Will the consolidation of banks that is occurring now have a major impact on Fiserv financials. Is this being accounted for
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There has been very few bank acquistions in the past year due to economic conditions. However Fiserv noted a decline in revenue in financial technology. Clients are leaving. This will only accelerate. Very few new clients selecting Fiserv. Leaky bucket.
"Similarly, Fiserv reported revenue from its financial technology division declined to $784 million for the second quarter, down from $803 million for the period last year, though its profit margin increased."
https://www.paymentsdive.com/news/fis-fiserv-revenue-banking-payments-software/689702/
Bank consolidation is very bad for us (consumers) and frightening to consider if/when the US goes to central banking.
As far as frank and frankserv, I’m sure that’s why he wants a transition to payments.
Very thoughtful comments and helpful, thank you
Removing banking and focusing on payments is Fiserv's goal.
That is a pretty complex question. It depends on the licensing model, some cores charge per account number, in that case mergers don't really impact too hard. The big problems come when the banks have cores from different providers. One is going to win and one is going to lose. I would bet Fiserv is losing a lot of those right now. However sometimes in those cases there is large early term fees that Fiserv loves.