Leading consumer, commercial and workforce information solutions provider, Equifax Inc. (EFX - Free Report) recently announced the expansion of its risk-based authentication services within the Identity and Fraud product suite.
The expansion will help Equifax to deliver effective screening, verification and authentication tools, which in turn will mitigate fraud, protect privacy and reduce data loss, thereby enhancing user acceptance and satisfaction with online channels.
Additionally, Equifax Identity and Fraud Solutions (IFS) will help to reduce fraud and manage risk in both the private and public sector, which will provide a secure environment for customers, thereby helping Equifax to expand its customer base and market share.
More than 70% of its customers use Equifax fraud, ID verification or authentication tools to manage online fraud mitigation. Moreover, as per American Banker, nine out of the top ten banks turn to Equifax for advanced fraud solutions while booking new accounts.
Earlier, in order to further strengthen its position in the identity protection market, Equifax acquired TrustedID, to join Equifax’s Personal Solutions group. TrustedID deals with identity protection solutions and protects privacy and reputation on social media services.
Equifax reported revenues of $586.9 million, up 14.3% year over year in the second quarter of 2013. The upside is attributable to top-line growth across the board.
Equifax’s focus on product innovation, broadening data assets through acquisitions and continued share gains in North America are encouraging. We believe Equifax is well positioned to benefit from its leadership in important markets and strength in international markets.
Given the company’s strong correlation with the consumer and financial markets as well as its U.S. and European exposure, we see a gradual improvement in results. Competition from Fiserv Inc. (FISV - Free Report) and Green Dot CP - A (GDOT - Free Report) is however a concern.
Currently, Equifax has a Zacks Rank #3 (Hold). Investors can instead consider stocks such as Official Payment Holdings, Inc. , which has a Zacks Rank #2 (Buy).