Fiserv CEO targets $500 million savings while exploring debit network sale
At an investor conference last week, Fiserv CEO Takis Georgakopoulos outlined a plan to secure $500 million in savings and allocate $100 million to technology infrastructure while reviewing potential divestitures. He said the profit benefits of the initiative, dubbed Project Elevate, will not fully appear until 2029, with operating margin benefits expected to be about double those seen in 2027.
Georgakopoulos said the company will pitch its Finxact core ledger to two-sided e‑commerce marketplaces that need a modern ledger, in addition to selling the service to banks and fintechs. He noted that Fiserv is reviewing standalone businesses acquired in prior years that were never fully integrated and could be divested if they lack desired growth or margin profiles. Earlier this year Fiserv sold its ATM business and an education‑financing software unit, and it is now evaluating a possible sale of either its Star or Accel debit network.
“You can sell it as a banking core, but there are low-hanging fruit, and there is a very large [opportunity] out there for a core ledger for enterprise clients,” Takis Georgakopoulos, CEO said.
“On Project Elevate, we do expect that to be more back-loaded as we expect 2029 benefit on the operating leverage on the margin side to be almost 2x the benefit that we see in 2027,” Paul Todd, CFO said.
Before this announcement, Fiserv had already divested its ATM business and an education‑financing software unit earlier in the year. Takis Georgakopoulos became CEO in June after succeeding co‑president Mike Lyons, who moved to lead Truist Financial. Paul Todd was named chief financial officer in October prior to Lyons’ departure.
What we know
Fiserv is seeking $500 million in savings, with a plan to invest $100 million in its technology infrastructure.
“On Project Elevate, we do expect that to be more back-loaded as we expect 2029 benefit on the operating leverage on the margin side to be almost 2x the benefit that we see in 2027,” Todd said.
Georgakopoulos was elevated to CEO from a co-president post to lead the Milwaukee-based company in June after Mike Lyons exited to lead Truist Financial.
Georgakopoulos told analysts earlier this month that the company is considering selling one of its debit networks.
In presenting last week at an investor conference, Georgakopoulos emphasized that the company hadn’t previously been organized in a way that allowed it to sell its key services and cross-fertilize its offerings for clients.