Recently announced, Fiserv, Inc. (FISV) launched its Central Source Capture solution. Using this platform, banks and other financial institutions will be able to take check images along with easing out and modernizing their general check processing system.

This advanced Central Source Capture developed by Fiserv not only caters to ameliorating the basic check processing functions such as clearing, electronic cash lettering, capture etc. but also integrates pervasively with core account processing, capture applications and end-to-end image transfer solutions. Such features make the entire system easier to operate and also reduce additional expenses for the company.

Fiserv, cognizant of the diminishing use of checks in the world today, however, ascribes complex and expensive check handling systems to its waning popularity. Management believes that using their advanced solution, not only will costs of check processing be mitigated but it would also make the system less arcane and hence, restore the use of checks incipiently.

Financial institutions need to cater to many important aspects to bolster consumer satisfaction and to maintain industry standards in today’s world. Hence, Fiserv’s advanced check processing solution is ideally suited to free such banks of basic hassles such as check clearing, processing etc. while they focus more on ameliorating other core issues of their day to day operations. This solution is likely to be quite momentous and help Fiserv retain its formidable position for providing check processing solutions in the U.S.

However, the company should remain wary of its ominous rivals in the industry. These include big players such as Heartland Payment Systems (HPY), Official Payments Holdings Inc. (OPAY) and Vantiv Inc. (VNTV).

We currently have a long-term recommendation of ‘Neutral’ for Fiserv’s stock. In the short run, we have a Zacks #3 Rank for the stock, which translates into a short-term rating of ‘Hold’.

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