Fidelity National Information Services, Inc., a financial services technology company, offers a range of solutions in retail and institutional banking, payments, asset and wealth management, and risk and compliance in the United States. The company operates through Integrated Financial Solutions and Global Financial Solutions segments. It also provides financial consulting and outsourcing services. The Integrated Financial Solutions segment offers various solutions, including core processing and ancillary applications; digital solutions, such as Internet, mobile, and e-banking; fraud, risk management, and compliance solutions; electronic funds transfer and network services; card and retail solutions; corporate liquidity; wealth management; item processing and output services; government payments solutions; and e-payment solutions. The Global Financial Solutions segment provides banking and payments solutions, and consulting and transformation services to financial institutions worldwide, which include securities processing and finance, global trading, asset management and insurance, retail banking and payments services, strategic consulting services, public sector and education, global commercial services, and retail check processing. The company offers consulting and technology services under the Capco brand. Fidelity National Information Services, Inc. was founded in 1968 and is headquartered in Jacksonville, Florida.
Business Analysis of FIS
The Financial Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how FIS compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by FIS to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of FIS with an interactive chart.
- Revenue Growth: FIS reported a revenue growth of 40.1% year-on-year during 2016. Payment and Transaction Processing Services Industry grew at 14.6% in the same period
- COGS share of Revenues: As a percentage of revenue, FIS spent 67.5% of its total revenues on COGS. Payment and Transaction Processing Services industry average (COGS share of revenue) in the same period was 50.7%
- R&D share of Revenues: FIS R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, FIS spent 18.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Payment and Transaction Processing Services industry average SG&A spending in the same period was 20.9%
- Inventory share of Revenues: FIS Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, FIS invested 20.1% of its total revenues on Accounts Payable (A/P) Payment and Transaction Processing Services industry average Accounts Payable investment in the same period was 17.4%
- Accounts Receivable share of Revenues: As a percentage of revenue, FIS invested 20.3% of its total revenues on Accounts Receivable (A/R). Payment and Transaction Processing Services industry average Accounts Receivable investment in the same period was 17.6%
- PP&E share of Revenues: As a percentage of revenue, FIS invested 6.8% of its total revenues on Property, Plants, and Equipments (PP&E). Payment and Transaction Processing Services industry average PPE investment in the same period was 8.3%
- Intangibles share of Revenues: As a percentage of revenue, FIS invested 221.3% of its total revenues on Intangibles. Payment and Transaction Processing Services industry average Intangibles investment in the same period was 154.3%
- Net Margins: FIS Net Margins in the year 2016 were 6.1%. Payment and Transaction Processing Services industry average Net Margins in the same period were 6.6%
Sector and Industry Association of FIS
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
FIS is associated with Financials Sector Group, Financial Services Sector, and Payment and Transaction Processing Services Industry.
Financial Services sector is comprised of the following industries: Investment Services; Consumer Finance; Payment and Transaction Processing Services; Financial News, Research and Data. The definitions for each of the industries is as follows:
- Investment Services industry includes investment banking companies, asset management companies, securities brokers and dealers, online brokers, and security/commodity exchanges.
- Consumer Finance industry includes companies providing credit services and mortgage finance services.
- Payment and Transaction Processing Services industry includes companies providing financial news, research, and data services.
- Financial News, Research and Data industry includes companies providing payments and transaction processing services.
Industry Ranking of FIS
With $9.2 billion revenues, FIS ranked number 2 of all the companies in the US Payment and Transaction Processing Services industry. There were a total of 13 public companies in the US Payment and Transaction Processing Services industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Payment and Transaction Processing Services industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.