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Recently, Fiserv, Inc. (FISV - Analyst Report) declared that its Source Capture Solutions has been adopted by Navy Army Community Credit Union. This was done with the clear intent of ameliorating Navy Army’s total check deposit process along with providing better service to its customers.

Previously, Navy Army had been utilizing the company’s wide range of banking solution services which include DataSafe required for core account processing, CheckFree RXP for an improved online bill payment procedure, LynxGate for better ATM management and Virtuoso, a premier platform for online banking solutions. Now, with this association, Navy Army will also utilize the company’s Branch Source Capture, ATM Source Capture, the Fiserv Clearing Network, mobile capture and item processing services.

This integrated user-friendly solution by Fiserv would make check deposit system easier, more secure and risk free for Navy Army. In addition, the technologically advanced solution will also seamlessly minimize the transaction cost associated with the deposit process and optimize its entire customer service experience substantially. Gary Brand, the director of Source Capture Solutions for Fiserv, who was highly optimistic about the association, stated that the company’s latest banking service portal is expected to enhance Navy Army’s whole retail banking portal significantly.

The company’s continuous contract win is likely to have a positive impact on its business. On August 2, 2012, the company declared that BridgePortfolio, Inc., a Chicago-based Back Office Outsource Provider has extended its agreement with the company for five-years to deploy its Portfolio Management and Trading solutions platform. The company through its improved service offerings will provide updated wealth management solutions to BridgePortfolio.

However, it is always wise for Fiserv to be extra cautious of competitive strides in the industry. Formidable players to take note of in this regard include Mastercard Incorporated (MA - Analyst Report), Fidelity National Information Services, Inc. (FIS - Analyst Report) and Total System Services, Inc. (TSS - Analyst Report). Moreover, Fiserv faces an ongoing threat from billers and self-sufficient financial institutions that develop and use their own electronic payment transactions and Internet banking solutions.

The current Zacks Consensus Estimates for Fiserv, Inc. are $1.27 and $5.18 for the third quarter of 2012 and for 2012, respectively. The estimates represent a year-over-year growth of 9.82% for the third quarter and 13.06% for 2012. We currently have a long-term recommendation of ‘Neutral’ for Fiserv. The stock also bears a Zacks #3 Rank, which translates into a short-term rating of ‘Hold’.

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