A leading provider of financial services technology solutions,
recently unveiled the FATCA Manager, a monitoring and control
solution, which can be strategically used by financial
institutions to comply with the Foreign Account Tax Compliance
FATCA is based on the Financial Crime Risk Management platform
(FCRM) developed by Fiserv. The new solution will use the
detection, workflow and reporting techniques to effectively meet
compliance directives. By deploying the solution, financial
institutions will be able to make a single investment to counter
money laundering, fraud and global tax evasion issues.
FATCA is basically aimed at finding tax evaders, especially
the ones with offshore accounts and assets. Moreover foreign
financial institutions can also keep a tab of financial accounts
held by U.S. taxpayers or other foreign bodies, wherein U.S.
taxpayers hold ownership interest. Any failure on part of the
financial institutions to report violations of the Internal
Revenue Service (IRS) control guidelines may lead to heavy
penalties. This is where FATCA can help companies.
FATCA Manager automates the process of many U.S. indicia and
entity classification checks, which in turn help in identifying
exceptions and monitoring for changes. We believe this solution
would be specifically helpful for different financial
institutions and help them to comply with different rules and
regulations of the tax authority and the IRS.
Fiserv is coming out with effective tax and financial services
solutions, which have been widely accepted. The company has in
fact signed 98 new clients, which helped it to expand its total
number of clients for the Mobility solution to 1,600 at the end
of the second quarter.
This apart, the company is also witnessing an increase in
demand for the Popmoney solution, which continues to remain
strong as Fiserv signed 64 new institutions in the quarter.
During the quarter, Fiserv signed 71 electronic bill payment
clients and 38 debit processing clients.
We believe that various contract wins and accretive acquisitions
will help Fiserv to fight stiff competition from
) in the near term.
On the other hand, deterioration in the global macroeconomic
environment, reduction in spending by banking and financial
service clients and consolidation in this space are working
against the company.
Currently, Fiserv has a Zacks Rank #3 (Hold).
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