Fidelity National Information Services Inc.
) recently helped New Zealand's ANZ to shift from its core
banking system to single FIS core platform. The bank migrated
approximately 3 million customer records and transferred $48
billion (AU$46 billion) onto FIS platform.
The current migration was a part of a long standing agreement
between National Bank of New Zealand and ANZ when the latter
acquired the former in 2003. More importantly, FIS was preferred
by ANZ due to its wide variety of solutions and services in the
FIS core banking solution platform has been a game changer for
banks over the last couple of years. The shift to Fidelity's
platform has enhanced their ability to process files within a
short span of time, thereby facilitating cost management and
further focus on customer service.
Enhanced operating efficiency has been the primary reason for
Fidelity's ever-growing banking clientele. Currently, increasing
consolidation, tightened regulations, lower interest rates and
the liquidity crunch have forced banks to look for ways to
differentiate their services in a cost effective way. Fidelity's
low-cost platform has emerged as a savior for these institutions
in recent times.
We believe that Fidelity's new customer wins and customer
retention success are the keys to the company's future prospects.
We believe that Fidelity's commanding position in the financial
services market, expanding international operations, recurring
revenue model, diversified product portfolio and, accretive
acquisitions will drive growth.
Moreover, Fidelity is well positioned to benefit from
increasing investments in emerging technologies such as mobile
banking. Mobile banking is developing as an extension of online
banking, as mobile usage continues to accelerate globally.
Nevertheless, increasing consolidation in the banking sector,
a challenging environment for the Payment Solutions business and
an uncertain regulatory environment are the primary headwinds in
We maintain our Neutral recommendation on a long-term basis,
primarily due to a highly-leveraged balance sheet and intense
competition from other major players such as
Currently, Fidelity has a Zacks Rank #2 (Buy).
FIDELITY NAT IN (FIS): Free Stock Analysis
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