Last week, Fiserv, Inc. (FISV) declared that Tech Credit Union has chosen its XP2 account processing solutions. This was done with the clear intent of ameliorating the company’s operations management system along with providing better service to its customers.
Backed by Microsoft .NET and IBM DB2 relational database, the improved XP2 account processor offered by Fiserv shall provide absolute state-of-the-art solutions to Tech Credit Union. The agreement encompasses Fiserv’s Wisdom, ConvergeIT: IVR and Integrated Desktop platform too. Coupled with these improved solutions, the company shall have a more integrated and technologically advanced structure installed which would seamlessly escalate operational efficiencies and also allow for optimum customer satisfaction.
Tech Credit Union’s senior vice president, Naseer Nasim expressed his ebullience on the venture by stating that Fiserv’s XP2 not only caters to the company’s requirements but also surpasses its expectations enormously with its integrated solutions. Not only will this contract allow for technological advancement of Tech Credit Union but will also put another feather in the cap for Fiserv.
Fiserv appears quite proactive in winning contracts of late. On June 20, 2012, AmBank Group selected its solutions for developing an integrated risk management system. We can be sure of such contract wins to be the major growth driver of Fiserv’s upcoming second quarter results of 2012.
However, even with such proactive moves, Fiserv should remain wary of its ominous rivals. On May 4, 2012, Fidelity National Information Services (FIS) won multi-year contracts for its core banking solutions from Calhoun County and AccessBank Texas. It is imperative that Fiserv takes note of such advances in order to retain its formidable position in the industry.
Fiserv currently retains a Zacks #3 Rank, which translates into a short-term ‘Hold’ rating. We currently retain our ‘Neutral’ recommendation on the company’s stock.
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