Profile: Fiserv Inc (FISV.O)

Fiserv, Inc. (Fiserv), incorporated in 1984, is a global provider of financial services technology. The Company serves approximately 16,000 clients globally, including banks, thrifts, credit unions, investment management firms, leasing and finance companies, retailers, merchants and government agencies. It provides account processing systems, electronic payments processing products and services, such as electronic bill payment and presentment, card-based transaction processing and network services, automated clearing house (ACH) transaction processing, account-to-account transfer products and person-to-person payments; Internet and mobile banking systems, and related services, including document and payment card production and distribution, check processing and imaging, source capture systems, and lending and risk management products and services. It also owns a 49% interest in StoneRiver Group, L.P. (StoneRiver), which is consisted of its former insurance businesses. In February 2011, the Company acquired Mobile Commerce Ltd. In January 2013, the Company acquired Open Solutions Inc.

Payments

The Company’s electronic banking business is consisted of electronic bill payment and presentment services, biller services, digital channel services, and other electronic payments services, such as person-to-person payments and account-to-account transfers. Its principal electronic bill payment and presentment product, CheckFree RXP, allows its clients’ customers to manage household bills through an easy-to-use, online tool; to view relevant billing and payment information; to pay and manage all of their bills in one place, and to make next-day payments to the companies with which they do business.

The Company’s biller business provides expedited bill payment processing and electronic bill distribution services to companies. Consumers access its electronic billing and payment systems by accessing a financial institution’s or a biller’s Webpage, through www.mycheckfree.com or by using an application on a mobile device. In addition, consumers can make bill payments, including emergency or expedited payments, through the Internet or phone or at its nationwide walk-in bill payment locations. Its electronic biller services business also offers a host of club management and electronic financial transaction services within the health and fitness industry.

The Company’s online consumer and business banking products for financial institutions are Corillian Online and Corillian Business Online, platforms upon, which it has built a range of software applications to support multiple lines of banking businesses. This structure enables its clients to deploy new services by adding and integrating applications, such as electronic bill payment and online banking solutions, to any Internet connected point-of-presence. Its Mobiliti product provides a range of mobile banking and payments services, including balance inquiry, transaction history, bill payment, person-to-person payments and transfers through a mobile device to its clients and their customers. M-Com is an international mobile banking and payments provider.

The Company’s ZashPay is a person-to-person payments service, which enables the secure, electronic movement of money to and from United States-based bank accounts, within one to three business days. Using its existing bill payment network, a payment is originated directly from the sender’s bank account and is transmitted directly into the recipient’s bank account. ZashPay can be accessed through a Fiserv Website, www.zashpay.com, or through the Websites of participating financial institutions. CashEdge, Inc. (CashEdge) is a provider of consumer and business payments solutions, such as account-to-account transfer, account opening and funding, data aggregation, small business invoicing and payments and person-to-person payments.

The Company’s card services business is engaged in electronic funds transfer and provides a total payments solution through a range of products and services. It offers automated teller machine (ATM) and point of sale personal identification number (PIN)-based debit transaction processing, signature debit processing, ATM driving and monitoring, private label and bankcard credit card processing, electronic benefits transfer switching, prepaid program development and management, and national and regional network access. It owns the ACCEL/Exchange network and operates approximately 19,000 ATMs. As of December 31, 2011, its card services business had more than 4,300 clients, including banks and credit unions of all asset sizes, resellers (through both business alliance and remarketer agreements), finance companies, independent sales organizations and merchant acquirers across the United States. During the year ended December 2011, it processed more than 10 billion debit and credit transactions.

The Company’s output solutions business provides clients with electronic document management through its electronic document delivery products and services; card manufacturing, personalization and mailing; statement production and mailing; design and fulfillment of direct mail solutions; forms distribution; laser printing and mailing, and office supplies. It provides products and services to over 325 financial service organizations, including broker dealers, global asset managers, investment advisors, banks and insurance companies, delivering financial planning, portfolio management, models management, performance measurement, reporting services, billing, and post-trade processing automation. Its fee-based investment management clients are sponsors or managers in the managed accounts and wealth management market, which offer a range of managed account programs to investors. It also supports global institutional asset managers and asset servicers, which manage investments of institutions. The Company’s risk management business provides financial crime, compliance, anti-money laundering, fraud prevention, market surveillance and employee fraud detection products and services. Its offerings include Fraud Risk Manager, Fraud Detection System, FraudLink and FraudGuard.

The Company competes with Fidelity National Information Services, Inc. (FIS), Jack Henry and Associates, Inc. (Jack Henry), Online Resources Corporation, Western Union, First Data Corporation, MasterCard Incorporated and Visa, Inc.

Financial

The products and services, which the Company provides are sold as an integrated system to its clients and include account, item and lending processing, as well as solutions from its Payments segment, such as electronic bill payment and presentment, Internet and mobile banking, debit processing and network services and person-to-person payments. The Company provides integrated account servicing and management capabilities to its bank, thrift and credit union clients, as well as complementary value-added products and services. Account processing solutions are the systems, which enable a bank to operate and include systems, which process customer deposit and loan accounts, an institution’s general ledgers, central information files and other financial information. These solutions also include security, report generation and other features, as well as to comply with applicable regulations. Account processing solutions are offered through online data transmission connections to its account processing centers called data centers or service bureaus, as stand-alone licensed software for installation on client-owned computer systems, or through a combination of both.

The Company supports a range of terminals and other client-owned peripheral devices manufactured by a range of vendors. The principal account processing solutions used by its bank and thrift clients are Premier, Precision, Cleartouch and Signature. The Signature system is available both domestically and internationally. The principal account processing solutions used by its credit union clients are Acumen, Advantage, Charlotte, CubicsPlus, CUSA, DataSafe, Galaxy, OnCU, Portico, Reliance, Spectrum and XP2.

The Company’s item processing business offers products and services to financial institutions and intermediaries. Its image-enabled solutions are offered as in-house or service bureau offerings to thousands of account processing and non-account processing clients. Its remote deposit capture solutions are branded as Source Capture Solutions and are offered on a common Web platform. They include ATM Source Capture, Branch Source Capture, Consumer Source Capture, Merchant Source Capture, Mobile Source Capture, Regional Source Capture, Remittance Coupon Source Capture and Teller Source Capture. Through the Fiserv Clearing Network, it provides complete check clearing and image exchange services. Other solutions include image archive with online retrieval, in-clearings, exceptions and returns, statements and fraud detection. It also provides consulting services, business operations services and related software products, which facilitate the transformation of its clients’ payments environments from paper-based to electronic.

The Company’s lending business offers products and services to financial institutions and intermediaries, including loan origination systems, consumer and commercial lease and loan servicing products, and default mitigation and business process outsourcing services; a mortgage loan servicing platform and loan origination and tracking systems, and portfolio analytical services.

The Company competes with FIS, Jack Henry and Open Solutions, Inc.