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How Are FIS’s Business Strategies Driving Growth?

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Jun. 3 2016, Updated 12:07 p.m. ET

Core business strategies

In the past few years, Fidelity National Information Services (FIS) has grown steadily and expanded across markets, geographies, and service offerings. The company aims to “deliver superior solutions and services to clients, which will result in sustained revenue and earnings growth for shareholders.” FIS’s strategies leading the company’s growth include the following:

  • client relationships
  • build, buy, or partner to solutions to cross sell
  • supporting clients through transformation
  • continuous improvement to drive margin expansion
  • building global diversification

FIS is focused on its growth in order to compete with rivals like Fiserv (FISV) and Jack Henry & Associates (JKHY) and continue to gain market share.

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Fueling growth

FIS plans to build stronger client relationships through multidimensional offerings. Complementary solutions acquired from SunGard should meanwhile help expand client relationships.

The company has also been investing heavily in internal product development initiatives to add to existing service offerings that can be used to cross-sell to existing clients. FIS also expands value propositions to clients through innovation, and the changing dynamics of the market has transformed the way in which clients operate.

At the same time, FIS’s service capabilities enable it to get involved with clients in the planning and design process to manage business process and technological changes. Infrastructure enhancements have helped FIS’s organic revenue growth and have led to margin expansion. FIS is also expanding its business globally to achieve scale. The SunGard acquisition, in particular, has expanded FIS’s global reach.

Notably, the SPDR Technology ETF (XLK) and SPDR S&P 500 ETF (SPY) invest in FIS.

Continue to the next part for a discussion of FIS’s acquisitions.

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