FIS provides a comprehensive range of core processing services, check services,
card issuer and transaction processing services, risk management services, mortgage
loan processing, mortgage-related information products, and outsourcing services
to a wide variety of financial institutions, retailers, mortgage lenders and
mortgage loan servicers, and real estate professionals. We serve customers in
more than 60 countries worldwide, and have processing and technology relationships
with 35 of the top 50 global banks, including nine of the top ten. Approximately
50 percent of all U.S. residential mortgages are processed using our mortgage
processing platform.
Integrated Financial Solutions
The primary focus of our Integrated Financial Solutions business is to serve
the processing needs of independent community banks, credit unions, and savings
banks in the United States. Processing solutions include core processing, branch
automation, back office support systems, compliance, credit and debit card issuing,
image item processing, print and mail, ATM/EFT, retail internet banking and
bill payment services, commercial cash management and voice response services.
Over 8,000 commercial banks, savings institutions and credit unions utilize
one or more of these solutions.
Enterprise Banking Solutions
Our Enterprise Banking Solutions division focuses on serving the processing
needs of large U.S. financial institutions, automotive financing companies,
and commercial lenders. We also provide check risk management and related processing
products and services to businesses accepting or cashing checks at the point-of-sale,
and provide comprehensive cash access services in the gaming industry.
Our Lender Processing Services Operating Segment
Mortgage Processing Services
We offer the most widely used mortgage loan servicing system (known as MSP)
in the U.S. Our mortgage loan servicing platforms, including MSP, were used
to process over 50% of all residential mortgages by dollar volume in the U.S.
Our mortgage loan processing customers include Bank of America, Wells Fargo,
National City Mortgage, and U.S. Bank Home Mortgage. Our customer relationships
are typically long-term relationships that generally provide relatively consistent
annual revenues based on the number of mortgages processed on our platform.
Our sales and marketing efforts are primarily organized around our lines of
business, and by customer market segment and distribution channel. In our Transaction
Processing Services segment, we have a sales force that markets our core processing
services to our large national bank customers. A separate sales group focuses
on community based institutions. Specialized sales teams have been established
to promote our products to national and regional retailers and the automotive
and gaming industries. In addition, we have a sales force responsible for marketing
our services outside the United States. We also market certain products and
services of our Transaction Processing Services segment through indirect sales
channels, such as ICBA and CSCU, independent sales organizations, marketing
alliances, and financial institutions.
Competition
In the large bank sector, the markets for our core banking products and services
are highly competitive. The markets are very mature and have a number of existing
providers with a high level of experience and significant market share. Additionally,
given the attractive market characteristics in financial services, there are
from time to time new market entrants which seek to leverage shifts in technology
or product innovation to attract customers.
Our primary competitors include internal technology departments within banks,
data processing or software development departments of large companies or large
computer manufacturers, third-party payment processors, independent computer
services firms, companies that develop and deploy software applications, companies
that provide customized development, implementation and support services, and
companies that market software for the electronic payment industry. Some of
these competitors possess substantially greater financial, sales and marketing
resources than we do. Competitive factors for applications and services include
the quality of the technology-based application or service, application features
and functions, ease of delivery and integration, ability of the provider to
maintain, enhance, and support the applications or services, and price. We believe
that we compete favorably in each of these categories. In addition, we believe
that our financial institution industry expertise, combined with our ability
to offer multiple applications and services to individual customers, enhances
our competitiveness against competitors with more limited application offerings.
We compete with vendors that offer similar core processing applications and
services to financial institutions, including Fiserv, Inc., Jack Henry and Associates,
Inc., Metavante Corporation, Open Solutions, IBM and Accenture. In certain non-U.S.
markets, we compete with regional providers including Alnova, I-Flex, and Temenos.
Our competitors in the card issuer services market include third-party credit
and debit card processors such as First Data Corporation, Total System Services,
Electronic Data Systems Corporation, and Payment Systems for Credit Unions,
and third-party software providers, which license their card processing systems
to financial institutions and third-party processors. Competitors in the check
risk management services market include First Data's TeleCheck Services division,
CrossCheck, eFunds, and Global Payments.
The markets for our mortgage information services are also highly competitive.
Key competitive factors include quality of the service, convenience, speed of
delivery, customer service, and price. We do not believe that there is a competitor
currently offering the scope of services and market coverage that we provide
in our mortgage information services business. However, there are a number of
competitors in specific lines, some of which have substantial resources. First
American and Land America are significant competitors in a majority of our Mortgage
Information Services, including tax, flood, appraisal and default.
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