Fiserv, Inc., together with its subsidiaries, provides financial services technology worldwide. The company's Payments and Industry Products segment provides debit and credit card processing and services; electronic bill payment and presentment services; Internet and mobile banking software and services; person-to-person payment services; and other electronic payments software and services. This segment also offers card and print personalization services; investment account processing services for separately managed accounts; and fraud and risk management products and services. Its Financial Institution Services segment provides account processing services, item processing and source capture services, loan origination and servicing products, cash management and consulting services, and other products and services that support various types of financial transactions. This segment also offers a range of services, such as customization, business process outsourcing, education, consulting, and implementation services; and ACH, treasury management, source capture optimization, and enterprise cash and content management solutions, as well as case management and resolution services to the financial services industry. The company also provides document and payment card production and distribution, check processing and imaging, source capture systems, and lending and risk management products and services. Fiserv, Inc. serves banks, thrifts, credit unions, investment management firms, leasing and finance companies, retailers, merchants, mutual savings banks, and building societies. The company was founded in 1984 and is headquartered in Brookfield, Wisconsin.
Business Analysis of Fiserv
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 Fiserv 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 Fiserv 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 Fiserv with an interactive chart.
- Revenue Growth: Fiserv reported a revenue growth of 4.8% 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, Fiserv spent 53.8% 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: Fiserv 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, Fiserv spent 20.0% 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: Fiserv 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, Fiserv invested 22.6% 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, Fiserv invested 16.4% 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, Fiserv invested 7.4% 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, Fiserv invested 130.9% of its total revenues on Intangibles. Payment and Transaction Processing Services industry average Intangibles investment in the same period was 154.3%
- Net Margins: Fiserv Net Margins in the year 2016 were 16.9%. Payment and Transaction Processing Services industry average Net Margins in the same period were 6.6%
Sector and Industry Association of Fiserv
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.
Fiserv 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 Fiserv
With $5.5 billion revenues, Fiserv ranked number 3 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.