Fiserv, FIS Face Pressure To Shed Businesses As Fintech Competition Intensifies
By CU Today Staff —
MILWAUKEE—Two of the largest providers of technology to banks and credit unions are weighing additional asset sales as investor pressure, slowing growth and competition from fintechs push Fiserv and FIS to rethink sprawling portfolios built through years of acquisitions.
American Banker reported Monday that Fiserv is considering selling its debit-routing operations while FIS is evaluating strategic alternatives for selected products in its Capital Markets business.
At Fiserv, activist investor Jana Partners is pressing the company to go further than individual asset sales and conduct a comprehensive review of its entire portfolio. Reuters reported Jana, which has held a stake in Fiserv since late 2025, believes divestitures could unlock value and help restore investor confidence after the company's shares lost more than half their value over the past year. Fiserv has reportedly explored selling its Star debit-routing network, but Jana argues a broader review could identify additional businesses worth more separately than within Fiserv.
FIS, meanwhile, has confirmed it is examining strategic alternatives for selected Capital Markets products following weaker performance in the unit. Payments Dive reported CEO Stephanie Ferris disclosed the review after Capital Markets sales came under pressure, while American Banker reported Ferris said expected improvements in lending activity and backlog conversion failed to materialize.
FIS’s Aug. 4 earnings release says Q2 consolidated revenue was approximately $3.4 billion, up 29% on a GAAP basis. Banking Solutions revenue was $2.5 billion, up 44% on both a GAAP and adjusted basis. The company also lowered its full-year revenue and profit forecasts last week amid economic uncertainty, Reuters reported.
The potential divestitures represent another turn in years of dealmaking by both companies as established banking-technology providers contend with faster-moving competitors.
Originally reported by CU Today.