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Fiserv Combines Two Loan Solutions

Zacks Equity Research

Fiserv (FISV) recently announced that it is integrating Common Origination Platform and LoanServ into a single solution. Fiserv’s LoanServ is an online real-time servicing solution that streamlines all processes related to retail loans.

On the other hand, the Common Origination Platform is a single-platform solution, which provides borrowers’ data across all lending channels and products in one place regardless of the point of origination or loan type.

The integration of the two systems will improve efficiency by reducing errors as well as duplication within the two systems. The integration will help lenders to have a consolidated view of each customer and the risk of their loan portfolios. The integration of the two solutions will make the lending process much faster and easier at a lower cost.

Of late, Fiserv has been consolidating its products and solutions to effectively serve its customers on a real time basis and at a lower cost. Fiserv recently added its Popmoney person-to-person payment service to mobile banking and payments platform, Mobiliti. We believe that the latest integration will further boost Fiserv’s customer base going forward.

Fiserv has been expanding its foothold in the financial and payment solutions business through its diversified product portfolio and continued technology upgrades. The company’s advanced product ranges are likely to further enhance its revenue streams. Moreover, Fiserv’s various contract wins have enabled it to expand its presence in the industry.

Additionally, Fiserv has a loyal and broad customer base. In the fourth quarter of 2012, Fiserv extended its electronic payment and presentment relationship with Bank of America (BAC) for another 10-year term. Fiserv signed 113 electronic bill payment clients and 40 debit processing clients in the quarter, which include power generation company American Electric Power (AEP) and healthcare provider Humana (HUM).

However, volatile macroeconomic environment, banking and financial service consolidation, poor cash flow, tough competition and increasing industry regulations are the primary concerns in the near term.

Currently, Fiserv has a Zacks Rank #2 (Buy).

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