Fiserv CEO Takis Georgakopoulos addressed analysts this week to update them on his strategy for restructuring the payments processor while supporting continuity in operations.
In one of the two virtual meetings with analysts, Georgakopoulos said Fiserv is still considering selling one of its debit networks, according to analysts at the financial firm Cantor. The CEO didn’t specify which network, Star or Accel, but the analysts told clients Tuesday in a note that they suspected the company would keep Star and shed Accel.
“While the company reiterated the importance of having a debit network and would look to retain the STAR network (in our opinion), [it sees] an opportunity to consolidate clients on one network, and would thus look to either wind down Accel (we believe), retaining the cost benefits, or sell it to bank customers who may see more value in owning their own debit network,” the Cantor note said regarding the Tuesday meeting.
The Fiserv executives met with analyst groups in two separate meetings, one on Tuesday and another on Wednesday, according to David Koning, an analyst at the financial firm Robert W. Baird who also attended one of the meetings. There weren’t any public webcasts or regulatory filings in connection with the meetings.
Georgakopoulos also aims to streamline Fiserv’s business where possible. For instance, he aims to reduce the company’s reliance on 14 payments gateways and instead working with one “modernized solution,” wrote the Cantor analysts, including Ramsey El-Assal. Standalone services, like paper-based businesses, where the market isn’t growing, may also be ripe for changes, and that may be true for other business areas that lag the competition, the note said.
The CEO stressed his interest in following the corporate strategy laid out by his predecessor Mike Lyons during an investor day event in May. Georgakopoulos, who joined the company from JPMorgan Chase in 2024, was promoted to CEO in June, with Lyons’ departure.
Since before Georgakopoulos arrived, Milwaukee-based Fiserv has struggled to deliver on growth prospects, especially for its point-of-sale system Clover. It has also faced increased competition generally from a rising pack of fintech processors, such as the Dutch player Adyen and the restaurant specialist Toast. All of the challenges have sent the company’s stock price down about 60% over the past year.
The new CEO is also intent on maintaining continuity by keeping the existing management team for the company’s two main segments, financial services and merchants services.
Georgakopoulos expressed confidence in the current management team during the meeting. He “does not plan on making dramatic changes, noting in particular that the financial services co-Heads, Srini Krish and Andrew Gelb, are “seasoned operators,” the Cantor note said.
Also joining the CEO for at least some of the meetings were Chief Growth Officer Rick Singh and Fiserv’s head of investor relations, Walter Pritchard, according to a Wednesday note from analysts with Baird.
The Baird analysts, including Koning and Robert Bamberger, noted that Georgapoloulos might want to add some talent from community banks and credit unions to Fiserv’s financial services team. That segment of the business has experienced some client losses.
“Financial services core client attrition will likely remain elevated since dissatisfied customers from previous years take a while to actually attrite (given long-term contracts), but decisions to leave seem to be reduced,” the Baird analysts said in their note.
Still, Fiserv’s executives said there haven’t been any client losses as a result of the CEO switch, according to the Cantor analysts. “The good news is that decisions to leave have slowed,” Georgakopoulos told analysts, Koning said by email.
As for potential acquisitions, Fiserv is leaning away from that possibility. “They will prioritize partnerships, as this helps with speed to market,” the Baird analysts said.
