10-KPeriod: FY2004

FISERV INC Annual Report, Year Ended Dec 31, 2004

Filed February 25, 2005For Securities:FISV

Summary

Fiserv, Inc. (FISV) reported its fiscal year 2004 results in this 10-K filing, highlighting its position as a leading provider of integrated data processing and information management systems to a diverse range of financial services and insurance providers. The company serves over 16,000 clients, including banks, credit unions, insurance companies, and self-insured employers. Fiserv's business strategy emphasizes continuous product development, cost-effectiveness, client acquisition, and strategic acquisitions. Notably, the company has a history of aggressive M&A activity, with numerous acquisitions in 2002, 2003, and 2004 to expand its service offerings and market reach. A significant development during the fiscal year was the agreement to sell its securities clearing businesses, with results reported as discontinued operations. This strategic divestiture is expected to streamline the company's focus. Fiserv also detailed its operational segments: Financial Institution Outsourcing, Systems and Services; Health Plan Management Services; and Investment Support Services. The company emphasizes its commitment to client service and innovation, allocating approximately 6% of its processing and services revenues to product development in 2004.

Key Highlights

  • 1Fiserv serves over 16,000 financial services and insurance providers, offering integrated data processing and information management systems.
  • 2The company's growth strategy is driven by product development, cost efficiency, client acquisition, and a consistent track record of strategic acquisitions.
  • 3In 2004, Fiserv initiated the sale of its securities clearing businesses, which are being reported as discontinued operations, indicating a strategic portfolio adjustment.
  • 4Fiserv's operations are segmented into Financial Institution Outsourcing, Health Plan Management Services, and Investment Support Services, demonstrating diversification.
  • 5Approximately 6% of Fiserv's processing and services revenues were dedicated to product development in 2004, underscoring a commitment to innovation.
  • 6The company operates through a robust network of over 150 data centers, software development centers, and support facilities, primarily in the United States.
  • 7Fiserv reported $7.25 billion in aggregate market value of common equity held by non-affiliates as of June 30, 2004.

Frequently Asked Questions

Fiserv primarily provides integrated data processing and information management systems and services to financial institutions (banks, credit unions, lenders) and insurance companies, as well as offering health plan management services primarily to self-insured employers. Its core strategy revolves around supporting these clients with technology solutions to manage transactions, accounts, and operations.

The most significant strategic move in 2004 was the agreement to sell its securities clearing businesses, which are being accounted for as discontinued operations. This move signals a potential shift in focus and a streamlining of the company's business lines.

Fiserv pursues growth through a combination of developing new products, enhancing existing services, aggressively seeking new clients, and making strategic acquisitions. In 2004, product development represented approximately 6% of the company's processing and services revenues, demonstrating a consistent investment in innovation.

Fiserv's operations are organized into three main segments: 1) Financial Institution Outsourcing, Systems and Services, which is its largest segment serving banks and insurance companies; 2) Health Plan Management Services, providing administrative and related services for health plans; and 3) Investment Support Services, offering administrative, custodial, and processing services for retirement plans and investment advisors.