Fiserv (FI) Wolfe FinTech Forum summary

Strategic review and reset

• Completed a comprehensive review of operations, technology, business mix, risk management, and talent, leading to a reset of growth expectations and a renewed focus on long-term, client-driven revenues.

• Identified and are addressing competitive and customer service gaps, with capital and resources allocated to fill these areas.

• Five-pillar action plan centers on client-first mindset, innovation, efficiency, capital allocation, and building out the Clover platform.

• Divesting non-core assets that do not fit the franchise or attract capital, totaling a few hundred million in revenue.

• Emphasized maintaining a strong balance sheet and investment grade rating, with clear metrics to be highlighted at the upcoming Investor Day.

Financial outlook and guidance

• Guidance for 2024 is 1%-3% revenue growth, with the lower end reflecting easier comps and the upper end dependent on successful execution of new initiatives.

• Margin expectations are for 31%-32% in the first half, rising to 35%-36% in the second half, averaging 34% for the year.

• Incremental OpEx investments of $675 million are largely complete, with normalization expected in the back half of the year and no further major waves anticipated.

• Clover volume is guided at 10%-15% growth, with the upper end contingent on converting non-Clover volumes.

• No major surprises or changes in trends since Q4; business volumes remain healthy.

Business model, synergies, and innovation

• Retaining both merchant and financial businesses due to significant realized and potential synergies, especially in distribution, data, and embedded finance.

• Embedded finance seen as a major growth opportunity, with unique assets to execute in a $100-$200 billion TAM.

• Ongoing investments in innovation include stablecoin platforms, Vision Next card platform, and the StoneCastle acquisition for cash optimization.

• International expansion is progressing, with notable partnerships in Canada, Brazil, Japan, and Europe.

• AI and new technology are being leveraged to modernize core systems and improve efficiency, with a focus on safe, auditable, and regulatory-compliant solutions.