Cognizant and Flagstar Bank, N.A. Mark One-Year Partnership, Advancing Flagstar's Transformation, Enhancing Client Experience and Driving Efficiency

Rhea-AI Summary

Flagstar Bank (NYSE: FLG) and Cognizant (Nasdaq: CTSH) marked one year of partnership on Jan 29, 2026, supporting Flagstar's multi-year "Simple, Sophisticated" (S2) technology transformation.

Cognizant acted as an extension of Flagstar's Enterprise Technology & Operations team, delivering transformation projects across retail, commercial, mortgage, risk, and compliance, establishing co-branded development centers in Hyderabad and Manila, and planning an AI Center of Excellence.

Key Figures

Partnership duration: 1 year Development centers: 2 centers

2 metrics

Partnership duration 1 year Completion of first year as strategic partners

Development centers 2 centers Co-branded development centers in Hyderabad and Manila

Market Reality Check

Price: $82.45 Vol: Volume 2,832,726 vs 20-da...

low vol

$82.45 Last Close

Volume Volume 2,832,726 vs 20-day average 4,668,335 (relative volume 0.61) indicates lighter-than-normal trading. low

Technical Price 12.94 is trading above the 200-day MA at 11.9, reflecting a pre-news uptrend.

Peers on Argus

FLG fell 1.07% alongside modest declines in peers like ABCB (-0.76%), AUB (-1.07...

FLG fell 1.07% alongside modest declines in peers like ABCB (-0.76%), AUB (-1.07%), FFIN (-1.88%), HOMB (-0.84%), and HWC (-0.03%). Momentum scanner shows no coordinated sector move.

Historical Context

5 past events · Latest: Jan 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 26	Private client expansion	Positive	+0.6%	Opened second Private Client Office on Park Avenue to grow wealth presence.
Jan 14	Earnings date set	Neutral	+0.4%	Announced Q4 2025 earnings release and conference call timing details.
Dec 09	Wealth expansion	Positive	-1.4%	Expanded private bank capabilities and regional model with new offices and leaders.
Oct 29	Dividend declaration	Positive	-1.8%	Declared quarterly cash dividends on common and preferred stock series.
Oct 24	Q3 2025 results	Negative	+4.8%	Reported Q3 2025 net and adjusted losses despite sequential operating improvements.

Pattern Detected

Recent news has often produced small moves, with some positive strategic updates coinciding with negative or muted price reactions.

Recent Company History

Over the past six months, FLG has reported strategic expansion and restructuring alongside ongoing losses. A Q3 2025 net loss of $45M (news 922914) nevertheless saw shares rise 4.76%. Dividend news in Oct 2025 (news 925306) and wealth expansion in Dec 2025 (news 945741) were followed by declines of 1.79% and 1.4%. More recently, a new New York Private Client Office (news 1003399) and an earnings-date announcement (news 957263) saw modest gains. Today’s partnership update fits into this ongoing technology and growth narrative.

Market Pulse Summary

This announcement underscores Flagstar’s focus on its multi-year “S2” technology transformation with...

Analysis

This announcement underscores Flagstar’s focus on its multi-year “S2” technology transformation with Cognizant, highlighting a year of collaboration across C&I, CRE, consumer, and private banking. The creation of two co-branded development centers and plans for an AI Center of Excellence in India reinforce a push toward data-driven, technology-enabled banking. In context of recent expansion in private banking and ongoing restructuring, investors may watch for concrete efficiency gains, client satisfaction metrics, and how these initiatives influence future earnings results.

Key Terms

artificial intelligence, commercial real estate (cre)

2 terms

artificial intelligence technical

"stage for using artificial intelligence and technology-driven banking solutions"

Artificial intelligence is the ability of computers and machines to perform tasks that typically require human thinking, such as understanding language, recognizing patterns, or making decisions. For investors, it matters because AI can enhance efficiency, uncover new insights, and enable smarter strategies, potentially impacting the value and performance of companies that develop or utilize this technology.

commercial real estate (cre) financial

"including Commercial & Industrial (C&I) Banking, Commercial Real Estate (CRE)"

Commercial real estate (CRE) consists of properties used for business purposes, such as office buildings, retail stores, warehouses, and hotels. It matters to investors because these properties can generate rental income and may appreciate in value over time, providing opportunities for profit and portfolio diversification. CRE plays a key role in the economy by housing businesses and supporting commerce.

AI-generated analysis. Not financial advice.

Partnership lays the technology foundation for seamless client and employee experiences, setting the stage for using artificial intelligence and technology-driven banking solutions

TEANECK, N.J., Jan. 29, 2026 /PRNewswire/ -- Cognizant (Nasdaq: CTSH) and Flagstar Bank, N.A. (NYSE: FLG) announced today the successful completion of their first year as strategic partners, marking a significant milestone in Flagstar's ongoing strategic and technology transformation.

Over the past 12 months, Cognizant has served as a key strategic partner, acting as an extension of Flagstar's in-house Enterprise Technology & Operations (ETOS) team to advance the bank's multi-year technology transformation, named "Simple, Sophisticated" or "S2." The S2 initiative will create a modern technology platform to drive innovation, enhance client experiences, support employees, and leverage data insights while carefully managing risks. This partnership has advanced the bank's technology strategy and meaningfully enhanced client and employee interactions with the Bank.

"Our partnership with Cognizant has been instrumental in advancing Flagstar's S2 transformation strategy, helping us move closer to becoming a top-performing, relationship focused, regional bank," said Chris Higgins, Chief Information and Operations Officer at Flagstar. "Having the right technology foundation in place is a critical part of that success. As we continue our transformation, working with the right partners is essential—and Cognizant has proven to be the right partner, acting as a true extension of our strategy, team, and culture."

Through this partnership, Cognizant has become an integral part of Flagstar's technology and operation ecosystem, delivering services and transformation projects across the bank's businesses, including Commercial & Industrial (C&I) Banking, Commercial Real Estate (CRE), Consumer Banking, Private Banking & Wealth Management, Mortgage Banking, and Risk & Compliance. The establishment of two co-branded development centers in Hyderabad, India, and Manila, Philippines, underscores the companies' commitment to building a seamless environment that mirrors Flagstar's own standards and culture.

Additionally, Cognizant's expertise has helped streamline and standardize Flagstar's tools and processes, improving efficiency and reducing costs. These efforts have translated into higher customer satisfaction scores, internally and externally, demonstrating the positive impact of the partnership on Flagstar's stakeholders.

"This partnership is a testament to what can be achieved when two organizations are united by a shared vision for innovation and excellence," said Nageswar Cherukupalli, Senior Vice President and Business Unit Head of Banking, Capital Markets, Insurance and Strategic Initiatives, of Cognizant. "We look forward to deepening our collaboration with Flagstar, especially as we embark on the next phase of our journey together in AI and advanced technology."

Looking ahead, Flagstar and Cognizant remain focused on innovation, with plans to explore an AI Center of Excellence in India. This initiative aims to enable Flagstar to unlock new opportunities in artificial intelligence and position the bank at the forefront of technology-driven banking solutions.

In addition, Flagstar has joined with Cognizant in its social outreach program to bring software education to under-resourced communities in rural areas around Hyderabad.

About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes, and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

About Flagstar Bank, N.A.
Flagstar Bank, N.A., is one of the largest regional banks in the country and is headquartered in Hicksville, New York. At September 30, 2025, Flagstar Financial, Inc., the former holding company for the Bank, on a consolidated basis, had $91.7 billion of assets, $63.2 billion of loans, deposits of $69.2 billion, and total stockholders' equity of $8.1 billion. Flagstar Bank, N.A. operates approximately 340 locations across nine states, with strong footholds in the greater New York/New Jersey metropolitan region and in the upper Midwest, along with a significant presence in the growth markets of Florida and the Southwest.

For more information, contact:
Katrina Cheung
Katrina.Cheung@Cognizant.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cognizant-and-flagstar-bank-na-mark-one-year-partnership-advancing-flagstars-transformation-enhancing-client-experience-and-driving-efficiency-302674135.html

SOURCE Cognizant Technology Solutions Corporation

FAQ

What did Flagstar (FLG) announce about its partnership with Cognizant on January 29, 2026?

They announced completion of the partnership's first year and progress on the S2 transformation program. According to Flagstar, Cognizant acted as an extension of its Enterprise Technology & Operations team, supporting projects across Commercial, Consumer, Mortgage, Risk, and Private Banking.

How has Cognizant (CTSH) supported Flagstar's S2 technology transformation through 2025–2026?

Cognizant provided integrated services and delivered transformation projects across Flagstar's lines of business. According to Cognizant, this included standardizing tools and processes, improving efficiency, and establishing co-branded development centers in Hyderabad and Manila.

What operational changes did Flagstar (FLG) report after one year of partnership with Cognizant?

Flagstar reported streamlined, standardized tools and higher customer satisfaction scores internally and externally. According to Flagstar, those changes improved efficiency and reduced costs while enhancing client and employee interactions across the bank.

What are the plans for AI with Flagstar (FLG) and Cognizant following their one-year collaboration?

They plan to explore an AI Center of Excellence in India to expand AI capabilities. According to Cognizant, the initiative aims to enable Flagstar to unlock AI opportunities and advance technology-driven banking solutions.

Where did Flagstar and Cognizant establish development centers as part of their partnership?

They established two co-branded development centers in Hyderabad, India, and Manila, Philippines. According to the companies, the centers mirror Flagstar's standards and culture to support ongoing technology and operations work.