Former senior executive at Fiserv Inc
- Fiserv’s (NASDAQ: FISV) operating environment for core banking products with key considerations for ongoing performance
- Open and cloud banking adoption in North America
- Market share outlook and assumptions for legacy players such as Fiserv and FIS (NYSE: FIS) vs newer fintech players such as Marqeta (NASDAQ: MQ) and Galileo
- Fiserv’s core digital banking offering, Abiliti, and potential to build additional revenue streams
- Fiserv’s potential M&A strategy and broader industry consolidation
What are your thoughts on Fiserv’s operating environment, highlighting 2-3 key trends or drivers that you feel we should be monitoring?
How are consumer preferences changing? How do those changes affect Fiserv’s positioning and strategy?
Where are we with open banking adoption? What could adoption look like over the next 2-3 years given that some of the coronavirus tailwinds are really behind us at this point?
Do you expect the same kind of slow growth going forwards for open banking in North America? Can open banking adoption there truly be successful by market forces alone, or should we expect similar government mandates to the European market?
How should we think about the relative positioning of legacy players such as Fiserv, Jack Henry and FIS in open banking and cloud banking services?
Where could Fiserv be better- or worse-positioned to continue to acquire customers for open banking and cloud banking services, comparing smaller financial institutions to larger banks?
How should we think about secular tailwinds from smaller vs larger financial institutions? There’s been very broad-based consolidation among community and regional banks, and I’m thinking about larger institutions’ digital branch transformation strategies too. To what extent are these things adoption tailwinds?
A common criticism of Fiserv and other legacy players is that their old-school technology makes it more difficult for them to compete long term with newer fintechs. To what extent does this tech debt remove competitiveness? Have you found that to be a valid criticism? What are the building blocks to addressing it?
Is there any way for Fiserv to build additional revenue streams on top of the banking segment? I know the Abiliti platform, which you were directly involved with, includes data analytics and insights, and there was the recent announcement of data-sharing with Equifax and building different revenue streams there. How could those things bolster Fiserv’s position?
What kind of adoption could Fiserv see from the existing customer base for additional services, ie data analytics and insights? How does this translate into a revenue opportunity?
It seems Fiserv’s strategy will focus on engagement and driving more value out of existing accounts. How should we think about new account acquisition from here? What are your expectations around market share gains or losses from legacy core banking service providers vs the newer, more modern platforms that you spoke about in the beginning?
Are there any clear winners or losers among the newer fintechs? How do you view the value or competitiveness of an offering such as Galileo’s given it exists in a SoFi ecosystem with a bank charter, as well as it having the connection already to a consumer relationship?
I guess the idea of fragmentation implies consolidation going forwards. What are your M&A expectations for Fiserv and its peers?
What do you make of payroll providers disintermediating the banks over time as they partner with fintechs to offer instant payments and on-demand pay, which I think is known more as earned wage access solutions?
What are your best-, base- and worst-case scenarios for Fiserv’s performance over the next three years?
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