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Broadridge (BR) Introduces Cloud-Based Data Control Solution

Zacks Equity Research

Broadridge Financial Solutions, Inc. BR yesterday announced the launch of a cloud-based solution — Broadridge Data Control Solution suite — aimed at helping financial institutions achieve operational control over transaction data, reduce exposure to risk and better comply with the regulations.

The suite integrates Broadridge's reconciliation and matching solution with improved data analytics, multi-bank connectivity and flexible financial messaging.

So far this year, shares of Broadridge have gained 30.4% compared with 24.3% rise of the industry it belongs to and 18% rally of the Zacks S&P 500 composite.


Operational Details & Benefits

The new solution will aid firms generate strong control points across their operations, thereby ensuring data and system integrity and accurate balance, position and transaction management. It is expected to offer operational and regulatory reporting and sophisticated analytics for real-time insight into critical and time-sensitive processes.

The solution can be offered as an independent application or integrated with other Broadridge applications as a control layer. Broadridge Consulting Services offers data analysis, data validation and target operating model transformation, as complementary with the solution.

Considering the importance of how data inconsistencies can affect any business, the latest launch seems to be a strategic move on Broadridge’s part to strengthen its foothold in the global investment management industry.

We believe, the move will help Broadridge strengthen its Global Technology and Operations segment, which serve capital markets, wealth management and asset management firms. Revenues from the segment increased 8.1%year over year in fourth-quarter fiscal 2019.

Alastair McGill, general manager of Data Control Solutions at Broadridge, stated, "The Data Control Solution suite is the latest in a succession of initiatives leveraging technology innovation to help Broadridge customers get ahead of today's challenges and capitalise on what's next."

Zacks Rank & Stocks to Consider

Broadridge carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Huron Consulting HURN, Charles River Associates CRAI and Fiserv FISV. While Fiserv sports a Zacks Rank #1, Huron Consulting and Charles River Associates carry a Zacks Rank #2 (Buy).

Long-term earnings (three to five years) growth rate for Huron Consulting, Charles River Associates and Fiserv is estimated 13.5%, 13% and 12%, respectively.

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