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pww.comVisa Inc. Presents at 2024 RBC Capital Markets Financial Institutions Conference, Mar-05-2024 12:15 PM - NYSE:V

NYSE:V

Ryan M. McInerney [President, CEO & Director] 💬

During the presentation and subsequent Q&A session at the 2024 RBC Capital Markets Financial Institutions Conference, Ryan M. McInerney, President, CEO & Director of Visa Inc., discussed a variety of topics related to the company's performance, strategy, and outlook. Below is a detailed summary of his remarks:

Opening Remarks

  • Visa’s Performance and Outlook:
    • Visa sees stability in the global payment landscape, with no signs of a recession in the data.
    • The company operates on a fiscal year starting in October, and its guidance remains unchanged.
    • Some markets with high variable-rate mortgages, such as Australia and the UK, have seen shifts in disposable income affecting spending.

Categories of Spend

  • Shifts in Spending Patterns:
    • Post-COVID, spending patterns have largely returned to pre-pandemic levels, with some structural changes.
    • E-commerce has become structurally higher, both domestically and internationally.
    • Travel, entertainment, and other services are structurally higher than pre-COVID levels.

Regulatory Landscape

  • Regulatory Trends:
    • Governments and central bankers are convinced that digital payments benefit their countries.
    • Regulatory approaches vary, with some markets taking a free-market approach and others being more interventionist.
    • Visa invests heavily in government engagement to align with regulatory objectives and support digital payment acceleration.

Cybersecurity

  • Cyber Defense Strategy:
    • Visa faces approximately 0.5 billion attacks on its perimeter monthly, requiring robust cyber defenses.
    • The company employs over 1,000 individuals dedicated to cybersecurity and has spent billions of dollars on protection.
    • Visa offers Cyber-as-a-Service and enhanced fraud capabilities, such as Visa Advanced Authorization, to clients.

Generative AI

  • AI Applications:
    • Visa is leveraging generative AI to drive productivity, particularly within engineering teams.
    • The company is developing a platform called Visa Assist, powered by generative AI, to enhance customer service.
    • Visa is building foundational Large Language Models (LLMs) based on its data to offer new services and improve risk capabilities.

Partnership with ServiceNow

  • ServiceNow Collaboration:
    • Visa partnered with ServiceNow to create customized value-added services for the ServiceNow platform.
    • The initial product is a purpose-built disputes process aimed at joint clients.
    • ServiceNow's global presence enables the distribution of Visa's products and services to a wider audience.

Acquisition of Pismo

  • Issuer Processing and Core Banking:
    • Pismo is a cloud-native API-based issuer processing and core banking provider.
    • The acquisition addresses the need for cloud migration and global expansion among Visa’s clients.
    • Pismo’s technology combined with Visa’s brand and reliability is generating significant interest from potential clients.

Competition

  • Competitive Environment:
    • Visa thrives on competition, which drives innovation and enhances its service offerings.
    • The recent merger of Discover and Capital One will create a scaled competitor, but Visa remains confident in its global network and capabilities.

Brand Management and ESG

  • Brand Stewardship:
    • McInerney takes the stewardship of the Visa brand very seriously and is committed to evolving and innovating.
    • Visa focuses on financial inclusion, helping communities and small businesses thrive.
    • The company believes in acting like an owner and prioritizing the needs of its markets and clients.

Leadership and Time Management

  • Leadership Philosophy:
    • McInerney spends time with teams, clients, and investors to gather insights and improve operations.
    • He emphasizes acting like an owner and being open-minded to change based on facts.
    • Visa’s headquarters will be renamed the Visa Market Support Center to reflect the company’s commitment to serving markets worldwide.

Closing Message to Investors

  • Investor Message:

    • Visa has an amazing brand, platform, and growth opportunities, all in service of its clients.

    • The company is proud of its deep client relationships and innovative strategies.

    • Visa is focused on delivering value to clients and investors through its diversified business model and expansion strategy.

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