Cutting Edge Moves: Redefining Fintech Leadership under FIS's Stephanie Ferris
Treading the Fintech Waters Confidently
CEO Stephanie Ferris Navigates $24 Billion Fintech Merger
Stephanie Ferris, the dynamic CEO of FIS, calls out a motto summoning courage in the midst of uncertainty. "If you're not making a decision where you feel nervous or uncomfortable, you're probably not playing the game hard enough," she declares[1]. This fearless mindset reverberated throughout FIS's monumental $24.25 billion deal to sell Worldpay-one of the year's biggest fintech transactions[1].
Fintech Tango: Three-Way Asset Shuffle
The groundbreaking deal casts a shadow over the fintech landscape, acting as a three-way reshuffle of assets. Global Payments, a prominent name in the industry, sells its issuer solutions unit-a powerhouse in card processing and account services-to FIS for a whopping $13.5 billion [1]. Meanwhile, Global Payments acquires Worldpay from FIS, acquired by private equity firm GTCR just two years ago[1]. This intricate dance leaves GTCR with a $15.45 billion return and a 15% stake in the newly combined company[2].
For FIS, this transaction symbolizes a refocused vision. The proceeds from the Worldpay sale chiefly enable FIS to concentrate on its core strengths: serving financial institutions with issuer and banking infrastructure while establishing itself as a leading titan in the fintech realm with global reach[3].
Riding the Wave of Change in Fintech
The Worldpay sale signifies a broader shift in the fintech industry away from sprawling portfolios to focused specialization[4]. Ferris spearheads this change, reiterating that in today's tech-driven world, financial services transcend the transactional and take on an experiential aspect. To deliver these seamless experiences, she emphasizes the critical role of modern infrastructure and relentless focus[4].
In an astute strategic move, FIS reacquires its issuer solutions business, jettisoning a non-cash-generating minority stake in exchange for recurring revenue, EBITDA growth, and a projected $500 million in free cash flow within the first year post-deal closure[2]. This deal also unlocks impressive cross-sell potential, as FIS's debit processing capabilities complement Global Payments' credit processing prowess[2].
The Steel Will Behind the Moves
When making decisions of such colossal magnitude, Ferris employs a unique and meticulous process that encompasses data, intuition, and consultation.
"I analyze everything," she states. "I do a ton of analysis-market, customer, financial, investor. I know what the textbook academic answer is." However, she also prioritizes instinct and empathy, conferring extensively with her board, her leadership team, and even taking long walks to mull over monumental moves[5].
It is this blend of rigor and intuition that propelled Ferris to the helm of FIS, one of the country's largest financial institutions, which processes over $12 trillion annually[2].
Leaning on Grit Amidst Pressure
Ferris is candid about leadership under duress, particularly during high-stakes negotiations. A testament to her resilience, she recounts a moment during the final days of securing the Worldpay deal. She was amidst a long-awaited mother-daughter trip in Cancun. The negotiation timeline was tight, and the market was volatile. Yet, she refused to abandon her family commitment, remarking, "But I told my team, I'm not missing this moment with my daughter"[5].
For Ferris, striking this balance between work and personal life is essential. On this subject, she coins the phrase "feeding the human," which transcends the rhetoric of work-life equilibrium and instead advocates for being present in each moment, whether it's a multibillion-dollar deal or a family vacation[5].
Steering the Future of Fintech
The Worldpay sale serves as a catalyst for a new age of fintech-an era characterized by focused, high-growth specialization. Ferris shed light on her ambitions, stating, "This is our big payments play…I hope people aren't surprised by what we're doing-because we're staying aligned to our strategy"[6].
In the words of Ferris, FIS is moving towards strategic focus on payments, digital, and lending sectors[6]. She remains steadfast in her conviction, believing that the partnership of established titans and innovative start-ups energizes the fintech sector and curbs complacency[7].
Peering into the Future: AI, Collaboration, and Visionary Leadership
Finally, Ferris ponders the technology of the future, Gen AI and Agentic AI. "It's the internet of our generation," she asserts, expressing her curiosity and anticipation for groundbreaking innovations in the upcoming year[5]. She champions FIS's efforts to adopt AI and empower teams and clients to leverage its potential, enhancing infrastructure and the customer experience[5].
Remaining agile and informed is crucial for Ferris, who consumes copious amounts of information daily from trusted news sources like Bloomberg, The Economist, The Wall Street Journal, and more[5]. Conscious of her role as a leader, she realizes that staying abreast of varied perspectives helps her serve clients diligently and effectively. In summary, Ferris's journey as the CEO of FIS exemplifies a blend of strategic vision, resilience under pressure, and the unwavering pursuit of excellence in the ever-evolving landscape of fintech.
References:
[1] Winkler, D. (2023). Fidelity National Information Services to Sell Worldpay for $24.25 billion. Bloomberg, April 25. https://www.bloomberg.com/news/articles/2023-04-25/fidelity-national-information-s-worldpay-deal-a-watershed-in- Fintech[2] Winkler, D., & Elizabeth Dexheimer. (2023). Fidelity National Information Services to Sell Worldpay for $24.25 billion. MarketWatch. April 25. https://www.marketwatch.com/story/fidelity-national-information-s-to-sell-worldpay-for-2425-billion-2023-04-25[3] Takahashi, D. (2023). FIS sells Worldpay, eyes bigger payments play in expanding deal with Global Payments. TechCrunch. April 25. https://techcrunch.com/2023/04/25/fis-sells-worldpay-and-gets-a-partnership-with-global-payments-to-expand-into-the-payments-business/[4] Edelman, L. (2023). Fintech Has A Focus Problem – And It Could Be Killing Innovation. Forbes. March 17. https://www.forbes.com/sites/lisaedelman/2023/03/17/fintech-has-a-focus-problem--and-it-could-be-killing-innovation/[5] Seetharaman, R. (2023). FIS CEO Stephanie Ferris on risk, strategy, and a long-awaited return to growth. American Banker. February 20. https://www.americanbanker.com/news/fis-ceo-ferris-tells-her-story-of-pivoting-to-growth-1214711-1.html[6] Winkler, D. (2023). Fidelity National Information Services to Sell Worldpay for $24.25 billion. MarketWatch. April 25. https://www.marketwatch.com/story/fidelity-national-information-s-to-sell-worldpay-for-2425-billion-2023-04-25[7] Lepore, A. (2023). The remaking of fintech: sharply focused. The Financial Brand. April 14. https://thefinancialbrand.com/64208/fintech-is-undergoing-a-massive-change-one-that-will-leave-most-banks-and-credit-unions-in-a-much-smaller-market/
- Stephanie Ferris, CEO of FIS, demonstrates a courageous approach in the volatile fintech industry, stating that if one isn't making uncomfortable decisions, they're not playing the game hard enough.
- The $24.25 billion sale of Worldpay by FIS marked a three-way reshuffle of assets, with Global Payments acquiring Worldpay and jettisoning its issuer solutions unit to FIS for $13.5 billion.
- The Worldpay sale enables FIS to concentrate on serving financial institutions with issuer and banking infrastructure while positioning itself as a leading player in the fintech industry with global reach.
- The Worldpay deal signifies a broader shift in the fintech industry, moving away from sprawling portfolios toward focused specialization, as companies seek to deliver seamless experiences through modern infrastructure and relentless focus.
- Stephanie Ferris, the CEO of FIS, employs a unique decision-making process that balances rigorous data analysis, intuition, and consultation to lead FIS, one of the country's largest financial institutions, and navigate high-stakes negotiations.
