. And we are creating a robust fintech platform to provide best-of-breed capabilities across money at rest, money in motion, and money at work. Now, each layer of the architecture has a role to play in ultimately enabling our customers, our partners, and our own development teams to build best-of-breed solutions and enable easy integration of capabilities across our products.
This is something only FIS can do across the entire money life cycle, and it is key to enabling the cross-sell opportunities, the new vertical opportunities, and the market expansion that my colleagues John and Nasser will talk about shortly. We remain committed to strengthening our secure and resilient infrastructure for clients. This is a key differentiator for us, given the highly regulated industry we serve, and we continue to make strong investments to remain industry-leading. We've increased our investment dramatically in cyber resilience over the last few years, and the results speak for themselves. Our threat prevention, average remediation time, and the number of vulnerabilities we're able to proactively remediate have all jumped significantly as a result, blocking over 20 billion attacks through automation and improving average remediation time by 82%.
We're continuing to advance resiliency through innovations such as self-healing bots and AI-assisted impact prevention, and once again, the results speak for themselves. As you can see, we have zero recurrence and major outages across infra and platform ops in the last three years and a 90% reduction in outages over the last three years. Let's talk about our commitment to cloud. We are industry leaders in adopting cloud technology, and we remain ahead of the curve. About 30% of our workloads right now are in the public cloud, and a full 90% are being run in our combined public and private cloud environments. Our learnings and experience in this critical area have given us the confidence to further accelerate adoption, and that is exactly what our clients want us to do.
We built a super-accelerated pathway, a superhighway to the cloud, if you will, not using the old lift and shift model, but rather using real modernization and SaaS to help us innovate, scale, and expand to new geographies much faster. And all of that is resulting meaningful results. Here are three great examples. First, cloud is helping us enable SaaS. Our risk management product from our capital markets business was migrated to public cloud and SaaS and saw a 275% increase in revenue. And at the same time, we cut customer onboarding time in half. Second, cloud is accelerating innovation. In our trade compliance product, our use of cloud technologies accelerated our compute-heavy batch processes by three times and unlocked machine learning capabilities that were inaccessible before. And last, cloud is also helping us unlock new markets.
With our modern banking platform, MBP, we're using the public cloud to expand to geographies and to APAC to access an even greater TAM over the next five years. On top of all of this, we are laser-focused on delivering exceptional software products. After all, that is our core mission as a technology organization. There are three pillars to achieving this. First, we're building modern products and experiences from the ground up. They don't need modernization because they're born modern. Second, we're modernizing some of our legacy products in place, specifically our banking cores. You'll see more of that in a bit. We're investing heavily in product design and delivery excellence in a very client-centric way. We are rapidly evolving the way we design and deliver products to go much, much faster, and you'll see examples of that in the next few minutes.
Now, very importantly, our capital investments are reflecting the step change in how we work. We're deploying capital much more efficiently. We've achieved significant productivity and efficiency gains through modernization and automation, enabling us to do more with less. As a result, we're able to pivot our capital allocation much more towards high-growth product areas. You can see an overall 10 percentage point increase in growth product share of capital across both banking and capital markets, and you'll hear more about that from John and Nasser later this morning. So how is deploying capital more efficiently accelerating our growth? Here are three examples of how we are doing that to build modern, high-growth products and experiences. Let's start with Quantum, our modern digital treasury software. It's completely cloud-native and secure by design.
It has componentized capabilities that can be rapidly assembled into best-of-breed solutions, and all of this is available through APIs. The results are just outstanding: 50% revenue growth and expanding to new markets such as APAC. The second example is Digital One, our digital banking platform with a sleek and intuitive user experience and modern, highly customizable UI/UX. This is exactly what our clients have been asking for. Digital One's modern stack and UX is putting us on track to achieve 8%-10% growth, outpacing 10. And third, our modern banking platform is a next-gen core that is completely cloud native, componentized, and API-enabled, with real-time insights gathered through real-time events. It's the only next-gen core in the industry that does this at scale. We already have 12 clients, including five of the top 20 U.S. banks, that are either live or in implementation.
So let's dive a little bit into what we mean when we say we are modernizing our legacy products. Here is an example of how we're doing that for our banking cores. Traditionally, cores have all been monolithic, with a lot of services built into the core processing engine. We are now lifting capabilities from the core and moving into componentized, composable services that are fully API-enabled. We are reusing modern FIS products that we developed for MBP and other third-party products where possible to accelerate this modernization. Customers can now flexibly consume this through APIs to assemble best-of-breed solutions, whether it's lending for a fintech, real-time payments for insurance companies, or a digital bank-in-a-box to accelerate growth. Our incremental iterative approach enables seamless transitions for our clients and is already underway today. Modernizing our architecture goes hand in hand with how we design and deliver our products.
We are accelerating end-to-end product delivery by bringing together people from the business, product development, and client experience into cross-functional, integrated end-to-end teams that are focused on and aligned to products, solutions that serve our customers. We are enabling our developers with world-class tooling, from coding assistance to automated testing tools to product management accelerators. We're focused on automating and standardizing our deployments so that we do a lot more configuration and a lot less customization with no compromise in meeting customer needs. ... Lastly, but very importantly, we are selectively hiring and upskilling for next-gen expertise. We're doing this across the globe and across all of our development sites. We've already started to roll out many of these changes in our high-growth products, and we're very encouraged by the early results we're seeing.
Where we have rolled this out, we've seen our NPS scores increase 25 points in just the past year, while delivery has accelerated. Quality has gone up, and predictably, predictability has shot up dramatically. We continue to push hard in these areas. There's constant improvement, constant iteration, and we're accelerating the rollout of our product and technology transformation across our entire product ecosystem. One of the most exciting things that we are delivering is our new fintech platform, Atelio, for developers, corporates, and FIS itself, to access our own or third-party capabilities. Tarun, our President of Platform and Enterprise Product, will showcase this for you later today, and this is a huge part of what makes us a true platform for innovation across the money life cycle.
This is a platform that enables access, not just for our existing clients to access FIS's capabilities, but also for new clients and partners who we may not have served yet. It's designed to be agnostic to sponsor banks, bank cores, and tech partners, and we're enabling easy integration with best-of-breed FIS and third-party solutions. We expect this platform will help us not only grow share on our existing client base, but also expand to new clients. Additionally, I need to emphasize how much we're investing in the responsible adoption and scaling of AI across the enterprise. To be clear, FIS has already been using AI for a long time. It's the traditional AI that we're all very familiar with and have been for a while.
We're expanding that now to include generative AI, and we're scaling up the use of data and AI across the enterprise in the safe and responsible manner that our customers expect of us. Our principles begin with cloud first. We have more than 200 PB of data in the cloud. No other company in the world has this breadth and depth of insights across the money cycle. Next, we're data-driven. We are democratizing access to data by investing in enterprise-wide data platforms. Data is the lifeblood of any organization, and our clients rely on us to be able to access the data that our products generate for our customers. Finally, let's not forget that we are in heavily regulated industries. Our AI use cases are developed in close partnership with our enterprise-wide responsible AI council, with risk governance built in from inception through rollout.
Building on these cloud-first, data-driven principles, we are accelerating responsible AI across four vectors. We expect to unlock new revenue streams by embedding AI and ML into even more of our products. For example, in mitigating fraud in 10 billion transactions per year. We're improving operational efficiency, and we saw a 10%-30% boost in developer productivity in GenAI pilots using coding assistance. We are accelerating client issue resolution by over 33% using GenAI-assisted client experience tools. And of course, we use AI extensively in mitigating security incidents across the entire infrastructure. So to wrap up, I am incredibly proud of what our team has achieved in the last 12 months and in our innovation agenda going forward. three takeaways for you. one we are truly a scale technology player.
We have made huge investments in, and we continue to invest in, our highly secure and resilient technology stack that builds on our first-in-market cloud capabilities. Two, we have global distribution and a marquee set of clients. We're laser-focused on our strong innovation agenda to lead them into the future, and I've shared many examples with you today across cloud, next-gen products, data and AI, and platform. And three, we're delivering on our client needs through industry-leading products and delightful user experiences. Technology is the rising tide that lifts all boats through modern, integrated products across money at rest, money in motion, and money at work. Our effective and efficient capital allocation, focused on our high-growth products, is very well-positioned to deliver outsized impact. Thank you so much for your time and attention today, and I'm now pleased to welcome John, the President of our Banking Solutions business.
Today, we all expect banking experiences that are fast, frictionless, and ever-advancing. Our solutions provide everything that a bank needs to be competitive in today's world: faster account opening, managing transactions now with on-the-go facial recognition, and wealth management services that make a world of difference... For us, improving the customer experience is only the beginning. We can help you to work more efficiently, connecting you to your customers by aligning their operations, inventory, and cash flow. To grow as you enter new markets, launch new products, and develop more enduring and profitable relationships, while our banking platforms and robust API library allow you to build on the power of our core systems, delivering customizable innovation.
Today, we're advancing banking for all our clients, turning the complexities of managing real-time banking data and customer interactions into an effortless and unified user experience, helping you keep pace with your customers' ever-changing needs. FIS, advancing the way the world pays, banks, and invests.
Thank you, Firdaus. It's a pleasure to be here today to tell you about the FIS Banking Solutions business. But before I do, I'll start with a little bit about me. I joined FIS in late 2022 from Capital One, where I led our consumer and small business banking segments. Prior to Capital One, I worked at several financial institutions, including Bank of America and Morgan Stanley, and I've served on the board at EWS when we built and launched the Zelle Network, as well as the clearing house as we built and launched real-time payments. The point is, I know what's important to our clients, and I know what our clients need from us. Throughout my 25-year career in financial services, my passion's been around building modern, customer-centric businesses that drive outsized growth. And of course, technology has always been a really big part of accomplishing that outcome.
We are on a very similar journey here at FIS in Banking Solutions. We have a world-class set of assets. I've been a client of FIS, and I've been a client of our competitors, and I can say that no other provider that I've worked with comes close to FIS's competitive strengths or deep domain expertise. To take this business to the next level of sustainable, high-quality growth, we are driving a very purposeful agenda, one that builds on those strengths to deepen our customer relationships and to expand into promising new markets that are a natural fit for our capabilities. We're on an exciting journey here at FIS, and I'm extremely privileged to be a part of it. There are three objectives that I have for today. First, I'd like to familiarize you with our banking solutions business.
I think that some of you may find that the breadth and depth of our capabilities go well beyond what you may have expected. Second, I will outline how we are growing the business by reinforcing our already strong position in core and digital, and by refocusing our commercial engine on proven payments products. Third, I'll share with you how our focused execution on this strategy will put the business on a path to delivering sustainable, high-quality revenue growth in the years to come. Let me start by providing an overview of the banking solutions business. FIS is the largest, most trusted provider of mission-critical financial technology in the world. As Stephanie said, our technology underpins the entire financial ecosystem. We power banks and businesses of all sizes and shapes.
We provide industry-leading products that enable our clients to manage and move money across the full money life cycle. Within money at rest, we provide a portfolio of core banking and digital products. Our core banking technology provides the ledgering and transaction processing that allows banks to manage their deposits and their loans. Our digital solutions power not only the mobile and online capabilities, but the interfaces and workflows used by back-office staff. Approximately 60% of all large and regional banks in the United States are FIS core banking clients. Within money in motion, we provide a full suite of payments products, supporting everything from issuer processing to money rails and the fraud management tools that accompany those products. FIS also operates the NYCE network, which serves nearly 90 million users and provides national acceptance on par with other leading networks.
Overall, our payments technology processes over 17 billion transactions every single year. Lastly, within money at work, we provide products that empower large-scale wealth managers, retirement plan administrators, and financial institutions. These platforms currently administer over $8 trillion in assets. The point is, our banking solutions products operate at scale, and they operate with industry-leading reliability and security. That is what we are known for. Most people tend to think about FIS for our core banking business, and yes, that is our heritage. It may surprise you to know that over half of our revenue today comes from our payments products. There's a tight relationship between these businesses. For example, 70% of our core banking clients process debit cards through the FIS payments products.
And at the same time, we see continued growth opportunities in payments that extend well beyond our core banking clients, and I'll talk a little bit about some of those later in the presentation. Our products are positioned in large and growing markets where we deliver technology at scale. As you can see, our growth rates in payments, as well as core and digital, have been below market rates in recent years. This is due to the issues that Stephanie mentioned, including a loss of focus on both sales and operational excellence in the wake of the Worldpay acquisition. We've done a lot of work over the last 18 months to bring our clients back to the center of everything that we do and to accelerate growth. We've already made a great deal of progress, and we will continue to do so moving forward.
So across these segments, we provide mission-critical technology to nearly 10,000 clients around the globe, from the trillionaire banks to regional and community banks, to credit unions, retirement and insurance companies, and corporations. More than 70% of our large bank clients are also served by the capital markets business that Nasser will talk about in the next presentation. The key word here is mission critical. FIS has built its reputation over decades by providing scaled, secure, and reliable products to some of the largest and most complex banks in the world. This is a competitive differentiator for us, and it's the foundation on which we have been able to grow our business with other customer segments, including smaller banks and corporations.
Today, 20% of the revenue comes from clients outside of banking and financial services, and we see that percentage continuing to grow as the lines continue to blur across the money lifecycle. Many of our clients rely on us for a wide range of needs. It typically starts with their core banking platform. On average, our core banking clients purchase more than 20 products from us. These clients drive 6x more revenue than our non-core clients, and we expect this ratio to grow over time as we continue to build best-of-breed products with complementary functionality and pre-existing integrations. I'd like to make this point a bit more tangible by sharing just one client example. So we recently completed the conversion of Amerant Bank to FIS technology.
Last fall, Amerant adopted our IBS core platform, our Digital One platform, our Payments One platform, and it was all supported by Managed IT. This is a great example, and just one of many, of the types of relationships that we have with our core banking clients. We are excited to grow with Amerant going forward. For our corporate clients as well, the sales journey typically begins with either payments or loyalty, loyalty products, and it expands from there. And again, for these clients, the breadth and depth of our product set is a key reason why they chose FIS. The combination of the depth of our product portfolio and the breadth of our client base provides a powerful differentiator for FIS from even our closest competitors. And we are capitalizing on these strengths and these differentiators to return banking solutions to sustainable, high-quality growth.
In the wake of the Worldpay acquisition, we lost some of our focus on our traditional businesses. We over-pivoted to take advantage of strong market demand for outsourcing. That, combined with winning a few large one-time deals, led to less sustainable revenue, revenue growth and lower margins. In 2021 and in 2022, our revenue was also boosted by pandemic-related spending, particularly in the government sector, and that began to flow off our books as we came into 2023. But beneath the covers, you can see that the heartbeat of this business, core accounts and card volume, continued to grow in line with historical rates. Our recurring revenue, which represents more than 80% of the revenues for banking solutions, tracks very closely with those values.
The margin erosion also reversed in the second half of 2023, as we benefited from the execution of our future forward strategy and a focus on higher quality sales. As we continue these initiatives, we expect to return to 3%-3.5% revenue growth in 2024, with further acceleration in the near future. This brings me to my second key message today, which is all about our strategy for growing banking solutions going forward. We're executing on a three-part strategy to drive accelerated, sustainable, high-quality growth in banking solutions. First, we will continue our efforts to drive operational excellence throughout the business, with everything we do aimed at delivering more effectively and more efficiently for our clients. Operational excellence includes continuing to increase sales productivity and drive higher margin recurring revenue sales.
Second, we'll continue to modernize and deliver next generation core and digital banking products. These products provide best-in-class functionality as well as user experience. We will extend our leadership position in these markets. And third, we will capitalize on opportunities in the payments market by doubling down on areas where we have meaningful growth prospects. I'll now go through each of these in a little bit more detail. We intend to win and grow by becoming the best at anticipating, meeting, and responding to the needs of our clients. And to do so, we will deliver an industry-leading client experience. ... This means being almost obsessive on meeting our clients' needs. We will demonstrate speed and effectiveness in responding to the client's everyday support requests, and we will also consistently deliver new solutions on time and defect-free.
Over the past year, we've made a great deal of progress in these areas, and we will sustain our investments in the people and in the tools necessary to continue on this journey. On the sales side, we've strengthened our leadership team and our management practices to bring greater rigor and discipline to our sales operations. We've refocused the sales team on higher growth products, and we've armed them with better tools and data to identify opportunities, and these investments are beginning to pay off. As you can see, sales force productivity is up 15%, margin from new sales is up 10%, and we see much more room to continue improving these outcomes as we move forward. Our sales efforts also benefit from three key differentiators that are unique among our competitors.
First, we're able to closely partner with our capital markets business, whose 300+ sellers provide us with scaled access to their financial institutions. This represents a potential $300 million cross-sell opportunity for banking solutions. Second, we benefit from our partnership with and our commercial agreements with Worldpay, which provides us with access to many of the world's largest corporates for our leading payments product suite. This includes the NYCE network and our loyalty products, and I'll speak more about these opportunities in a moment. And then last, I'm excited about the new Atelio platform, which provides us with scaled distribution into white space, like fintechs and software vendors. FIS has a meaningful competitive advantage in core processing and ledger technology across banking, wealth, and retirement. We intend to maintain that advantage by continuing to modernize these products and deliver new innovations.
Whatever a client's modernization journey might look like, FIS has the product breadth and the depth of expertise to meet their needs. For community banks, we deliver full stack, end-to-end integrated solutions through our Horizon platform to over 350 clients. For regional and super regionals, our industry-leading IBS solution offers best-in-class commercial banking capabilities. Nearly 60% of U.S. regional and super regional banks use FIS as a core provider. And as this segment of the industry continues to consolidate, we have won the vast majority of the M&A-driven core banking opportunities that we've gone after. We're building our modern banking platform to support a wide range of clients, starting with the most complex banks seeking to modernize their technology. MBP has been built from the ground up as a cloud-native core banking solution.
It is also the only next-generation core with meaningful market share in the United States. Today, we have five of the top 20 largest U.S. banks, and two of the top four largest Canadian banks are customers of MBP. Because MBP is built on a componentized, API-driven architecture, we will leverage many of its modules to accelerate the modernization journey of our other cores over time. In tandem with MBP, we've built API integration layers. This allows our clients to plug in best-of-breed third-party products that complement our product set. This allows us to keep our clients in our ecosystem and allows us to deepen our relationships with our clients. Our core modernization investments provide significant benefits for our clients. These investments will also protect our competitive moat, and they'll create expanded opportunities for us to sell our industry-leading cores to new clients.
Turning now to digital, which is another business where we see tremendous opportunities for growth going forward. Surveys show that the digital experience has overtaken branch location as the single biggest driver for consumers today when they're considering switching primary banks. Businesses, too, are looking for the same kind of modern experiences and mobile capabilities from their commercial banks. Over the past few years, we've invested heavily in building out our suite of digital products for large financial institutions. Our Consumer Studio product and our Digital One Business product allow our clients to create customized, seamless experiences that cut across their customer segments, products, and channels. Our large, large bank digital business is growing at double-digit rates, and those products are now used by over 30 customers who collectively manage more than $1 trillion in deposits.
Because we've built these products on open core agnostic architectures, we can scale them across our cores, and we can even offer them to prospects and prospective clients that use non-FIS cores. So this is a real area of revenue expansion for us. Looking ahead, we are leveraging our market-leading position with our large financial institutions customers to enhance our digital value proposition for regional and community banks. We have eight banks in pilot for our newly released mobile product aimed at this segment, and over the next 12 months, we expect that number to ramp materially... Let me be clear, winning in digital is just as foundational for FIS as winning in core banking technology. Turning now to our payments business, which generates $3.5 billion in revenue for banking solutions, representing almost half of our revenue.
Through our payments products, we serve more than 5,000 clients globally across 68 countries, and it supports more than 17 billion transactions every single year. Payments is a broad area, with products ranging from issuer processing to money rails, value-added services, network, loyalty, card production, and fraud operations. The combination of issuer processing, the NYCE network, and our money rails moves $12 trillion every year around the world. For our corporate clients, we provide award-winning accounts payable and accounts receivable software. On the accounts receivable side, we moved $2 trillion last year alone. This is a large and growing market, and we are well-positioned to capture growth as more volume moves from checks to electronic forms of payment. Fraud is a very hot topic in the industry right now as more transactions go digital and real-time.
My time in banking and at EWS taught me the power that advanced fraud protection tools can bring to a bank and to its clients. Not only to protect the financial system from bad actors, but also to reduce the friction to a bank's customers by speeding up access to their money. This is an area that we are investing in heavily, and we'll be bringing new products to market in the near future. FIS is benefiting from a number of industry tailwinds that will help accelerate our growth in the payment space. Regulatory changes such as Reg II are opening up more cards to our network. The increasing digitization of payments is opening up TAM, and we see very clear increase in demand from clients in both fraud and loyalty. We believe we are well-positioned to capitalize on all of these tailwinds.
So I'll go a little bit deeper into a few of them now. Our issuer processing business is a foundational strength for FIS. Our issuer processing volumes have grown by 5% in recent years as we've added more than 40 FIS core banking clients to these platforms. 70% of banking customers use an FIS issuer processing product, and that said, we still see $500 million of growth opportunity in selling issuer processing to our core clients. So of course, we're placing significant resources towards pursuing that opportunity. Our modern card issuing platform, Payments One, delivers a full suite of functionality. In the last two years, we've invested heavily to enhance Payments One, unlocking leading-edge functionality such as tokenization, buy now, pay later capabilities, self-managed configuration, and advanced card controls through our best-of-breed product suite, product that we call Card Suite.
As a result, we've been winning processing customers beyond our core, particularly the larger global clients, many of whom are also capital markets clients for FIS. Here, too, we see significant growth opportunities ahead. Our loyalty network, Premium Payback, is an FIS success story, and it's one where we see continued growth opportunities. Premium Payback is a pay-by-points network that we incubated, developed, and scaled organically in partnership with Worldpay, which was critical to onboarding merchant partners. More than 55 million cardholders are now part of Premium Payback, and it's supported by over 70,000 locations from some of the largest and most well-known retailers, pharmacies, and gas stations in the United States. Customers value the ability to earn and use points at the point of sale, creating a compelling value proposition for our bank clients.
Merchants value the increased average cart sizes that come along with customers that use Premium Payback. It is clear that the Premium Payback flywheel is up and running. We have commercial agreements in place with Worldpay to help bring Premium Payback to an even wider set of their retail and e-commerce clients, and we believe that there is significant demand from banks who are looking for ways to provide value to their customers. The final area I'll focus on today is with our NYCE network, where shifting market dynamics are opening up exciting growth opportunities. NYCE is one of the largest PIN networks in the country, processing both credit and debit transactions. It's been growing at a healthy 8% CAGR since 2020, as volumes have grown and as we've added new issuing partners to the network.
With the recent Reg II changes and changes to the competitive landscape, an unusually large amount of debit network volume is in motion. Reg II has made e-commerce debit more competitive, opening up TAM and creating an enduring growth vector for our network. We're already in late-stage discussions with 18 issuers to add NYCE in 2024, and we see a clear path to sustained double-digit growth in our network business. And this brings me to my final message today. It's all around the growth expectations for banking solutions. As we execute on this strategy, we are confident that we will deliver sustainable, high-quality revenue growth in the years to come. So let me walk you through the drivers of that growth....
Over the last several years, underlying growth in core accounts and card transaction volume has driven stable, recurring organic revenue growth of about 3% a year, and we expect that baseline to continue. Next, we expect to see an additional 150-250 basis points of growth from the combination of strategies that I covered today. Complementing these initiatives will be targeted tuck-in acquisitions that add to our competitive product set and enhance speed to market. And then partially offsetting these will be about 100 basis points of revenue headwinds as one-time pandemic-related revenue continues to unwind and as we continue to de-emphasize non-recurring revenue. The sum of all of these will allow us to deliver predictable adjusted revenue growth of 3.5%-4.5% with higher recurring revenues.
In summary, I'd like to leave you with three key takeaways. First, FIS Banking Solutions has unrivaled scale as a leading provider of financial technology across the full money lifecycle, and we are well ahead of our competitors when it comes to modernizing our technology. Second, our breadth, the breadth of our product portfolio differentiates us from our closest competitors. We are leaders in core technology, and we will leverage that base to expand wallet share and enter new verticals. And third, we have proven digital and payment products, and we are poised to drive accelerated growth in those businesses. I couldn't be more excited about the progress that we're making in Banking Solutions. We are focused, and we are well on our way towards accelerating high-quality revenue growth.
Thank you very much for your time today, and now I'd like to introduce my friend and colleague, Nasser, for an overview of the FIS Capital Markets business.
Capital markets need a partner who supports the entire investment lifecycle, including both buyers and sellers. That's why we deliver technology and services that advance the way investors and traders around the world move, manage, and grow money and securities. We connect everything they need through intuitive investor portals, sparking smarter investment decisions, and through trading platforms that ensure the best execution by automating collateral and corporate actions, streamlining stock loans and repos, and monetizing assets on the balance sheet. Our solutions support brokers to clear and settle trades and fund accountants to strike net asset values, while our connected systems and services provide accurate and efficient reporting for accounting and tax and regulatory purposes.
By connecting siloed sectors and datasets through cloud technology and open APIs, using RegTech that goes beyond compliance, as well as machine learning and AI to find the risk-return balances for portfolios, we're advancing capital markets for all our clients. FIS: advancing the way the world pays, banks, and invests.
Thank you, John. Good morning, everyone. It's a great pleasure to be here today to talk to you about the capital markets businesses at FIS. I've led this segment now for four years, and I have more than 25 years of experience in the capital market space. Prior to that, I led our international businesses across banking and capital markets, and I've seen firsthand the powerful synergies FIS brings through the union of these two segment. As Stephanie mentioned, the capital markets business has been a consistent growth engine for FIS and will continue to be. When you look at our growth story, three key messages really stand out. First, we've always capitalized on the profound shift in the industry to drive sustained growth within the large and fast-growing markets we serve.
Second, our innovative and end-to-end solutions allows us to take advantage of growth opportunities, both in our traditional verticals as well as new markets. Third, as we continue to execute on this end-to-end solution ecosystem approach, we have set ourself a very clear path to sustain and accelerate our growth. First, let's look at how we are uniquely positioned to take advantage of fast-growing markets. This is our capital markets business at a glance. We are the world's leading financial technology provider for the capital markets industry. We are a $3 billion business with over 70% of our revenue recurring in nature, and we are growing that revenue base year-over-year as we transition to SaaS.
Since 2021, we have grown adjusted revenue by 6% and our recurring revenue by an impressive 9%, and all the while, we have consistently maintained healthy EBITDA of about 50%. We are a global business with over 50% of our revenue coming from international. You heard Stephanie talk about how the money is managed around the world. Our capital markets businesses supports our clients when the money is in motion and when the money is at work. Our three-solution ecosystem, which I'll take you through in a minute, operate within very large and fast-growing total addressable markets. Across these three ecosystems, the capital markets business supports more than 6,000 clients over 150 countries. Our clients range from banks, financial institutions, corporates, and fintech, and each and every one of them rely on us to compete and grow.
Within Money in Motion, we provide actuarial risk management solution to 70 of the top 100 insurance firms. More than 1,200 treasury clients rely on us to process more than 90 million SWIFT messages per year, making FIS the largest SWIFT processor outside of SWIFT itself. Over 150 clients leverage our RegTech solution to help them manage risk and stay compliant. Within Money at Work, we provide mission critical to the largest asset manager in the world, with over 50 trillion of assets on our platform, representing more than half of the AUM in the world. 90% of the top private equity firms depend on us, with more than $4 trillion of assets on our solutions.
We connect investors to over 150 stock exchanges in the world, and on top of that, we process 90% of the world's cleared derivative financial instruments. When it comes to our commercial lending solutions, our clients manage over $4 trillion of commercial loans, and we support the financing of over $400 billion of vehicles on our platforms. To give you now a better understanding of the breadth of our business, let me take you through our solution ecosystem, starting first with treasury and risk. Within treasury, our enterprise treasury solution helps the world's largest banks and corporates manage their cash, protect against liquidity risk, and comply with ever-changing regulations. We also offer a SaaS treasury platform that is award-winning, which is known to be powerful but very easy to use, that serves clients across all tiers.
Within risk now, we have an unmatched set of risk management solutions that help firms protect their assets, ensure capital adequacy, and manage all type of risk and regulation for banks, financial institutions, and corporates. One really good example of the synergies between banking and capital markets is how we have supported our clients last year here in the U.S. with the rise of interest rates. Our banking clients had at their disposal our liquidity risk management solution in the event of further mandates being imposed, just like how we've done it in Europe as well as in Asia. Given the continued demand in RegTech solution in this space, we're very excited indeed about the strength of this business. Let me take you through now our commercial lending ecosystem, where we offer two solution sets.
The first set handles all the digital workflows from origination to credit, credit decisioning, and servicing. This industry has been, and continues to be, burdened with manual and labor-intensive processes, whether it's dealing with credit data, rate resets, or invoicing. Now, our solution automates all of this. The second set of solutions is with our auto and equipment finance platform. It supports the whole leasing journey from origination to remarketing for banks and asset finance lenders. Let me give you another example where we are helping our clients navigate disruption. In the auto finance space, we service the largest auto finance firms in the world. And with the introduction of EVs, and more broadly, the demand for subscription-based services, our auto finance firms have had to rethink their business model.
This is a massive transformation in the auto industry, and our solution is being deployed here in the U.S. to help these firms do just that. Across this entire ecosystem, given the high demand for digital solutions, we expect our accelerated growth to continue. Our third solution ecosystem is our trading and asset services solutions. We handle the full life cycle of functions for the buy side and the sell side firms. This spans from alternative and credit, asset management and servicing, to cross-asset trading, and tax and compliance. We've combined and integrated actually all these solution into one ecosystem to take advantage of the synergies and the convergence of the buy side and the sell side firms. For example, you've seen hedge fund becoming self-clearing. Well, our next generation derivative platform stands ready to support these needs, and we had many successes so far.
Another example is in the securities lending space. We've launched a cloud-native order matching solution that is fully integrated with our securities finance solution. This solution serves the need of both the asset managers on the buy side and the broker-dealer on the sell side. In this space, we are uniquely positioned to respond to the demands of the buy side and the sell side. Now that I have explained to you what these three ecosystem are capable of, I'd like to take a minute to discuss the unparalleled abilities that we serve across our client base. As you see here, no one else in the industry has the breadth of solution, the global presence, and the scale to be able to serve our clients end to end.
Indeed, if you wanted to match what FIS does today, you would essentially need to combine two or three of our peers. In this market, where our clients are focused on vendor simplification, this further demonstrates our right to win. This brings me to our second key message: We are in a very powerful position to grow and expand our business in all the verticals we serve.... This is the market we currently serve for both the traditional and the adjacent verticals. First, within any given client vertical, our capabilities allow us to learn and expand across many solution types. The best example of this is within the banks. As you can see, they rely on us for solution across all ecosystems.
Second, because our solutions are now modular and SaaS-enabled, we've been able to expand to new verticals with great scale and efficiency, from asset managers to insurance firms and corporates. For instance, within Money in Motion, we have taken our treasury solutions from banks to insurance firms and corporates. And within Money at Work, we have successfully taken our asset finance solution from banks to auto and equipment finance firms. Keep this picture in mind as I continue to speak to you about our cross-sell opportunities across any given vertical and across all verticals. Today, 30% of our revenue comes from the markets outside our traditional base. This really underscore our ability to diversify and capture new growth opportunities, and we expect this segment of revenue to grow at a double-digits rate over the next three years.
As an example, in order to help our clients respond to climate risk regulations, we've developed a brand-new climate risk modeling solution. Now, what stands out here is that we didn't have to build this solution from scratch. Instead, we expanded the capabilities of our existing insurance risk solutions, essentially opening a brand-new market for us. Tarun will showcase this solution later on. Now, zooming into our ability to cross-sell across our client base, about 30% of our customers have bought two or more of our capital markets and banking solutions. Our top 10 clients use more than five solutions from FIS. And as we continue to deploy this solution bundle through SaaS, our goal is to further product adoption across our client base.
In fact, we've seen 6% increase in average revenue per clients over the past five years. What's really exciting, though, is our ability to take the same solution, combined with new solutions, into new verticals as the line continue to blur between the banks, financial institutions, and fintech. As an example, one of our largest corporate client, who happen actually to have business lines in energy, food processing, and manufacturing, use solutions, solutions across our entire ecosystem, the same way a large bank would. As you heard from Stephanie, we're extremely disciplined in the deployment of our strategic capital. We are incredibly selective in the growth area we invest in, and we hold ourselves accountable to the return we expect from this investment. I'd like to, I'd like to highlight a few areas where we are deploying capital to outpace the market.
Our treasury and payment solutions serve the market of $11 billion that is forecasted to grow at 10%. Over the past years, we've invested in our SaaS solutions, and we have exceeded these growth targets. In commercial lending, the auto and equipment finance solution has a projected TAM of about 13% and a total spend of about $12 billion. We've enjoyed 14% growth in this business over the past three years. As mentioned, our solutions are well positioned to support the evolving needs in this industry. In the trading as and asset services business, one of the fastest-growing market is in the alternatives. Our solutions support alternative lending, private equity, structured credit, and hedge fund businesses.
This is a $13 billion market that is forecasted to grow at about 10%, and in recent years, we have outperformed the TAM with 15% growth. As demand in this space for multi-asset class, alternatives, and private credit continue to increase in volume and complexity, we're really well positioned to continue to grow in this space. This brings me to our last key message, which is our path forward to sustaining and accelerating our growth while delivering outstanding results to our shareholders. We are building on a successful proven track record of high-quality growth, operating at high EBITDA margin. So what's next? How do we accelerate everything from here?
We expect five percentage points of growth to come from expansion within our core verticals as we continue to distribute, upsell our modernized solution across all the established markets we service. The remaining growth will come across three areas. First, we will continue to expand into new verticals with our modern and cloud-based solution. Second, we will continue to direct our strategic capital to new solution and innovation to capture white space, specifically in strategic solution areas like treasury, RegTech, alternatives, and lending. Third, we will continue to execute in strategic tech in M&A that align to our playbook and allow us actually to expand into new markets. This intense focus will accelerate our growth and expand our margins. So in conclusion, the FIS Capital Markets business is well positioned to accelerate our growth in the years ahead.
First, we are benefiting from secular industry trends in a large and growing market. Second, we serve market clients around the world with powerful, mission-critical, and scalable solutions. Third, our use of capital is strategic and disciplined, with a consistent track record of high-quality revenue growth. All of this gives us a clear path on expanding upon being the largest provider in the capital markets industry, whilst delivering outstanding results for our shareholders. Thank you for your time today, and now it's time for a quick break.
Thank you for your attention. We now invite you to take a short break. Our session will resume in 15 minutes. Thank you.
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May we have your attention? Please take your seats. Our session is about to resume. Please welcome President of Platform and Enterprise Products.
Welcome back, everyone. Let's get started. So 30 years ago, a 30-year-old named Jeff decided to start an online marketplace for books. Over the course of the next few decades, Jeff would go on to create what we today know as the everything store. It became the market leader at scale in helping all consumers with their online retail journeys. It's what we know of as Amazon. What's really interesting, however, is that while Jeff's journey started out in enabling retail experiences for their consumers for purchases online, what his team had to build in terms of infrastructure, storage, compute, and all the adjacencies of technologies to power those retail experiences, those capabilities themselves became so incredibly powerful and had so much scale, it ended up becoming the genesis of AWS. It set off a whole new industry in what we today know as cloud computing.
While the journey for Jeff and Amazon started out in retail, and essentially in books, the technology and investments to enable that journey unlocked the largest adjacent technology market in the world. That journey that Amazon took in creating a large adjacent market is very similar to the journey I believe FIS is poised to take in the coming years. Good morning, everyone. My name—still morning. My name is Tarun. I head up our platform and enterprise products across FIS. I've been here for almost 18 months now. I've had a career spanning technology-first companies, both large and small. Prior to this, my most recent stint, I was at Google for almost a dozen years.
While at Google, I was responsible for building and running our Maps enterprise business, another company and another product in Google Maps that has had a journey very similar to that of Amazon we just talked about. So when I started at Google, Google Maps was strictly a consumer product with a very narrow focus. The job of Google Maps was to get people from point A to point B, and it did that extremely well. However, one of the first key decisions we made was we made the entire technology underneath it and exposed it via APIs to tens of millions of developers around the globe. During my dozen years there, that business grew to heights that I couldn't have imagined. It wasn't because my team or I had this secret blueprint of all the ways that Google Maps could have been used.
Honestly, it was the fact that those developers and creators that we opened it up to, they pushed the boundaries of that product to areas we couldn't have imagined. It was tremendous. Much like Google and Amazon journeys, FIS sits on a powerful set of technologies simply waiting to be unlocked and to be used by a broader range of companies across different segments, different geographies, different users, different markets. That's what brought my journey here to FIS. I genuinely believe there is no company better positioned to shepherd the next phase of financial innovation than FIS. Earlier today, you heard from my colleague, John, who talked about the heritage and depth we have in banking. For instance, 60% of large and regional banks fit our platform, and we processed $ trillions worth of payment volume on banking platforms alone this past year.
My colleague, Nasser, then proceeded and talked about how we power critical financial services across our capital markets business. For instance, 70% of the top 100 insurance companies rely on our platforms on a daily basis. Across both these segments, we have an incredibly storied heritage of serving the financial industry, and we've been doing it at scale, and we've been doing it for decades now. That's important because the genesis of our solutions have traditionally served clients in a wide array of segments. Unfortunately, in the past, most of these solutions resided in monolithic software, and you heard my colleague, Firdaus, talk about how we're also changing that and we're unlocking this.
We are now going to be unlocking these capabilities, and we're now going to enable people to leverage them in new ways, which is creating a completely new market, a completely new adjusted and adjacent market, an addressable market for us and our shareholders. We're doing this today through the launch of a universal platform, where we're going to make our financial technologies available to everyone, everywhere, to meet the needs of not just our clients, but most importantly, the evolving needs of their customers today and in the future. So with that as a background and that as context, I'm excited to give you a quick glimpse into three key innovation initiatives that we're undertaking here at FIS, where we're essentially reinventing our technology for the future, with examples and testimonials from our customers into how we're creating value for all of you, our shareholders.
First and foremost, we're helping banks grow and evolve. Banks are our clients, and we are focused on helping them succeed. We're doing that by providing mission-critical software solutions and incorporating modern architecture, as well as our new user design principles across the board. Second, we're unleashing new value from our data. FIS has access to a wide breadth and depth of our data that we've had for years now, for decades. We're going to be using machine learning and AI capabilities to gain insights and create models so that we can use this data across industries around the world, driving additional value, not just for FIS, but more importantly, for our clients in return. And finally, we're unlocking financial technology to the world. We're using our breadth, our depth, our distribution, and we're going to be unlocking these technologies-...
to bring our financial services capabilities above and beyond what we've done to new, wider audiences. You heard Stephanie explain and talk about how our technology powers global economies at each part of the money life cycle, whether money's at rest, whether money's in motion, or whether money's at work. We are essentially the mission-critical technology that underpins the financial systems around the globe. Our innovation efforts are not just aimed at protecting that position, but they're aimed at actually growing that market-leading position that we have. Banking. To understand how we're helping our banks grow and evolve, it's really important to understand and actually honestly take a step back and appreciate and respect the journey, the tumultuous journey a lot of banks have faced in the past few years.
In fact, just in the past few years, two years, 250 banks in the U.S. have collapsed or consolidated, and that journey's been really difficult to small and medium-sized banks. As we went around and talked to our bank clients, we heard two consistent themes from them. Number one, our clients need access to modern, stable, compliant, and modularized technology. Number two, though, they need to couple this technology with beautiful design, beautiful user experiences that can cater to the evolving needs of the customers that they serve. Let's face it, to all of us, and to the emerging markets, and to users, we live in a world where design truly matters. It just does. And while most large financial institutions have large teams of people dedicated to helping with these modernization journeys and these user-first principles, small and medium banks, they can't afford that luxury.
In fact, they've been reliant on FIS for years to help them bridge this gap in technology that they have. That is why our product and design teams are gonna be placing human interaction at the center of all our products that we build. In fact, let's take a look at how we've taken this client feedback, how we've incorporated some of these new principles in a new launch that we've had in our digital banking products, Business Hub, a unified banking dashboard.
Today's businesses often require eight or more separate applications to manage their financial operations. Their functionality is siloed, and few offer a 360-degree view of business financial operations. FIS Digital One Business Hub is a digital banking app designed to harmonize banking, accounting, and specialized fintech apps into a unified ecosystem with a single login. Designed to enable users to leverage critical data sources into intuitive dashboards, Business Hub delivers insights that drive financial productivity and improve cash management. A guided experience allows business users to intuitively add essential data from a catalog of components and microservices, such as accounts, payments, cash flow, and reporting. Creating dashboards is as simple as drag and drop to put your data exactly where you want. Business Hub comes preconfigured and fully compliant to seamlessly connect to a wide range of accounting and ERP systems.
Once connected, data is pulled for a wide range of powerful business information, metrics, and insights. At launch, we've curated a set of valuable connected apps that enables clients to seamlessly integrate financial products and services into their environment. As the library of connections and components grow, users will be able to connect to even more of their critical services and data, becoming an invaluable tool to managing their business. We look forward to helping business users simplify their financial operations and gain insight into their data with Digital One Business Hub.
Thank you, Hashim. Thank you, the banking team. This is merely just one example of how we're helping our banks stay ahead of the curve by combining powerful technologies and features with data insights, and then overlaying beautiful design principles to help their customers create customized experiences. Another area we're focused on is unleashing and unlocking new value from the extensive infrastructure and data that we have here at FIS. We have access to banking and transaction data because our infrastructure is essentially the backbone of the financial systems around the globe. We are building world-class product teams, and we will be using AI and machine learning capabilities. We will always do so responsibly, however, to develop new solutions that can create value for our clients. A great example from this, and Nasser gave you a preview of this, comes from our capital markets team. Climate risk.
Climate risk is quickly becoming a requirement that's now facing most CEOs and most executives around the globe. Our capital markets team has leveraged the best-of-breed insurance risk modelers that they created and essentially created a climate risk modeler relatively quickly to help companies not just meet their regulatory obligations, but more importantly, protect their critical assets. The solution they built is a pretty spectacular testament to the power of advanced modeling based on the large data sets that we have available here at FIS. The team started out by taking its market-leading insurance risk management platform, leverage its most recent cloud-native additions, and from there, they created a financial model that considers climate risk, ending up in a great product that can help our clients meet their SEC and IFRS regulatory requirements.
What started out as an effort in insurance risk has quickly evolved into an effort that has now opened up so many new markets for us. Our product can serve markets like telcos, retail, banking, leisure, you name it, simply through unleashing the power of our data and unlocking our technology. Let's hear directly from our capital markets team as to how this works.
Climate change is forcing companies to review how they do business and quantify losses from an uncertain future. FIS was able to quickly react to this need for complex climate risk data insights, opening up new markets for our risk management solutions. The FIS Climate Risk Financial Modeler is built on existing APIs, but with a new interface directly focused on the needs of corporates and financial institutions. The modeler harmonizes client data with climate data to provide more proactive foresight into potential risks due to global circumstances. The solution has a simple but powerful concept. A customer uploads the data of their physical assets to run through our models, providing them with a comprehensive assessment of future financial, reputation, and physical risks. Calculations are performed across a customer's entire portfolio, utilizing underlying climate data that is global in nature.
We not only look at the raw impact of climate events, but also consider insurance payouts and more to get a complete financial picture. With SEC and other international disclosure requirements, we can power how companies report to the market and provide confidence to their shareholders. By tapping into our existing capabilities and expertise, we've created a unique and sophisticated offering in the industry, supporting the world's financial system.
Thank you, JP and the capital markets team. That is merely a glimpse into how FIS is leveraging our data, repurposing our technology, and solving new challenges for new markets. AI and machine learning are going to be a key area of focus for us and will remain a key area of focus for us, and you will see it continue to be the foundation of our products and services going forward. So that brings us to my last topic for the day. It's something I've been waiting for for quite a while, actually, my T-shirt should probably give it away, as to how FIS is unlocking financial technologies to the world. So remember, we started talking about Jeff Bezos and Amazon, who essentially started out as a retail shop and then ended up creating a trillion-dollar adjacency market in cloud computing.
FIS is now about to embark on a new adjacent market creation with our technology. The reality is, how and where financial services are consumed is dramatically shifting. In fact, it has dramatically shifted, right? Whether it's the ability for Uber drivers to open bank accounts and get cards through their driver apps, or even the likes of Starbucks and Target offering financial services to all their customers. It's not really hard for us to imagine a world where every single business will want to embed financial services into their products and their user interfaces, and those services are not just going to be limited to cards and account open, but rather they'll be encompassing of all financial services and solutions.
Our rich depth, our breadth, our products spanning the entire money life cycle, and our distribution, as well as our continued investments in technologies, have given us the foundation to open up new capabilities to an even wider audience to power the next generation of financial innovation. 18 months ago, when I started, my team and I had this, what felt like a ridiculously audacious goal, to go and build this adjacency in quick time. Today, for the first time, I'm actually really excited, not just to announce the launch of our fintech platform, Atelio, but also demonstrate it and let you hear from some of our early clients. Atelio is a destination of financial technology to enable customer experiences where money needs to move across the entirety of the money life cycle from point A to point B.
It's essentially the re-architecture of our mission-critical technology into software modules and components that has traditionally powered banks and financial transactions around the globe. Whether it's through APIs, through SDKs, through simple embeddable experiences, our goal is to make this technology available for everyone. The name Atelio comes from the French word, atelier. Thank you to my French colleagues for helping me with that. It essentially refers to a studio or workshop for creators. It speaks to expert creators building beautiful and intentionally designed experiences across the board. A bank could be a creator. A software company could be a creator. You all could be creators. I could be a creator. A creator is any developer out there that wants to build something. Creators is who Atelio is built to serve, but this is important: not just to serve products and experiences that are known......
but rather to also imagine and create new experiences to drive exponential growth and usage of financial products. That's incredibly powerful. The embedded finance market today is roughly valued at $30 billion, with use cases that are becoming more and more prevalent by the day as we speak. Atelio is absolutely built to serve that market, but it's built to do more than that. Atelio is also built to enable our builders to be true market makers for things that have yet to be imagined. See, here's the thing about innovation and change: It rarely ever comes from experts. Rather, it comes from dreamers and builders who just have easy access to amazing tools and capabilities, and they're willing to stretch the boundaries of what is possible.
Atelio is going to provide those tools, those capabilities, that distribution, that compliance, so that our creators, our clients, can focus on what they should do best: create. We aspire to be the foundation for financial innovation, where it's possible for anyone to embed any financial services, whether it's our own products, whether it's third-party products, so that those services can be delivered to customers at their exact point of need. We've been hard at work for the past 18 months, and I can't be more excited about what we're about to do. However, building a truly encompassing and disruptive platform has also required us to change the way we do things. We've had to actually dramatically increase our overall talent density and bring in new talent that's had an outsized impact in the creation of platforms like this across the technology segments and sectors. We've also done exactly that.
The person who built and led biometric payments at Amazon and had a 20-year career as an engineering leader there, heads up engineering for Atelio. The former COO of Twilio, who helped scale the company and take it public, is Atelio's Chief Business Officer. And one of the original product managers at Google Earth, who then went on to become the Chief Product Officer at Lyft, is our Chief Product Officer at Atelio. How about we take a look at what their teams, under their leadership, have actually been up to? Well, you're gonna get a glimpse into what Atelio can do in power, and more importantly, you're gonna hear from some of our early clients on this platform. Let's start with banking. So banking has undergone a tremendous shift just in our lifetime alone, right? Think about it.
Banking started out as physical branches, then it moved to the ATM or ATMs, and John talked about how it's becoming predominantly digital. I have two young kids. The crazy thing is they've never seen the inside of a bank branch. I'm pretty sure they're never gonna see the inside of a bank branch. The next phase of this transformation is probably gonna be even bigger and mark an even bigger shift. Consumers and businesses will want to bank through software and products that they use every single day. They're gonna wanna bank through brands that they have a relationship with, that they have a strong affinity towards. Actually, this is kind of already happening around us, right? You can get a credit card from Apple. You can get a line of credit through Spotify.
If you're an Uber or Lyft driver, you can get cards and open an account through your rider app. These are simply examples of what the industry refers to as embedded finance. And embedded finance can be perceived as a trend that's super disruptive. But here is the crazy thing: It's really important to realize that embedded finance, at its core, and what underpins embedded finance, is still banking. It is still banking in the most fundamental of respects. Banks are essential, and banks that have sponsored embedded finance capabilities have grown at a much faster clip than banks that haven't, almost to the tune of three times faster. In fact, we're starting to see a really cool trend: banks not just embracing embedded finance, but banks going into the space wanting to themselves become embedded finance providers.
KeyBank is an example of a forward-thinking bank that's doing exactly that. KeyBank wanted to find an easier way to create SaaS products that brought together cards, payments, and sub-accounts into a single unified experience for all their commercial clients. Atelio is going to serve as an extension to their core systems, providing card-issuing capabilities via robust APIs that they're gonna be using to build these experiences. Let's hear more from KeyBank as to what they aspire to do.
Today, we live in a world where software platforms are transforming every facet of society, from small businesses, food delivery, supply chain management, and everything in between. Financial services are no different. Customers want to open accounts, move money, and more, all from these software platforms. This requires banks to rethink how they engage and serve customers if they want to thrive in the future. At KeyBank, we are embracing this change, and we are excited to partner with FIS, who is at the forefront of embedded finance. Recently, we launched VAMP, our virtual account management platform, to provide a modern, embedded experience at the heart of fintech use cases with easy-to-consume APIs to power emerging software platforms... With FIS card capabilities deeply integrated into the VAMP solution, we will be able to bring a comprehensive offering to market and unlock new channels at scale.
Customers want flexibility, and we're all for that, and here with FIS to make it happen. Together, we will power the rapid growth of embedded finance. This partnership between KeyBank and FIS will bring comprehensive financial management solutions directly to customers and live at the bleeding edge of transformation.
KeyBank is a great example of how Atelio can enable banks, our largest traditional client base, to offer their own embedded finance capabilities and create new revenue streams for themselves. We're starting to hear from more and more large regional and community banks who are also expressing interest in the embedded finance space. They see this as a tremendous opportunity. They see this as an opportunity not just to drive deposits, drive fee income, but more importantly, also create new markets, new segments, new customers for themselves, and we expect this trend to continue. Historically, though, embedding financial services into your product and experiences has been cumbersome and costly. The reality is, embedding financial services securely at scale is still virtually impossible for a lot of companies, unless you're really well-funded and you've had a large army of people dedicated to this effort.
And even then, this is the crazy thing, those companies are gonna need expertise in things like compliance, risk, processing, issuing, and more importantly, understanding core banking architecture. Atelio is designed to change that. Embedded finance requires a lot of the same things that conventional banking requires, right? Things like card processing, identity management, transaction monitoring, and ledgering. Those are all things that we do pretty well. Those are our core competencies. Actually, those are kind of our superpowers, and they're built into our platform. They're built into Atelio. Atelio takes the burden off our clients to make embedding these financial capabilities super easy and super accessible. I'd like to now highlight a leading brand that builds financial services and products for students, College Ave. College Ave is the second-largest private student loan provider in the entire United States.
Beyond just making traditional loans, College Ave wanted to help students to develop a credit history early in their lives. They came to us a while back and said, "Hey, we'd like a secured credit card program," and we in turn provided them with a white label, Atelio-powered, customized solution to meet not just their needs, but the needs of the students that they serve. Let's take a look at what we built with them.
College Ave is one of the largest providers of private student loans in the country. We are intimately familiar with the challenges young adults face in safely establishing their credit history. With decades of experience in card issuing, FIS was the perfect partner to launch the Ambition Card, a secured credit card that helps college students safely build credit. The no-code white label experience provided by FIS makes the application process straightforward and very user-friendly. With just a few simple steps, users can apply for the card and get a running start on the road to financial success. Once approved, the user can manage their card right from the app. They can fund their account, view transaction history, and make payments. They can also add their card to their Apple, Google, or Samsung Wallet.
We chose FIS for its experience in secured cards and its turnkey solution for helping consumers build credit. Our partnership has enabled us to get to market quickly and easily, helping College Ave expand our product set so we can better serve and offer more to all students. We're excited to continue our relationship with FIS to find new innovative banking services for our customers. The Ambition Card is just the beginning of more opportunities to come.
Embedded finance is a means for non-bank brands like College Ave to offer financial services and capabilities to their customer base. For any platform in the financial services space, and we talked about this earlier as well, compliance has to remain a core tenet. Atelio capitalizes on our years of compliance heritage and expertise to essentially create software solutions that enable us to always keep up with the evolving regulatory landscape. Embedded finance is going to play a major role in the future of financial transactions, and we feel very confident that we're well-positioned to be the leader in that space. This brings us to our final demo for the day. You heard Stephanie talk about our relationship and our strong strategic partnership with Worldpay post the separation. RoyalPay. RoyalPay provides a full SaaS suite to radiology centers and essentially relies on Worldpay as their primary payments platform.
RoyalPay wanted to expand their SaaS offerings to include things like deposits, settlement accounts, commercial cards, and provide it to all their radiology centers around the globe. Their goal was simple: provide a full suite banking solution and experience and make it readily available to all their customers... RoyalPay selected FIS and Atelio for three key reasons. Number one, they wanted to partner with a brand that they could trust, someone that was an extension of their brand heritage. Number two, they wanted someone that could do this at scale for hundreds of radiology centers, thousands of radiology centers across the country, actually, with $hundreds of millions of payments volume flowing through that system. And number three, they selected us because of our strategic partnership with Worldpay.
RoyalPay has been a customer of Worldpay for nearly six years, and the integration between Worldpay's leading industry payments platform and capabilities, as well as our focus at Atelio on issuing, that's things like account, money movement, card processing, that's a partnership made to stand the test of time. Let's take a look.
RoyalPay is an industry leader in patient and insurance payment processing for medical imaging clinics. We've chosen FIS and Worldpay as trusted partners who can scale at our volume for new innovations in embedded accounts. We can speed up medical insurance processing and drive down the cost of payments by eliminating friction where it exists. To start, we will be adding Pay by Bank as a new payment option for patients. When a patient checks in for an appointment, they'll be able to easily connect their bank account and pay in a few clicks, reducing the cost of appointments for both patients and the clinics. We're also introducing insurance processing accounts for both clinics and patients to allow insurance adjustments to be automated and processed up to 90 days faster. Through the electronic health record platform, clinics will access their embedded accounts.
These accounts provide capabilities of traditional bank accounts, like viewing statements, sending money, and spending funds on virtual or physical cards natively within RoyalPay. These new features allow RoyalPay to provide clinics with a seamless experience for managing their financial operations from a single dashboard in ways not possible before. We're excited to continue our partnership with FIS and Worldpay to drive innovation in the healthcare industry.
RoyalPay's use case further underpins something that we're going to see in the market going forward: vertically aligned B2B SaaS and software companies embedding financial services right into their products and making them readily available to small and medium-sized businesses across the globe. We're going to see more and more companies do this. This is actually a really good thing for our bank partners because it drives incremental deposits and transactions for them. It's also a really good thing for Atelio because we get to power the entirety of the money life cycle in these use cases. And this is just such a great example of how we're going to continue to work very closely with Worldpay. Leveraging the expertise, the scale, the distribution of both FIS and Worldpay will enable us to unlock opportunities that neither of us could probably realize on our own.
Thank you, KeyBank, thank you, College Ave, thank you, RoyalPay, thank you, Worldpay, for your ongoing partnership. These are just three of our clients, actually, three of our creators, where we wanted to demonstrate the depth, the breadth, but most importantly, the large flexibility of the products and the audiences that Atelio can serve. Our goal is to get Atelio in the hands of many, many more creators, many more clients, just like KeyBank, just like RoyalPay, just like College Ave, so that they can, in turn, continue to push the boundaries of what can be done and shepherd us to reshaping the arc of the financial industry. What I just shared with you all today should give you a quick glimpse and a very fairly narrow glimpse into all the capabilities that we're working on across FIS.
These were just three of our examples around how we're reinventing product and re-innovating internally within FIS, whether it's helping banks grow or evolve to our modern technology and user design principles, whether it's unleashing new value using AI and machine learning capabilities, or whether it's unlocking financial technologies to the world through our launch of Atelio. FIS truly sits in a very enviable position. We sit at the convergence of money at rest, money in motion, money at work, the entirety of the money life cycle. We're merely just at the tip of the iceberg of what we hope to accomplish, more importantly, just at the tip of the iceberg of what we have the right to achieve and accomplish. I'm really appreciative and respectful of the journey that FIS has taken. I'm really proud of the work that the team's done to date.
But honestly, it's the path we're blazing forward with our clients and our creators that has me incredibly empowered and excited. Thank you so much for your time today. And with that, I'd like to now invite our Chief Financial Officer, James Kehoe.
Thank you, Tarun, and good morning, everyone. Today I'd like to take you through the financial journey that FIS is on, the actions we have taken to strengthen the business, the early results we are already seeing, and why we believe there is so much more to come. We are confident in our ability to deliver accelerating growth and double-digit returns in 2025 and beyond. As Stephanie mentioned, we took decisive actions in 2023, including successfully executing the Worldpay separation, to put the company on a new course and positioning FIS for reinvigorated growth and profitability. We took significant action in 2023 and moved with urgency to set a new course and reposition FIS for long-term success. We reprioritized high-quality growth, optimized operational execution, and rebalanced capital allocation.
Recurring revenue growth accelerated 100 basis points as we refocused our sales efforts and prioritized high-quality revenue. We significantly improved operational execution and delivered over $550 million of cash savings across the enterprise, and we returned more than $1.7 billion to shareholders and resumed share repurchases 3 months earlier than initially planned. Worldpay was a landmark transaction, setting up both companies for future success and allowing FIS to refocus and reset its capital allocation priorities. We finished the year with a strong foundation in place to drive long-term value creation. So how did we do last year? Despite the rapid pace of change across the enterprise, we were laser-focused on delivering on our financial commitments to investors. We delivered four consecutive quarters of strong results, meeting or exceeding the high end of our guidance range across revenue, adjusted EBITDA, and EPS.
We continue to drive strong execution. The left-hand side of this chart shows the size of the 2023 beat compared to the original guidance we set at the beginning of the year. Taking revenue as an example, we finished the year at $14.7 billion, $230 million above the high end of the guidance range. Of course, you have already seen that we had a strong start to 2024. Yesterday evening, we posted a good set of results. Revenue, EBITDA, and EPS all exceeded the upper end of our guidance ranges, and all three metrics showed accelerating growth. This now makes it five consecutive quarters of outperformance, a track record we look forward to building on. The decisive actions we took last year are bearing fruit in 2024.
We are on track to deliver accelerated revenue growth while returning the business to sustainable margin expansion and significantly increasing the return of capital to shareholders. Following our strong first quarter, we are confidently reiterating our existing 2024 revenue and EBITDA outlook, and we are raising our EPS outlook by $0.02 or 4.5%. We continue to anticipate adjusted revenue growth of 4%-4.5%, an acceleration from 3% growth last year. Banking is expected to grow 3%-3.5%, up from 2% last year, and we project continued strong growth in capital markets of 6.5%-7%, an acceleration from last year's 5% growth.
We are confident that we will return to sustainable margin expansion in 2024, driven by our successful cost management program and building off the strong margin expansion we delivered in the second half of 2023. We are forecasting 20-40 basis points of adjusted EBITDA margin expansion, a significant improvement compared to the 40 basis point decline last year. We made substantial inroads in the first quarter, with EBITDA margin expansion of 200 basis points, in line with our prior comments that the margin gains would be front-end loaded. In fact, we expect EBITDA margins of approximately 40% in each of the first three quarters, with higher margins in the fourth quarter due to seasonality. We have raised our adjusted EPS growth by$ 0.22 to $4.88-$4.98, and growing more than 45% on a continuing operations basis.
On a normalized basis, EPS growth is expected to be 10%-12%, including a high single-digit negative impact from Worldpay dissynergies. So in summary, we are well on track to deliver our financial goals and drive accelerating growth across all key metrics. Our strong balance sheet and improved free cash flow generation gives us the confidence to once again raise our target for capital return to shareholders. Yesterday, we raised our 2024 share repurchase goal by $500 million - $4 billion. This brings our total capital return to $4.8 billion, inclusive of approximately $800 million of dividends. We continue to target a year-end gross leverage ratio of 2.8x and remain committed to maintaining our investment-grade rating.
Moving now to medium-term guidance and the compelling thesis that lies ahead, you will hear three key messages: accelerating top and bottom line growth, consistent and disciplined capital allocation, and double-digit total return. Our confidence in accelerating revenue growth is underpinned by resilient underlying recurring revenue trends and our focus on faster-growing verticals and products. Starting first with banking, this chart summarizes what you heard from John, and the numbers are intended to represent annual growth rates over the two-year period of 2025 and 2026. Overall, we are forecasting an acceleration in adjusted revenue growth to 3.5%-4.5% annually. There are three key drivers in banking. Underlying growth contributes three points of growth and includes revenue growth from our existing client base, driven primarily by steady recurring growth in accounts and transactions. Think of it as a same-store metric.
As our customers grow their accounts on file or process more debit transactions, our revenue grows with their transactions. This is a stable and predictable revenue stream, driven by relatively consistent account and transaction growth over time. Second, expanding into faster-growing product categories contributes 150-250 basis points of growth, and this includes a further push into faster-growing segments such as digital and payments. This will come from both organic initiatives and tuck-in M&A that will need to be fast-growing, highly synergistic, and complementary to our existing offerings. All of this leads to mid-single-digit recurring revenue growth, which will be slightly moderated by slower growth from non-recurring revenue. Adjusted revenue growth is projected to grow 3.5%-4.5%.
Capital Markets continues to benefit from strong tailwinds in the markets in which we operate, allowing us to confidently forecast high single-digit adjusted revenue growth. Revenue growth is underpinned by 5% growth from the segment's traditional segments. New verticals and products, together with tuck-in acquisitions, will add 250-350 basis points of growth, resulting in an impressive revenue growth of 7.5%-8.5%. So what does all of this mean for FIS's revenue growth? We are forecasting an acceleration in adjusted revenue growth to 4.5%-5.5%, up from 4%-4.5% in 2024.
At the macro level, our projections are underpinned by attractive TAM growth, steady underlying growth in banking and capital markets, our push into higher growth verticals and products, including acquisitions, which are expected to contribute 100 basis points of growth and improved commercial execution. Overall, we continue to expect strong, high-quality, recurring revenue growth, which will continue to grow faster than adjusted revenue growth. Turning next to margin, we expect sustainable year-over-year margin improvement of 40-60 basis points annually, and we will achieve this despite absorbing dyssynergy headwinds of around 95 basis points per year. Let me walk you through the high-level margin drivers, moving from left to right. Operating leverage and product mix will drive 80-90 basis points of margin expansion. This leverage is structural, and we expect it to continue well into the future.
Cost savings are being ramped up and will contribute 165-175 basis points of margin improvement. This will help counteract the margin pressure we are facing from ongoing inflationary cost increases and Worldpay dyssynergies. The cost increases of 110 basis points include annual salary increases, talent recruitment, and select investments to drive top-line growth. Finally, we are expecting around 95 basis points of margin dilution annually from Worldpay dyssynergies as we lose the TSA income over the next two years. As the TSAs roll off, we will be implementing new cost optimization programs to realign our fixed costs with the lower levels of activity.
We expect accelerating margin expansion over the next two years, with 2025 closer to the low end of the 40-60 basis point range, and 2026 approaching the upper end of the range. Beyond 2026, these synergies will no longer be a headwind, and OpEx cost savings will likely be moderately lower. As such, long-term margin expansion should exceed the high end of our 60 basis point margin expansion range. We are expanding our OpEx cost savings program beyond 2024 and raising our OpEx cost savings target to $790 million by 2026. We are entering a new stage of cost management with more focus on reinventing our back-office functions, optimizing our technology infrastructure, and leveraging GenAI, machine learning, and outsourcing to reduce our OpEx footprint.
These cost-saving projects are already under development, and we have a comprehensive set of initiatives spanning a multi-year period. This program will create the muscle needed to counteract the lost TSA income and ensure long-term margin expansion. Capital allocation is an important pillar of our value proposition to shareholders. We are committed to a balanced long-term capital allocation framework, ensuring appropriate investment in the business while returning capital to shareholders. We expect to improve adjusted free cash flow conversion to more than 90% going forward, above the 85%-90% conversion we are targeting in 2024. We will hold CapEx at 7%-8% of revenue, and working capital improvements will also help drive improved conversion.
We continue to target a long-term gross leverage ratio of 2.8x, enabling us to maintain a strong balance sheet with the flexibility to return significant capital to shareholders. We will pay an attractive dividend that grows in line with our adjusted net earnings, and we are allocating up to $1 billion annually to M&A, ensuring that we are making the appropriate investments to sustain longer-term growth. Finally, we are committed to a consistent share repurchase program, targeting between $800 million-$1.2 billion of annual buybacks through 2025 and 2026. Before moving on to our medium-term earnings growth, let me first share some of the below-the-line items that you can consider as you work through your modeling.
While we are benefiting from lower interest expense in 2024, we do expect interest expense to be a headwind going forward, negatively impacting adjusted EPS growth by approximately 2 percentage points. The net weighted average interest rate will be closer to the lower end of the 3.5%-3.9% range in 2025, increasing closer to the upper end in 2026. We are now projecting a lower tax rate of 12%-13%. Tax optimization initiatives will provide a tailwind to adjusted EPS growth, helping to offset the expected negative impact from rising interest rates, interest expense. The Worldpay EMI contribution is estimated at approximately $445 million in 2024. Beyond 2024, the EMI contribution is expected to increase 7.5%-9.5% annually.
Lastly, as we continue to emphasize increased disclosure, we are providing you with an outlook for non-GAAP cash expenses through 2026. With that, let's move to our medium-term earnings outlook and the compelling total return framework. In summary, we are confident in our ability to deliver sustainable adjusted EPS growth of 9%-12%. Revenue growth will continue to accelerate, with 2026 trending towards the high end of the guidance range. Importantly, the revenue will be durable and high quality, with recurring revenue growth trending above adjusted revenue growth. We will deliver consistent margin expansion of 40-60 basis points annually, underpinned by our enterprise cost management program. Share repurchases will contribute a net benefit of approximately three percentage points of EPS growth over the two-year period, with 2025 boosted by the carryover impact from the deployment of Worldpay proceeds.
Adjusted EPS is projected to grow 9%-12%, resulting in a 2026 EPS of >$6. When you factor in our above-market dividend yield, this leads to an 11%-14% total return to shareholders. With these synergies behind us post-2026, we will be well-positioned to further accelerate adjusted earnings growth beyond our current 9%-12% projection. The strong recurring nature of our revenue streams, inherent operating leverage, and commitment to value-creating capital allocation leave us confident that we can deliver this level of return consistently across both stable and more uncertain macro environments. In closing, let me highlight why I believe FIS represents a compelling investment opportunity.
Our predictable recurring revenue growth and sustainable operating leverage, coupled with our strengthened balance sheet and much improved free cash flow generation, leave us in a strong position to accelerate revenue and earnings growth going forward, delivering a compelling double-digit shareholder return. I'm very excited about the future at FIS, and I hope you'll come along with us for the next leg in our journey. Now, I'd like to welcome Stephanie and George back to the stage to begin our Q&A.
Get some water. Thank you. Oops, George. Okay, so I think we are ready to begin the Q&A portion of today's event. If you would like to ask a question, if I could ask you to just raise your hand. Once called upon, you could just click the button on that really, really cool next-gen microphone we've, we provided you with. I will ask you to clearly state your name, your affiliation, and if you can, please limit it to one question so we could accommodate a number of analysts. And with that, why don't we start right over here?
Hi.
Gotcha.
Jason Kupferberg, Bank of America. Thanks for all the content today. Really appreciate it. I wanted to hone in on the revenue growth algorithm, and particularly narrowing the focus for purpose of the question within banking. You've got that 1.5%-2.5% coming from high growth products, digital and payments specifically. Can you just delve into some of the competitive differentiation that you think will enable you to achieve that? It just feels like that's the swing factor here in the overall-
Mm-hmm.
Banking piece, and I know there'll be some M&A, but would just love to get some deeper thoughts on, you know, how you, how you drive that.
Sure, I'll take that one. Yeah. So, on digital, you heard John talk about, we've been investing, and we think have really best-in-class digital products, primarily focused in our LFI space. So, as John talked about, it's more than mobile and web. It also includes the back office capabilities, our digital consumer product, and our business hub, which really helps... If you're a bank that's a commercial banking customer, you need both of those to deliver out. So we've been having a lot of success in both sales and revenue. Since we started about 18-24 months ago, we've made a significant push into developing our Digital One Flex product, which is really re-energizing, reinventing digital for our community bank space. So we think there's a very significant opportunity in the community bank space that we serve already today.
We have digital products out there, but as Tarun talked about, the customer experience, how it looks and feels, is really critically important. When we talk to our community banks, in order for them to compete with the large banks, they're relying on us. So that digital capability, how it looks and feels, is super important because their customers expect a very, very unique experience. So that's where we think we're gonna really push into the digital space, so it's cross-sell digital into our existing base. On the payment side, you heard John talk about, really lost a bit of focus in terms of execution in the payment side of our business on the banking side. We really spent a lot of time on the Worldpay merchant acquiring side.
So as we look at our payments business, and you can see the wheel John talked about, we have a lot of payments products. 50% of our revenue is in payments, and in its products that we have in market today, issuing, debit issuing, credit issuing, prepaid, AR, AP, network, and, you know, the NYCE network is a very significant network. It's very differentiated for us, and there's only a certain amount of networks in the country. So when we think about where are we gonna put focus, it's in that payment space. We have a lot of opportunity to cross-sell our existing core base still with digital- with debit and credit, and prepaid. And then we start to think about AR and AP, which are award-winning products for us. We are adding a lot of distribution into our sales channel for that.
And then we think there's a lot of movement and opportunities associated with NYCE, as John talked about, Reg II, and things coming, and people really looking at what they're gonna do with their network business. So those are some of the things that we're looking at. The thing that's exciting for me, as a historical payments person, is knowing a lot about that payments business, but also, we don't have to invent anything. It's nothing new. We have all these products. We need to execute better, we need to focus, and we need to drive delivery, and I think if we continue to do that, we can push and drive accelerated revenue growth in banking.
we go next to Ramsey in the back.
Hi, Ramsey El-Assal from Barclays. Thanks for taking the question. I wanted to ask you to follow up a bit on Atelio, maybe for a bit more color on the business model, which of your products and offerings can be accessed by Atelio, and also how significant a driver Atelio is in the context of your, your midterm guide?
Yeah, maybe I'll start with the last one. It's all upside. So right now, we have Atelio in terms—we just launched it today. We're very excited. We've been working with our Lighthouse clients, so it's very new and innovative. We don't have any revenue baked in our model as we think about our three-year plan today, so it's upside. The way to think about platforms business, and that's why we're so excited Tarun and his team are here, is they take a bit of time because fundamentally you want to put volume across the platform. The pricing model will be multiple, and we'll come back to you on it, but it will also be in terms of transactions across the platform, SaaS-based, all kinds of different offerings, depending upon the product that people are consuming. So more to come on that.
We move... David.
Yeah. Hey, guys. Thanks. So thanks for all the color. It was great. In the banking business, has there been a divergence at all between smaller banks growing from CPI escalators, account growth with rates going up, and then bigger banks? You know, we've seen Accenture, Cognizant, showing slower trends with big banks. Is there a chance that that kind of flips for you guys going forward? Maybe just talk about kind of the mix between the two growth rates.
Yeah, I mean, I, I would say broadly, we're concentrated in large financial institutions, so it makes up the majority of our revenue. That growth continues to be consistent for us. I think what you're seeing out of the folks you mentioned is where they're pulling down discretionary spend. A lot of what they're doing with us is not discretionary, and so they're taking a lot... You know, we're mission critical. So we haven't seen big pull downs in discretionary spend, but we're not a big discretionary spend type, seller. In the community bank space, and I would say broadly across the board, people are really focused on digitization, providing those digital tools. So that's why digital is such a big opportunity for us.
So whether you're big or small, your digital experience is absolutely critical, not just to your consumer, but also to your commercial. I think every bank is looking at gathering deposits. So we talk to every single one of them. They're no longer worried about liquidity. They want to be the primary deposit account for whatever business they're banking. And so when you think about that, we think about our treasury solutions that help them gather deposits. Our digital assets have to help them gather deposits. And then, when you think about BPS and Atelio, that also helps them gather deposits. So we see consistent across the board, in terms of consumption, a little bit different in terms of the markets they're serving, but don't see a huge divergence in growth rates between the two.
Tein Tsin?
Hey, thanks, George. Yes, Tien-Tsin from JPM. Just want to ask on the componentization strategy, that's a big, important bet, and how pervasive that is and what the impact is on the P&L. I'm thinking, is it more on the front book, Stephanie? Is this also a change for the back book as well, as you think about componentizing? 'Cause you referenced the old days of outsourcing, when I think of outsourcing, it's high TCV, but high implementation cost. If you're going to componentization, it's gonna be much lower delivery cost, but you're selling to developers, but probably more R&D and more sales and marketing. So should we be thinking about a trade-off of lower COGS with higher R&D and potentially sales with this shift? I'm just curious how pervasive that is, if you follow my question.
Yeah, I do. I think what was probably unknown very well about FIS is we've been on this componentization strategy ever since we started putting everything in the cloud. So we were first to put all our technology in the cloud, and then we started modularizing and componentizing the technology. Because when you serve large banks, they require best of breed. So, you know, we serve a lot of cores. We have those cores that we talked about, which is monolithic, but when you talk to large financial institutions, they want a piece of it. They don't want the whole thing of it. So we've been on a componentization strategy, which has been in our technology spend. So I don't—you didn't see us anywhere talk about needing to have an increased amount of investment. I think you've seen us actually consolidate and focus our investment.
This componentization strategy has been here for a number of years. In fact, you might remember us talking about it called Banking Platform Solutions. That's been invested, and that's been there. It's been required by banks because people don't want... They—we, of course, want them to take all of our products, but they want to have a best of breed strategy, especially if you're large, and so we've had that. I think about the front book, back book, I don't see a big shift in the P&L. What I effectively see with Atelio is, now you're looking at us taking effectively bank tech and enabling it so that it can be sold into fundamentally software-embedded finance, where the financial transactions are going. We obviously still want to serve all of our financial institutions. They're critical to us. We'll componentize it.
It allows them to consume it in best of breed, but then we need to be able to unlock it so we can follow that, and they can follow that embedded finance capability. But I don't see a huge shift in our P&L, at least for right now.
Sorry, in the back there.
Hi, Chuck Nabhan from Stephens. Thanks for taking my question. I wanted to ask about the public cloud slide earlier, and just hoping to get a little more color around the migration. I believe, if I remember correctly, the mix was roughly 60 FIS Cloud, 30 public cloud, and just wanted to get a sense for what that could look like over the next few years, next few years, as well as any implications on margin and revenue.
Thank you.
Yeah, we knew we were going to get a cloud question, didn't we? So the cloud strategy that FIS has employed is we were first to market in terms of moving the majority of our software into the cloud, first private cloud, and then we started utilizing public cloud. That strategy has been historically enabling us to unlock new geographies, new products. So new products that we have are built in the public cloud, cloud native, as Firdaus talked about. I think as we think about the journey, we need to come back to you because as James talked about, our next generation of cost savings and focus is really around how do we reinvent the back office? And when he talks about that, he means corporate functions, but also technology.
So as we take Worldpay off of our systems, we obviously have a bit of an overhang on the technology side. So we have Firdaus here, really focusing on what's the next generation of our cloud technology look like? Can public cloud fundamentally, significantly change the cost structure to help us feed those TSA dysynergies? And so more to come on that. Right now, our public cloud strategy has been more about how do we get to market faster? How do we develop products faster? How do we serve clients faster? How do we be in different geos where we don't have a private cloud? That's been where it's been. So more to come on that.
Yeah, we have made specific assumptions regarding cost savings and the cost savings number with regards to cloud. But with the journey, we'll, we'll do it on a DCF basis, looking at revenue uplifts, looking at cost improvements. I think we're, we're not going to be blunt on this. It's not for cost; it's for the overall return to the business, client satisfaction, revenue upside, and cost optimization. So it—but it'll be very DCF driven. Yeah.
David.
Thank you, David Togut with Evercore ISI. Can you comment on 100 basis points of annual revenue growth you expect from acquisitions? What will be your acquisition criteria? What particular, you know, product or technology gaps are you looking to fill?
Great question. So I would say, first of all, we will be very judicious with our capital. I think you hopefully heard us hit over and over again in terms of the M&A and capital return strategy is very balanced. And fundamentally, when we are looking at the M&A, we think it's really important to help drive revenue growth, but it also will have to have a high hurdle rate. Now, in terms of what we're looking at, the beautiful thing about FIS is it is a scaled technology with global distribution. And so if you think about what we're looking at, fundamentally, we're looking at buying products or capabilities we can put on our technology and distribute through our global sales and relationship management team.
And so when you think about that, that helps our business case very much because we immediately accrete margin, and we accrete revenue. So we've been very deliberate here in terms of being very focused on where we are going to grow. You've heard us talk about payments in the banking business. You've heard us talk about commercial lending as big growth opportunities in the capital markets business. And so we're really looking digital payments, commercial lending are probably the areas you would see us make some potential M&A.
Yeah.
Hey, guys. Thanks. It's Darren Peller from Wolfe Research. I just... I want to start a little bit on the banking side and just make sure we understand your confidence around the core businesses that you've been in for many, many years, Horizon, IBS. You talked about modernization of it. So I just-- what is your conviction that you're going to be able to succeed in that, and make sure you can keep up? And then maybe quickly shifting to the cap market side also, a little more of an understanding, if you'd almost want to rank what you're most excited about, treasury, commercial, it's still a segment that we want to get a better understanding of.
Yeah. Well, we love them all the same. But we'll come back to that. Sorry, remind me again the first one. You distracted me.
Better, better understanding of the cores.
Oh, Horizon—the cores. So look, I think that one of the fundamental strengths of FIS is the cores, and we've spent the last couple of years talking to you a lot about Modern Banking Platform, MBP, which is critically important. But that's been a TAM expander for us, thinking about, you heard us talk, it's in 5 of the top 20 banks in the U.S., two of the top four. But we have 3 strategic cores that are fundamental market share gainers. We have Horizon, which is for our community bank cores, IBS for our commercial bank cores, and MBP, then up very up, much upmarket. We have a lot of conviction around our ability to win in that space. I think if I pulled John up here, he would feel very good. We're in every single core deal.
As John mentioned, for IBS, which is primarily that commercial bank customer world, we've won almost the majority of those banks that have been in motion, either through M&A or through RFP processes. We feel really good about the core. The cores have significant amount of strength, what they provide and deliver to the banks, the banks need, and so we feel really good about that being a competitive strength for us. You're not hearing us talk about abandoning the cores. You're not hearing us talk about putting something on top of the cores. Core, fundamentally in banking, is what our strategic advantage is. I think what you're hearing us say with respect to banking is, we lost a bit of focus on the payment side of the business, not necessarily the core side of the business, and so we still think it's fundamentally critically important.
Then on capital markets, am I allowed to save a favorite? No. We love them all dearly, but I think what you would see if you know, you saw in Nasser's slides, where he's been really focusing. In the trading and processing world, what's really exciting about that is the ecosystem he's built to deliver all those capabilities, buy side, sell side, alternative, no matter what's happening in that space, he's now componentized and offer those products and services out in a SaaS way, which enables him to, you know, really deliver the ecosystem broadly. But really, where you've seen him take the business and why it's growing so quickly is because he's been able to take what our traditional treasury, for example, enterprise treasury solution, build a SaaS treasury solution that he can now sell out to corporates.
You saw JP talk about treasury risk, you know, the risk products. So as you think about where growth is, where TAM is, where we have big demand, those are pretty exciting, and that's what's been driving the stronger growth in capital markets. You know, hopefully today, you understand what capital markets is. It's been somewhat of a big secret. We've kind of kept it behind the curtain. Hopefully, this is the big unveil of it, and you can see why we have a lot of confidence that it can grow faster than the 5%, because of the new verticals that we've been accessing in it.
That's helpful. Thanks, Dana. Chris.
Thank you. Chris Kennedy from William Blair. Cross-selling is a big opportunity for you. Can you just talk about the initiatives that you have to capture that opportunity? And then from an investor standpoint, how do we track how you're doing in that?
Yeah, so there's two pieces of cross-selling I think that we highlighted. One, John talked about the cross-sell opportunity that still exists within banking, cross-selling our core banking customers more payments. You know, so when we think about, you know, why we feel so confident, it's we've you know, we've successfully cross-sold into that. 70% of those core customers take our debit issuing. There's still a very significant opportunity. So when we started and took a different approach to sales at the beginning of last year, that was the first place we started. We started talking about selling high margin, high recurring debit, and so we've been tracking that very closely. The second piece of cross-sell that you can see we're very excited about is across banking and capital markets.
Even though 70% of the large financial institutions take products across the two, there's still a $400 million worth of amplify cross-sell opportunity. So we will continue to give qualitative information. I don't think that we'll quantitatively put it out there, but that's what underpins our confidence when we changed the approach to sales and said, "Let's get back to selling high-margin software," that's exactly where we are going.
Well-
Any questions for James? I thought he'd get all the questions.
I think you'll get one now. Presented so well.
Yeah.
I may disappoint on that, but I just want to ask a question on Atelio, actually-
Sure
and the go-to-market plan. I think particularly around non-traditional, so like non-FIs, I think the example you gave was sounded like a referral from the Worldpay side. But how are you thinking going forward about the go-to-market for kind of non-traditional, non-FI customers, and how do you kind of make Atelio a household name among kind of developers and software companies?
Yeah, it's a great, it's a great question. So we're gonna, we've started a small sales force that would sell direct, but frankly, we're really looking, it's a platform that we're really looking to host developers. So our first distribution channel is our banks. And as Tarun mentioned, we've been talking, many banks have been reaching out to us even prior to this launch because they're all looking to figure out how do they gather deposits, how do their commercial banking customers, remember, those software companies are their commercial banking customers, and they're seeing them potentially lose that business because they can't provide the money movement capabilities or the deposit-taking capabilities because they need an API-enabled capability to do it. So the first part of the distribution is really through our own sales channel and our own existing banks.
Then the second most important part of the distribution is our partnership with Worldpay. So Worldpay – embedded finance, the first decision typically by a software company is who their payment provider is. And so that's why the Worldpay distribution channel and strategic partner is so critically important because they have a very large amount of software developers that they provide payment processing for. And so we're partnered with them very specifically to make sure that the embedded banking pieces of those, we can provide into their platform, and they can provide out to their customers. So RoyalPay is a great example of that. So we don't look to have a humongous, a direct sales force. We're really looking to leverage our banking channel that already exists and Worldpay's channel that already exists.
Tim.
Great. Thank you. Tim Choid, UBS. I think the stat was close to 60% of large and regional banks are using an FIS core. I was hoping you could talk a little bit about the other 40% and the state of where they're at. Are they using something in-house, a competitor, and to the extent that FIS might already have a relationship with those in another product?
Yeah. So I would say broadly, the other 40% is split between in-house cores still. So there's still quite a few cores, banks that are running their own core. It's software that's been there for 30 or 40 years, and then some of our competitors, obviously, provide core banking solutions for the rest. But regardless of whether you're a large regional community bank or... You are on a modernization journey, period. And that modernization journey has less to do with the technology and more about fundamentally serving your clients in a digital way. So it's about digitizing. So they're usually talking about modernizing their core because they need better digital products for their commercial, their commercial customers. We need to modernize our core because we need better money movement capabilities. What do I mean by that?
Smaller community banks typically have outsourced the money movement capabilities to large financial institutions. They don't want to do that anymore. They want to provide their own ACH, their own real-time payments, their own wire, their own FedNow. So when we talk to core or banks about cores, it's typically being driven because fundamentally they know they need to change their business. They know they need to be able to distribute their own products digitally, omni-channel, and those capabilities they need through a modernized core. So the nice thing strategically about our cores is all of them are being modernized. You don't have to go somewhere else. You don't have to jump to MBP to be modernized. Each one of those cores is being modernized, and you can stay on that core, and we will modernize you along the way.
Trevor, with a question for James.
James is in luck. So Trevor Williams from Jefferies. If I could ask one actually specific to 2024, going back to last night. So the, for banking, the implied second half, you've got about 200 basis points of accelerating growth embedded for banking. If you could just talk to the visibility into that. I know you've referenced stronger new sales in the second half of last year that help. You've got some easier professional services compares, I think, in the fourth quarter. But if you could dimensionalize between recurring and non-recurring, where that couple hundred basis points of acceleration comes from. Thanks.
Yeah, I think, no, we've got great visibility into it. You'll see that the second quarter is building slightly and accelerating. You know, we're coming from a zero in the fourth quarter. We're coming into a 2 in the first quarter, and we're saying 2-2.5 in the second quarter, so there's a continual acceleration. The biggest single driver is actually lapping professional services. It's now stabilized back on a level that we have typically done over a multi-year quarter by quarter over a multi-year period. So we've stopped lapping the tough comparatives. Two is, you know, we exited last year with a much stronger sales delivery, and that's going to feed into the second half. So we spend a lot of time looking at this, and we're pretty confident in the full year delivery.
Same goes for capital markets. We've great plans laid out and good, very good visibility.
Carter.
So, Stephanie, you've talked about cross-selling into community banks, offering them digital. I'm just wondering, you know, you talked a little bit about execution being a problem previously. And so as you stand today, what's happened to market share as far as the community banks are concerned for FIS? And, you know, if it has declined or hasn't increased, what can you do to change that?
I think we're really focused. Obviously, our, our revenue is primarily recurring, 80%, and you can see our recurring revenue in banking is underpinned primarily by account growth and transaction growth, so same-store sales growth. We've seen, you know, we have high levels of recurring revenue, high levels of retention. In the community bank space, I think nothing different than historically. It's a competitive space. There's a couple of us that compete in every single RFP. When you're looking at why you would choose FIS or why you would stay with FIS, there's a couple of things that typically resonate. One is we do have best-of-breed product, and because we serve the largest, most complex financial institutions, when you look at our product set and you're in a community bank space, we do typically win on best-of-breed product.
I think the other thing that you would hear the community banks talk about is our focus on client centricity. So I think since I took the chair about 18 months ago, you know, we refocused back into banking, and we refocused around being client-centric. And what does that mean? That means we answer the phones faster. That means we drive implementation. Putting a digital product out with high quality, with a beautiful customer experience was critically important. So making sure that we get implementations done faster, making sure the customer experience with us goes faster. If you talk to my team, we have all kinds of dashboards and KPIs around client centricity, speed of the product development flywheel, implementations, quality, all of those things, fundamentally, so that we can continue to retain our clients and in particular, the community bank space.
But I would say it's the same competitively as it's always been. I think banks are looking, you know, like Tarun said, it's in the community bank space, they look to all of us to provide them with the best-of-breed products so that they can compete with the bigger banks. They don't have the technology and operations teams to be able to build these types of products, so product capability is really important.
It's Jamie at Susquehanna. And thank you for doing this today. So I'll share the love with James. Was wondering, could you help us with the calculus of what percentage of revenue you anticipate will be recurring versus non-recurring at the end of the 2026 journey?
Wow!
Well, that's a very detailed one. Maybe I'll give it to George. No, I think it'll continue to slowly build, like over the last couple of years. I'm thinking less than 100 basis points a year at total company. Bear in mind, banking is already well penetrated at 82%. It's capital markets that will grow the recurring at a faster rate. But I think you saw it also in banking over the 2025, 2026 period, the non-recurring continues to be a drag. So you can continue to expect recurring outpacing adjusted. I think with the guidance we gave, you can probably get to the number pretty closely. You know, we do want to emphasize that, the strength and the durability of our revenue. We put a chart in our...
I just want to highlight it in earnings last night. It's the four years of history on recurring in the banking business, and the average over the four years is 4%. That is a solid, recurring, durable revenue stream on the banking business, and we're intensely focused. You asked the right question. We're intensely focused on revenue and recurring revenue being the principal measure we use internally on the long-term health of the business. Yeah.
I do believe we are at time. With that, turn it over to Stephanie.
Sure. Well, thank you everyone for joining us here today. Thank you to the entire FIS team, not only for bringing you Investor Day today, but doing everything they do every day to serve our clients, which is critically important to the success of FIS. I hope you can see how excited we all are about the trajectory of the business and why we're convinced FIS represents such a compelling investment opportunity. We are uniquely positioned to capitalize on our growth opportunities, leveraging our scale, technology, and distribution, serving a marquee set of clients with the broadest suite of best-of-breed solutions, positioning us to consistently deliver double-digit total return for our shareholders. Thank you for coming. We very much appreciate your time.