Fiserv, Inc. (FISV - Free Report) yesterday announced a partnership with Iowa-based Sioux Valley Community Credit Union (CCU) and Washington-based Coulee Dam Federal Credit Union (FCU) for improving their technological suite and delivering updated and enhanced services to members.
Both the credit unions will be using Fiserv’s Portico core account processing platform. With these new partners, Portico has added 15 credit unions over the past year. The Portico product is integrated with Fiserv’s digital and mobile banking solutions.
Apart from Portico, Sioux Valley CCU will also use debit and credit processing, digital and mobile banking and bill payment solutions from Fiserv. Coulee Dam FCU will also be using a large portion of Fiserv’s technology solutions.
A glimpse of Fiserv’s price trend reveals that the stock has had an impressive run on the bourse on a year-to-date basis. Shares of Fiserv have gained 16.3%, outperforming the Zacks S&P 500 Composite’s increase of 4% year to date.
Active on the Partnership Front
Partnerships like these makes sense considering the rapidly changing financial services industry and increasing demand for digital services. In fact, Fiserv has been quite active on the partnership front to expand into digitalization.
On Jun 18, 2018, Fiserv tied-up with Dollar Bank to help the latter modernize its digital banking and payment suite with the help of its Architect solution. On Jun 6, the company collaborated with leading credit union, VyStar for enhancement of Vystar’s mobile banking platform.
In May, Fiserv allied with Broadway Bank to help the latter grow in the commercial banking market and collaborated with Merchant Bank of Sri Lanka & Finance PLC (MBSL) for improvement in financial services offerings.
In April, the company partnered with SISCOOP to enable 26 Mexican credit unions to offer a full range of secured digital banking and payment services using its Digital Access technology. In the same month, Fiserv allied with Carter Bank & Trust of Martinsville wherein the latter will use the Digital Edge suite from Fiserv to digitalize banking services and automate multiple manual processes as part of a strategic transformation.
The company entered similar partnerships with Mastercard in March, Kawartha Credit Union in February and with Motor City Community Credit Union, First Foundation Bank and The Home Savings and Loan Company of Kenton in January.
Such strategic partnerships will help Fiserv expand its product and service offerings in the market, thereby strengthening its position, opening up more opportunities for long-term growth and improving competitiveness. Fiserv is focused on becoming a global leader in transaction-based technology solutions.
Zacks Rank & Stocks to Consider
Currently, Fiserv is a Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Business Services sector include Mastercard Incorporated (MA - Free Report) , FLEETCOR Technologies, Inc. (FLT - Free Report) and WEX Inc. (WEX - Free Report) . While Mastercard and WEX sport a Zacks Rank #1, FLEETCOR carry a Zacks Rank #2.
The long-term expected earnings per share (three to five years) growth rate for Mastercard, FLEETCOR Technologies and WEX is 19%, 16.5% and 14.3%, respectively.
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