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.
Positive
- None.
Negative
- None.
News Market Reaction
On the day this news was published, FLG gained 4.64%, reflecting a moderate positive market reaction. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $250M to the company's valuation, bringing the market cap to $5.63B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
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
| 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. |
Recent news has often produced small moves, with some positive strategic updates coinciding with negative or muted price reactions.
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 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 technical
commercial real estate (cre) financial
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
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
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
In addition, Flagstar has joined with Cognizant in its social outreach program to bring software education to under-resourced communities in rural areas around
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
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?
How has Cognizant (CTSH) supported Flagstar's S2 technology transformation through 2025–2026?
What operational changes did Flagstar (FLG) report after one year of partnership with Cognizant?
What are the plans for AI with Flagstar (FLG) and Cognizant following their one-year collaboration?
Where did Flagstar and Cognizant establish development centers as part of their partnership?
