Fiserv Inc (FISV) has been around the financial services and financial tech sector since the mid-1980s.
In that time, it has seen the rise of ATMs, debit cards and online banking. And that doesn’t even include the newest growth area, mobile banking and financial services.
Fiserv has always been on the forefront of innovation and that has served it well during these tumultuous decades. Basically, FISV works with banks, financial institutions and businesses to allow them to process transactions safely and efficiently.
Whether using a computer or a smartphone, its applications help these institutions serve their customers in a way that is most effective for each individual or organization.
Its leadership in the area is obscured by the foggy initial days of the potential of the internet. For example, in 1997, before Alphabet Inc‘s (GOOG, GOOGL) Google and Facebook Inc (FB) were even founded, Fiserv was already allowing its financial clients to use e-bills to send to customers.
Since those days, FISV has expanded strategically in the electronic billings and payments space to be one of the top companies in the world. It now has 13,000 clients worldwide, with over 700 solutions in 148 offices around the globe.
This Is Just the Start for Fiserv (FISV)
The new growth that will be part of Fiserv’s next wave is mobile payment solutions. As millennials begin to move into the workforce they are the first generation truly raised on mobile communication and transactions.
Deposit a check by snapping a picture of it and sending it to your bank. Buy an item off eBay Inc‘s (EBAY) webpage and pay for it through your bank or PayPal Holdings Inc (PYPL) while sitting on the beach. Allow your bank to send checks out for you through automated systems. These are all current technologies that are already used with increasing frequency by individuals as well as institutions.
And the proof that this is more than just a fad is in the numbers. FISV reported for Q1 in early May and numbers prove the claims. According to the earnings call transcript, revenue was up 4% for the quarter. In general, this was very good number because spending was off significantly in the broader market during that time.
Adjusted earnings per share were up 19% — again, this is a powerful number when many companies were lucky to have even positive earnings versus the same quarter a year ago. Operating income was up 8%.
Its Mobiliti ASP subscribers jumped 40% from the prior year, and 9% sequentially. This solution helps community banks and savings and loans access mobile banking platforms, transactions and services without having the costs and human resource commitments that larger national banks can more easily absorb.
In the last 12 months, Fiserv stock is up more than 30%, but its growth track is far from ending. As more banks of every size look to save money by automating their services, and FISV can provide them with more solutions to do that, the bigger the general market for financial technology will be.
And as the sector expands, FISV will be one of the biggest beneficiaries.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.