Fiserv retains key bank customers amid bank mergers in 2021

Fiserv Inc. has retained bank customers New York Community Bancorp Inc. after the bank announced its $2.6 billion merger with Flagstar Bancorp Inc., as well as First Interstate BancSystem Inc. after its $2.0 billion merger with Great Western Bancorp Inc., Fiserv President and CEO Frank Bisignano said during the fourth-quarter earnings call Feb. 8.

"Clients continue to choose Fiserv as their strategic technology partner to power combined entities into the future," Bisignano said.

The executive highlighted higher growth driven by banks with $1 billion to $50 billion in assets for its banking technology solutions, including new customers Valley Bank Inc. and Dollar Bank Federal Savings Bank, and cross-selling deals to existing customers such as Great Southern Bancorp Inc.

Fiserv secured 434 new and existing sales in 2021 for Abiliti, its cloud-based online and mobile banking platform, according to an investor presentation. Fiserv announced Feb. 7 plans to acquire Finxact Inc. for $650 million, a cloud-native banking solutions provider. It will enable banks to quickly deploy modular services in deposits, loans and cards, and help them to launch features in digital banking, banking-as-a-service and embedded finance, Bisignano said.

Fiserv invested approximately $850 million in M&A in 2021 and completed seven transactions, including the acquisitions of BentoBox CMS Inc. and Netpay Solutions Group Ltd., said CFO Robert Hau. With significant free cash flow, the company continues to have the ability to deploy capital in different ways including acquisitions and share buybacks, Hau said. Fiserv generated $3.53 billion in free cash flow in 2021.

In full year 2021, Fiserv grew adjusted revenue by 11% to $15.39 billion. Adjusted earnings per share was up 26% to $5.58. The company completed the targeted cost synergies of $1.2 billion from its merger with First Data, meeting the target over two years ahead of schedule.