Fiserv Case Study

Fiserv Case

The Nature Of the Organization

1. fiserv is a regional provider of financial services data processing for small banks and thrifts. The company's 2008 revenue was $4.74 billion with net income of $537 million.

2. Fiserv competed on several markets in this industry. It was the us market leader in core processing services. Fiserv became the largest independent us check processor as well as the leading us banking services provider ad leader in bill payment and presentment services when it acquired check free in December 2007.

3. Fiserv is a service organization. It services other companies who provided to consumers.

4. Once fiserv took on ebilling it has to find a new or revised market. Fiserv wanted to segment the market so the firm conducted a 1,236 30 minute online interview with a US sample of ebilling users and potential users. The responses were statically analyzed producing 6 distinct groups with different attitudes and behaviors. They also conducted focus groups and concept tests.

5. The requirements for success is to get as many consumers to adopt ebilling as possible. For consumers who opted to receive an ebill through fiserv, the biller paid fiserv $0.025 each time the consumer viewed the ebill. For consumers who opted to turn off paper billing the biller paid fiserv $.40 per month per consumer.

The Organization

1. Fiservs major goal is for companies to offer ebilling through fiserv. Then the mission is to get consumers to adopt ebilling. The ultimate goal is for consumers to turn off the paper.

2. Fiserv is offering a more convenient an environmentally friendly way to pay bills. Based on past performances, fiserv can dominate in this market. Since they are already the leading bill payment provider, they already have a trust with their clients.

3. This is agreat opportunity for fiserv. This is just another source of revenue for the company.

4. The fact that this idea was already successfully tested and proved to be a more efficient way of paying bills.

Plan of Action

1. They can adopt this new electronic way of billing. They can still offer paper way as well.

2. The biller will pay fiserv $.025 each time the consumer viewed the ebill. For consumers who turned off the paper billing, the biller paid fiserv $.40 per month per consumer. The avg cost to convert a consumer to exclusive ebilling was $4.50 and the avg cost to convert a consumer to ebill viewing was 2.00. It cost the billets an avg of $1.50 per consumer to turn off paper.

3. It can be quite expensive for them to convert consumers to ebilling as well as advertising to turn off paper.