Equifax to Aid ICE Training - Analyst Blog

Leading proprietary financial database provider Equifax Inc. (EFX) recently announced that it will work in association with the U.S. Immigration and Customs Enforcement (ICE) for the upcoming complimentary ICE Mutual Agreement between Government and Employers (IMAGE) training sessions at the Criminal Information Clearinghouse in Los Angeles.

The TALX segment of the organization has been called upon to present its IT know-how to enhance the quality of the educational workshop. At the training session, TALX will discuss in detail how the functionality and features of the I-9 compliance will help employers streamline their processes, increase compliance and enhance reporting capabilities.

Moreover, Equifax has witnessed another major development in recent times, as it joined hands with Moody’s Analytics to redesign CreditForecast.com, adding powerful new features to help the software analyze and forecast consumer credit risk with greater efficiency. With this advanced tool CreditForecast.com can now help analyze consumer behavior within credit score segments more accurately.

The CreditForecast.com service will attract many customers especially from the banking fraternity. Simultaneously, it will attract many consumer credit product companies involved in mortgages, home equity loans, auto loans, bank cards and student loans.

Equifax has also shifted focus to the small business segment and new product design. It is constantly rolling out new services through joint ventures and partnership programs, thereby expanding the customer base.

The introduction of new products and solutions through collaboration is a good growth strategy adopted by Equifax, but competitive pricing remains a key factor for their success.

The services are intended to help customers monitor and strengthen their own credit performance and the credit health of companies they’re doing business with. We expect the initiative to open up a new source of revenue for the company.

We believe Equifax is well positioned to benefit from its leadership position in important markets, heightened consumer concern regarding identity theft and strength in international markets. With the sale of its direct marketing division, the company is now focusing more on its main business. Equifax is also on an expansion mode with product launches and international growth. However, given the strong correlation to consumer and financial markets, the company’s Europe exposure and competition from Automatic Data Processing (ADP), improvement in results will at best be gradual, in pace with the country’s slow economic recovery.

The company currently has a Zacks Rank #4 (short-term Sell recommendation).