Fiserv Inc (FISV) recently signed a contract with Texas-based Randolph-Brooks Federal Credit Union (:RBFCU) to implement the DNA account processing system. The RBFCU, which manages assets worth $5.5 billion, selected Fiservs DNA platform to upgrade its enterprise infrastructure to better serve more than 430K members. <\/p>\n
Fiservs DNA account processing solution has gained significant momentum in recent times. The solution won 5 new contracts in the second quarter, making it a total of 10 in the first half of 2013. The DNA banking platform was the primary reason behind Fiservs acquisition of Open Solutions early this year. <\/p>\n
DNA was Open Solutions flagship product and had more than 800 customers at the time of acquisition. The acquisition of the DNA platform is expected to expand Fiservs customer base, going forward. Most of the DNA contracts are long term in nature, which is significant. These will be a recurring revenue source for Fiserv, going forward. <\/p>\n
Fiserv expects the synergies from the Open Solutions acquisition to exceed the original revenue and expense target of $75.0 million and $50.0 million, respectively. The acquisition is expected to be significantly accretive to earnings per share, going forward. <\/p>\n
Accretive acquisitions have been a key growth factor for Fiserv over the years. They have helped Fiserv expand its foothold in the financial and payment solutions business through its diversified product portfolio and continued technology upgrades. The companys advanced products are likely to further enhance its revenue streams. <\/p>\n
This is evident from the fact that the company signed 98 new clients, which helped it to expand its total number of clients for the Mobiliti solution to 1,600 at the end of the second quarter. <\/p>\n
Client demand for the Popmoney solution continues to remain strong as Fiserv signed 64 new institutions in the quarter. During the quarter, Fiserv signed 71 electronic bill payment clients and 38 debit processing clients. <\/p>\n
We believe that various contract wins and accretive acquisitions will help Fiserv to fight stiff competition from Fidelity (FIS), Mastercard (MA) and Global Payments (GPN) in the near term. <\/p>\n
However, a volatile macroeconomic environment, banking and financial service consolidation, poor cash flow, higher amount of debt and increasing industry regulations are the primary near-term concerns. <\/p>\n
Currently, Fiserv has a Zacks Rank #3 (Hold). <\/p>\n
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Follow this link: Fiserv Inc (FISV) recently signed a contract with Texas-based Randolph-Brooks Federal Credit Union (:RBFCU) to implement the DNA account processing system. The RBFCU, which manages assets worth $5.5 billion, selected Fiservs DNA platform to upgrade its enterprise infrastructure to better serve more than 430K members Continue reading
\nFiserv Wins DNA Contract from RBFCU<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"