Fiserv, Inc. (FISV) recently declared that Oak Bank has adopted its Premier bank platform, outsourced banking solution services and a wide range of its digital solution services. The bank chose Fiserv given its highly developed technology and its advanced, scalable and integrated systems.
Headquartered in Chicago, Oak Bank has assets worth $218 million. With the help of Fiserv’s services, the bank hopes to expand its market coverage and provide better service to its clients.
From now on, Oak Bank will be able to deploy Fiserv’s Premier bank platform. Apart from that, it will also gain access to a range of Fiserv’s service offerings, which include CheckFree RXP and CheckFree Small Business for bill payment solutions; Mobiliti for mobile banking services, Business Online and Retail Online for net banking, Branch Source Capture and Merchant Source Capture for easy check capture, Business Process Manager to control new accounts and process management, and Fiserv Clearing Network to provide solutions for image exchange and debit card processing.
These integrated user-friendly solutions by Fiserv would make the entire account processing system easier, more secure and risk free for Oak Bank and augment its business going forward. Oak Bank’s vice president and CFO, Rob Sullivan, is hopeful that Fiserv’s technologically advanced services will fulfill the bank’s requirements and exceed expectations. Fiserv’s management expressed its enthusiasm on the association by stating that it will add another feather to its cap.
The company appears quite proactive in winning contracts of late. On September 13, 2012, the company declared that its latest account processing portal, Acumen, has been adopted by MIDFLORIDA Credit Union. These associations are likely to bolster the company’s growth going forward.
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 Mastercard Incorporated (MA), Fidelity National Information Services, Inc. (FIS) and Total System Services, Inc. (TSS). 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 solutions.
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 #3 Rank, which translates into a short-term ‘Hold’ rating.
More From Zacks.com