Lisa Ellis : Hi, good morning. Thanks for taking my questions and good stuff here. Frank, you highlighted Fiserv’s ongoing readiness efforts related to the rollout of FedNow coming in a few months. Can you just elaborate a bit on how you anticipate and then I guess maybe how quickly you expect FedNow to begin impacting Fiserv’s business and where we’ll see that benefit? Thank you.
Frank Bisignano : Yes. I mean, we’ve always had a philosophy that we are a commerce enabler. So as new payment types and changes to payment types, just how what we did with Zelle, and you go back to places like Apple Pay. It’s just a philosophical belief that we are here to help our clients grow their business. We are here on purpose-driven method to help them run their business better. And when new initiatives like FedNow come along, and we have thousands of banks and credit unions across the country that are looking for different payment methodologies to allow them to deliver for their clients who are going to enable it. So, we partner obviously with the Fed on this. I see it as another payment type. I think it’s good for our largest institutions and our smallest.
And I suspect it will get volume. It’s — for us, it’s a very good choice to enable payments just like Zelle was a very good choice to enable payments. So, we’re pretty excited. Adoption will drive all. It will be a single integrated interface to allow our clients to be able to come in seamlessly through our network and I look forward to reporting on it when we talk next quarter.
Lisa Ellis : Terrific. Thank you. And then maybe just for my follow-up, I’ll ask about investment areas because you did call out how Finxact, Ondot and some of your other recent acquisitions are having a very noticeable positive impact on Fiserv. So just looking forward, what are some of your priority investment areas like sort of the hot areas right now, either for organic or inorganic investment? Thank you.
Frank Bisignano : Well, I would say you have to start with a series of items. Carat, Clover, we’re leaning heavily on both of those. I think we’ve grown them organically very well. But we’ve also added BentoBox, MerchantOne, Next Table. So, you’ll see us do both. I think we have a very, very strong track record. Starting with Clover, moving to Ondot, moving to BentoBox, Finxact of bringing founders in and helping them grow their business at a different level. I think you can see a vertical focus to see us with driving value-added services. So, I would say that’s a large part of the merchant story, and that will happen in the U.S. and within our regions also. I think when you think about Finxact, you think about what I feel is the best next-generation platform out there.
And both Finxact and DNA are very, very strong assets. We do have great assets like Signature also, but when you think about the buildout, you should think about us taking Finxact and DNA to the next level, the best cloud platform in the industry between the two by far. And when you see the investment we’re making to bring Walmart up, and they’re up and running in the early stages, that will industrialize us in that platform beyond anyone’s expectations when we acquired it. If you look in our payment’s areas, we will continue to bring in the issuing area a lot of digital innovation. We’re cloud enabling those platforms to take them to the next level. I think you’ve seen that we’ve been hugely successful in the issuing area even as late as Desjardins and Target coming on.
So, we’ll continue to invest in those platforms growing out and bring more value-added services there, more digital capability there also. I think along with that, what we’re doing with things like SpendLabs and — is we’re opening up a whole new SMB opportunity within our portfolio that we think will transfer sell our whole organization. And we believe deeply in SMB and the combo of SpendLabs and Clover and other assets that we brought on board will really allow us to even have more wallet from our SMB population. And then Ondot, you saw us take something that was a card control card access capability and bringing it into the mobile banking platforms of over 1,000 institutions. So, I think you also look at the speed in which we ramp these products, the way we integrate them into the company.
We think we have a pretty strong expertise in that and you can count on that continuing driving future growth for the company.
Operator: Next, we’ll go to the line of Timothy Chiodo from Credit Suisse. Please go ahead.
Timothy Chiodo : Great. Thank you for taking the question. I want to dig in a little bit more on the recent Star and Accel wins. So, you mentioned numerous of those, the Uber, the large merchant acquirer last quarter and more in the pipeline. I wanted to just recap the value proposition. When you’re speaking with these acquirers and merchants, I’m assuming part of it is lower interchange, network fees. There might be a bundled sales approach. There might be an authorization angle. If you could recap those and maybe add to the list? And then lastly, if at all possible, if you could just comment directionally in terms of market share goals. Is the goal for U.S. online debit for Star and Accel to be in a similar position to your share for the in-store debit market in the U.S?
Frank Bisignano : So first, I think you did a pretty good job, so thank you, in describing the opportunity. And I would say, yes, we’re in the client’s office every day. Large institutions, and we’re talking to them about our full capability. I’d say we get a lot of imbalance from large institutions because if you’re the third debit network, I think it’s a very strong position. And the combo of Star and Accel is very, very powerful. It’s good for our merchants, it’s good for our issuers. And I don’t want to lose that, it’s a two-sided benefit. That benefit is us having invested in these products for a long time and consistently felt that it was a value-add to our clients, both large and small. It is about technical capability, not just about a lower price.
Of course, every one of our business as the industry would call them merchants, I think of them as businesses. We always working on how to get a better client experience and how to lower the cost of acceptance. We’re here to provide them the enablement they need. When you think about market share, you hear us rattle off those number ones and then we rattle off at number three in debit. I think that’s a pretty privileged position. Those are formidable and fabulous institutions, 1 and 2. So our job is to give our clients choice, and if we give them choice, we do come with an all-inclusive capable set of assets that we deliver to clients. It could be cost debit routing. It’s the capabilities of Reg II. It’s also the pay by bank capability that you heard about.
Over time, it will potentially be things like FedNow and Zelle capability. Our job is to have the bundle, have any capability, help both issuers and merchants be able to get a better outcome. And I think we’re uniquely positioned out of everybody in the industry. It’s really the power of having a merchant business and issuing business, a banking business, and we’re a horizontal company that allows us to partner cross-sell businesses to give the best solution of the client. And that’s why sometimes when we look at it, we look at it how did we deliver on the top in total? And how did we deliver in margin in total and making sure we’re doing the best job for our clients and our shareholders.
Timothy Chiodo: Great. Thank you, Frank.
Operator: Our next question comes from Dave Togut from Evercore ISI. Please go ahead.
David Togut : Thank you. Good morning. Within the Fintech segment, the 12 core wins are certainly good to see. Can you talk about decision cycles, sales cycles, and how they might be evolving post the regional bank crisis from early March?
Frank Bisignano : Yes. I mean, first of all, I don’t — I didn’t see a regional bank crisis. I saw tremendous turmoil. I think we have banks of all sizes from the largest in the world to 13-person credit unions, and there was not across — and this is me talking to you about my interaction with my client base. In their office during this period of time, while I was on the road, whether it was Debica, Kansas, we saw at Missouri — Springfield, Missouri, Raleigh, North Carolina, all across, we have very, very sound banks across this country that really performed very, very well and have always run their asset and liability structure in a manner that I’ve seen through my career. So, a little bit — I’m sorry for that kick off, but I wouldn’t want to need it as a banking crisis.
There was turmoil, I see demand very high. Every one of those were creating opportunity that I rattled off during that week. I still — I’ve been consistent on demand is high, opportunity to sell all products is very high. I mean, if you step back and look at our 2 FI-facing segments, you look at it over the past three quarters, third quarter at 7.7% growth, fourth quarter ’22 at 9.2% growth and first quarter of ’23 at 9.4% growth. Those feel good to us. Our pipeline is strong, both in traditional products and then in our new opportunities like Finxact and Ondot and others. So, I feel very, very good about. Yes, there was maybe, as I called it, a little coastal problem. But throughout the country, it’s been very, very strong. And our banks is that we were all over how to help them through it and deliver what they needed during that turmoil.
And I feel good about how the org performed.
