Fidelity National Information Services

Moat composition is anchored by switching costs: banks and capital markets clients embed FIS platforms deeply into operations, with migrations risky, expensive, and multi‑year. This is reinforced by long contracts, an 80 percent recurring revenue mix, and a $23.5 billion backlog of remaining performance obligations that provides revenue visibility.

Efficient scale exists in U.S. bank tech where a few large vendors serve most institutions. Intangible assets include long‑lived software, domain expertise and the NYCE debit network. Network effects are moderate via NYCE’s acceptance footprint but less central than switching costs.

Potential erosion vectors are cloud‑native cores and modular fintech stacks reducing vendor lock‑in, though displacement tends to be gradual. Component view: Switching costs strong and durable; Efficient scale good; Intangibles good; Cost advantages moderate; Network effects modest.