Fiserv, Inc. (FISV - Free Report) recently declared that Animas Credit Union has adopted its account processing solution platform, XP2 and other wide range of its digital solution services. Farmington, N.M. based Animas with $128 million in assets has chosen the company’s XP2 solutions given its highly developed account managing system and commercial lending capacity along with its efficient, flexible, scalable and integrated processes.
Backed by Microsoft .NET and IBM DB2 relational database, the customized XP2 account processing service offered by Fiserv shall provide absolute state-of-the-art solutions to Animas for improving its efficacy along with optimizing its entire customer service experience substantially. In addition, this association with Fiserv will help this institution deploy not only the company’s XP2 platform but also gain access to Fiserv’s several other service offerings including Mobiliti for fast mobile banking, Virtual Branch needed for home banking and online transaction, ConvergeIT: IVR required for voice recognition and Wisdom: Accounting for financial management solutions.
Fiserv’s XP2 platform has been designed for the financial institutions, which would use it to ameliorate its service standards and cater to growth potentials in the market. Fiserv’s management expressed its ebullience on the association by stating that the company’s advanced banking service portal will not only cater to Animas’ requirements but also put another feather in the cap of Fiserv.
The company appears quite proactive in winning contracts of late. On August 21, 2012, the company declared that its latest account processing portal, Cleartouch, has been adopted by six financial institutions. These associations are likely to be major growth drivers for the company going forward.
However, even with such moves, it is always wise for Fiserv to be extra cautious of competitive strides in the industry. The company’s primary competitors comprise big players such as Mastercard Incorporated (MA - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and Total System Services, Inc. (TSS - Free 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 ‘Neutral’ recommendation for Fiserv. The stock also bears a Zacks #3 Rank, which translates into a short-term rating of ‘Hold’.