Fiserv, Inc. CEO Michael Lyons Discusses Growth Strategies and Market Opportunities at Baird Global Consumer, Technology & Services Conference 2025

Key Takeaways

TL;DR: Fiserv, under new CEO Mike Lyons, outlined robust growth drivers anchored around modernizing FI core systems, expanding its Clover platform, and advancing in embedded finance and stablecoin infrastructure—with a strong client-first and operational excellence focus to sustain recurring rev. growth amid tech shifts in the financial svc sector.

• Leadership & Strategic Vision
  • New CEO Mike Lyons, transitioning from PNC and Bank of America, emphasized leveraging first-hand banking experience to enhance Fiserv's offerings across FI and merchant sectors.
  • Stress on a "client-first mindset": enhance value by understanding and integrating diverse client needs into scalable, tech-driven solutions.
  • Quote: "We have all these resources within Fiserv across both the Merchant side and any type of payment side on the FI side, and then deliver solutions into companies that ultimately help them run their businesses better."
• Financial Institutions (FI) & Core Modernization
  • Scale & Platform: Fiserv serves 10,000 FIs globally (w/ 5,000 U.S. FIs), using a platform approach that integrates legacy core banking and modernized solutions such as Finxact—a cloud-based, API-driven core system.
  • Growth Initiatives: Significant emphasis on modernizing U.S. core systems (e.g., consolidating 16 cores to 5) to boost ARPU through targeted growth in embedded finance and API-first banking systems.
  • Competitive Edge: Positioned uniquely w/ a blend of merchant and FI technologies, empowering banks to address increasing tech spending (e.g., JPMorgan’s $13B tech spend as a market benchmark).
• Embedded Finance & Value-Added Solutions
  • Drivers: Strong momentum in embedded finance initiatives, integrating offerings like Finxact, card issuing, Payfare acquisition, and digital platforms (e.g., XD) to create a differentiated suite.
  • Market Demand: Emphasis on the rising demand from merchants and banks for integrated financial solutions, enabling responses to shifts where banks become payment companies and vice versa.
  • Flexibility: Innovative solutions allow non-traditional banking approaches such as converting merchants into mini-banks, as highlighted by partnerships like DoorDash and Walmart's One Finance.
• Clover Platform & Merchant Growth
  • Growth Trajectory: Clover, a key growth asset, has showcased low DD volume growth (excl. gateway conversion), setting the stage for high rev. growth through significant value-added adoption.
• Horizontal & Vertical Expansion:
  • Horizontal expansion includes partnerships w/ payroll (ADP) and cash management tools (CashFlow Central), enhancing overall platform stickiness.
  • Vertical targeting w/ tailored solutions for sectors like hospitality, retail, and health care to address industry-specific needs.
• Distribution & International Reach: Expansion strategy outlined through additional facilities (e.g., new Kansas City office) and launching Clover in 5 countries, including promising markets like Brazil.
• Issuing & Digital Business
  • Issuing Strength: Dominant market position w/ 25 of the 50 largest U.S. issuers, 80% private-label market, and growing global exposure in markets such as India and the U.K.
  • Digital Initiatives: Focus on upgrading digital platforms including CashFlow Central and debit networks for real-time transaction visibility, projection of DD growth driven by backlog and pipeline expansion.
• Stablecoin & Crypto Infrastructure
  • Market Opportunity: Recognizing emerging regulatory and tech trends, Fiserv is preparing to support stablecoin wallet and custody solutions, leveraging core platforms (Finxact, Payfare) to meet potential client demands.
  • Client-Driven Implementation: Intends to roll out infrastructure that accommodates both FI and merchants, ensuring agile response should regulatory changes mandate timely tech deployment.
• Synergies & M&A Impact
  • First Data Merger Legacy: Reflects on the merger’s effectiveness—synergies still being realized w/ ongoing potential through back book conversions into the Clover platform, and addressing holistic client needs across segmented product lines.
  • Integration Strategy: Emphasis on seamless synergy between FI and merchant segments as integration deepens, reinforcing recurring rev. and fortifying competitive positioning.
• Market Dynamics & Outlook
  • Stable Backdrop: Financial growth outlook solid, w/ FI growth consistently ranging from 6% to 8% and merchant organic growth expected to shift from the current 8% in Q1 to a 12%-15% full-year pace, partly supported by regional market trends (e.g., Argentina, Caribbean).
  • Operational Excellence: A continuous drive to enhance operational execution and customer svc across all product lines to sustain the value proposition and elevate rev. per client.

This comprehensive multi-segment strategy reflects Fiserv's ability to navigate the evolving fintech landscape, positioning it for sustained growth in both FI and merchant sectors in the coming years.

Call Q&A

• David Koning: How do you view Fiserv now as CEO compared to when you were at PNC?
  • Michael Lyons: I've seen firsthand the value Fiserv adds to banks and FIs in a tech-dominated world. We have 10,000 FI relationships globally, scaled operating platforms, and 13,000 software engineers. Our solutions help FIs modernize, grow, digitize, and compete.