Fiserv's Solution for BSI Financial - Analyst Blog

By Zacks | December 13, 2012 AAA

Recently, Fiserv, Inc. (FISV) declared that its LoanServ solution has been adopted by BSI Financial Services (BSI). The company's LoanServ solution is mainly used in managing the entire loan processing services, which include integrated default management as well as compilations, cashiering, escrow and accounting of investors. The institution has selected Fiserv given its highly developed platform with flexible, scalable and advanced solutions. Headquartered in Irving, Texas, BSI Financial engages in supplying business process outsourcing solutions, providing various services including mortgage subservicing, default management, loss mitigation, due diligence, Real Estate Owned (REO) and quality control solutions. With the introduction of LoanServ in its product profile, BSI Financial will be able to modify its sub- services with improved default management solutions and it will easily fulfill the requirement of its clients.

The company expressed its enthusiasm regarding the contract by stating that it will strengthen its LoanServ service platform. Fiserv's solution would help BSI Financial to ameliorate its service standards and cater to growth potentials in the market.

Various strategic contract wins hold future pledge for Fiserv. The company confirmed winning a bunch of contracts from various financial institutions during 2012. Recently, the company entered into a multi-year contract with Trustmark National Bank, a unit of Trustmark Corporation. With the agreement, the bank has extended its long-term association with Fiserv.

However, the company's financial segment faces a huge competition from various big companies including Mastercard Incorporated (MA) and Fidelity National Information Services, Inc. (FIS). VW Credit, Inc. (VCI) recently adopted Fidelity's AutoSuite automotive solution for its North American loan and lease processing. Hence, the company has to be extra cautious of competitive strides in the industry.

The current Zacks Consensus Estimates for Fiserv, Inc. are $1.42 and $5.17 for the fourth quarter of 2012 and for 2012, respectively. The estimates represent a year-over-year growth of 12.1% for the third quarter and 12.9% 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.

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