) declared that its wide range of digital banking solution services
have been adopted by Intracoastal Bank. The bank with $167 million
in assets selected Fiserv given its highly developed platform with
flexible, scalable and integrated financial services technology
Previously, Intracoastal Bank had been deploying the company's
Premier bank platform along with other digital services including
Business Online and Retail Online for net banking, CheckFree RXP to
provide bill payment solution and Popmoney for person-to-person
payment services and Merchant Source Capture for easy check
capture. Now, with this association the bank will also gain access
to a range of Fiserv's service offerings including ATM Source
Capture for easy check deposits at ATMs, LinkLive Banking used for
instant messaging services, Mobiliti to organize mobile banking,
AccountCreate for effortless e-account opening.
These user-friendly solutions by Fiserv would make the entire
banking system much easier, more secure and risk free for
Intracoastal Bank. In addition, Fiserv's banking solution platform
has been designed for the banks and financial institutions, which
would use it to ameliorate its service standards and cater to
growth potentials in the market.
The company appears quite proactive in winning contracts of
late. Recently, Oak Bank adopted its Premier bank platform,
outsourced banking solution services and a wide range of its
digital solution services. We can be confident of such contract
wins as these may prove to be major growth drivers for the
company's upcoming quarters ahead.
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 include big players such as
Fidelity National Information Services, Inc.
Total System Services, Inc.
). 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
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 carries a Zacks #2
Rank, which translates into a short-term 'Buy' rating.
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