Fidelity National Information Services, Inc. FIS recently announced the launch of its Securities Finance Matching Platform and SMB Digital Lending solutions. Both these new launches are aimed at enhancing offerings for FIS’s clients and improving efficiency.
The Securities Finance Matching Platform launched in the U.K. aims to streamline securities finance trades by leveraging smart, automated matching technology. Lenders and borrowers will benefit from superior matching services with reduced manual interference. This is a time-opportune move on FIS’s part as it addresses rising trading volumes and tightening margins through its efficiency and automation.
The Securities Finance Matching Platform solution will aid clients in reducing their costs, provide customers with increased market depth and liquidity, as well as enhance risk management. Hence, these value propositions poise FIS's top line well for growth as more financial institutions will use its solutions.
FIS’ new SMB Digital Lending solution, developed with Lendio, focuses on the underserved small and medium-sized business (SMB) sector. This automated lending platform simplifies and accelerates the loan origination process, addressing the challenges of extensive documentation requirements.
SMBs comprise 99.9% of U.S. total businesses and a significant portion of GDP. Hence, this initiative helps banks to capture a vital market segment. This new development in business is likely to help FIS’s Banking Solutions segment, whose revenues grew 2% year over year in the first quarter.
Moves like this are expected to aid FIS in achieving its revenue guidance for 2024 between $10.10 and $10.15 billion. The Securities Finance Matching Platform is expected to attract UK clients and expand into the European Union and the United States, while the SMB Digital Lending solution enhances FIS’ competitive edge in digital banking.
Price Performance
Shares of Fidelity have gained 31.8% in the past year compared with the 10.8% rise of the industry.
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Zacks Rank & Key Picks
Fidelity currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Financial Transaction Services space are MoneyLion Inc. ML, Repay Holdings Corporation RPAY, and Shift4 Payments, Inc. FOUR. Each of these companies carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MoneyLion’s current-year bottom line indicates a 131.3% year-over-year improvement. The consensus estimate for ML’s current-year top line is pegged at $524.8 million, implying 23.9% year-over-year growth.
The Zacks Consensus Estimate for Repay Holdings’ 2024 earnings is currently pegged at 91 cents per share, indicating 3.4% year-over-year growth. It beat estimates in two of the past four quarters and missed twice, with an average surprise of 3.3%. The consensus mark for RPAY’s revenues of $317.8 million suggests a 7.1% increase from the year-ago level.
The Zacks Consensus Estimate for FOUR’s 2024 earnings of $3.86 per share indicates 36.4% year-over-year growth. It beat earnings estimates two in the past four quarters and missed twice, with an average surprise of 12.3%. The consensus estimate for FOUR’s current-year revenues is pegged at $1.3 billion, a 40.8% increase from a year ago.
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Repay Holdings Corporation (RPAY) : Free Stock Analysis Report
Shift4 Payments, Inc. (FOUR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
