10-KPeriod: FY2003

FISERV INC Annual Report, Year Ended Dec 31, 2003

Filed February 27, 2004For Securities:FISV

Summary

Fiserv, Inc.'s 2003 Form 10-K details its robust business in providing integrated data processing and information management systems to a wide array of financial services providers, including banks, credit unions, and insurance companies. The company's strategy emphasizes continuous product development, cost-effectiveness, client acquisition, and strategic acquisitions, evidenced by numerous acquisitions in 2003 that expanded its service offerings and market reach. Fiserv operates across three primary segments: financial institution outsourcing, health plan management services, and securities processing and trust services. The company highlights its strong market position, driven by a commitment to client service, economies of scale, and a comprehensive portfolio of solutions. Despite a competitive landscape, Fiserv leverages its independence and focus on the financial services industry as a key differentiator. The report also notes the company's significant employee base and its commitment to ongoing training and technological advancement to maintain its competitive edge. Fiserv's financial health is supported by its consistent growth and strategic investments in product development, positioning it for continued success in the evolving financial technology sector.

Key Highlights

  • 1Fiserv serves over 15,000 financial services providers with integrated data processing and information management systems, including banks, broker-dealers, credit unions, and insurance companies.
  • 2The company executed a vigorous acquisition strategy in 2003, acquiring 12 businesses with combined annual revenues exceeding $610 million, significantly expanding its operations and service capabilities.
  • 3Fiserv operates through three main business segments: financial institution outsourcing, systems and services; health plan management services; and securities processing and trust services.
  • 4A significant portion of Fiserv's business involves providing 'core' processing systems and ancillary services to financial institutions, available as service bureaus or licensed software.
  • 5The company emphasizes its commitment to product development, with approximately 7% of processing and services revenues dedicated to this in 2003, ensuring continuous enhancement of its offerings.
  • 6Fiserv maintains a competitive advantage through its independence, focus on the financial services industry, and economies of scale derived from its broad market presence.
  • 7The company employs approximately 21,700 specialists and stresses ongoing client training and technical support as key elements for client retention and satisfaction.

Frequently Asked Questions

Fiserv's operations are primarily divided into three segments: Financial Institution Outsourcing, Systems and Services; Health Plan Management Services; and Securities Processing and Trust Services.

Fiserv's growth strategy involves continuous product development, improving service cost-effectiveness, actively seeking new clients, and making strategic acquisitions, as demonstrated by its numerous acquisitions in 2003.

Fiserv's competitive advantage stems from its position as an independent, growth-oriented company dedicated to the financial services industry, its economies of scale, its comprehensive product offerings, and its strong emphasis on client service and support.

While Fiserv's data processing subsidiaries are not directly regulated like financial institutions, they are subject to regular examinations by financial regulators. Its securities processing business is overseen by entities like the NYSE and SEC, and its health plan management services are subject to extensive federal and state regulations.