Jack Henry & Associates Strengths, Domain Expertise, and Key Differentiators
Jack Henry & Associates is a provider of technology solutions and payment processing services primarily for the financial services industry. Its solutions serve more than 9,000 customers nationwide and are marketed and supported through three primary brands.
Jack Henry Banking, a division of Jack Henry & Associates, is a provider of integrated computer systems for banks ranging from de novo to multi-billion-dollar institutions.
Symitar, a division of Jack Henry & Associates, is the leading provider of integrated computer systems for credit unions of all sizes.
ProfitStars, a division of Jack Henry & Associates, helps financial institutions of every asset size and charter, and diverse corporate entities, proactively identify and prepare for risks and market changes that could negatively impact their business.
ProfitStars’ solutions and services include JHA Payment SolutionsTM, Information Security & Risk Management, Online & Mobile, Lending, Financial Performance, and Imaging/Data Management. With banks recovering from the financial crisis, Jack Henry & Associates, one of the largest enterprise apps vendors that automate and support back-office functions of financial institutions, has started to rebound as well. Despite bank failures that hampered Jack Henry’s growth since 2008, the vendor has succeeded in converting some of its in house bank clients to long-term outsourcing arrangements, which allowed for a steady increase in support revenues. More up-selling opportunities through these captive banks by offering them payment and merchant capture services generated incremental revenues. Jack Henry’s credit union business Symitar has fared better than its banking operations.
Jack Henry & Associates Recent Developments
In March 2020, Jack Henry & Associates unveiled that BusinessManager has been fully integrated into the SilverLake System core platform to streamline accounts receivable (A/R) financing. This integration allows financial institutions to provide funding to their business customers with increased speed, efficiencies, and accuracy.
In April 2019 Jack Henry Banking division unveiled the availability of JHA OpenAnywhere, a digital account opening solution that allows financial institutions to onboard new accounts within a matter of minutes. When opening a new account, consumers and businesses seek financial institutions that can accommodate their needs at any time and on any device. Account opening is the first sign of modern digital banking experience. JHA OpenAnywhere seamlessly integrates with Jack Henry Banking's SilverLake System, CIF 2020, and Core Director core platforms for an intuitive and easy to deploy user experience. The solution delivers a quick, simple account opening experience to existing and potential customers.
In September 2018, ProfitStars, a Jack Henry & Associates division released its Gladiator iPay Enterprise Security Monitoring solution (iPay ESM). iPay ESM is a web-based monitoring and reporting solution designed to help financial institutions mitigate online bill pay fraud and comply with regulations. More than 2,500 regional and community institutions offer retail and small businesses online bill pay through iPay Solutions, a competitive service that drives revenue and enhances customer loyalty. Now, iPay bill pays clients can combat fraud while more easily and efficiently complying with the FFIEC's evolving regulations for internet banking security. iPay ESM features enhanced fraud analytics that proactively tracks strategic bill pay functions and flag items that need immediate attention. The solution uses analytics to determine if the behavior is expected and legitimate as compared to historic data and patterns. The combination of alerts and reduced false positives enable financial institutions to better manage potential threats around the clock.
Jack Henry & Associates Mergers and acquisitions (M&A) Activities
In July 2019 Jack Henry & Associates unveiled the acquisition of Geezeo, a Boston-based provider of retail and business digital financial management solutions. Founded in 2006, Geezeo has evolved from a white label PFM provider to a critical Fintech partner of financial institutions, core processors, and complementary digital banking solutions. By processing, augmenting and storing millions of transactions, Geezeo now occupies a key role with their clients as a critical data partner. Geezeo's open and user-centric Application Programming Interface (API) allows for flexible integration within most FIs' online and mobile banking environments. By integrating seamlessly and invisibly, financial institutions can maintain their brand's look and feel, creating differentiated digital banking experiences that translate into higher revenue opportunities and increased customer engagement.
In October 2018, Jack Henry & Associates acquired BOLTS Technologies, the Pennsylvania-based developer of boltsOPEN, a next-generation digital account opening solution.
The financial services industry is clearly focused on re-engineering the delivery of traditional financial services with digital solutions. As more and more businesses and consumers expect to conduct most of their transactions and interactions digitally, the demand for online and mobile account opening is strong and growing. To meet this demand, financial institutions need a next-generation solution that balances user experience, strong security, and self-service administration and customization.
boltsOPEN is a truly innovative account opening solution that diverse banks and credit unions need to meet the evolving expectations of their existing and prospective account holders. boltsOPEN enables existing and prospective account holders to open new accounts in minutes. It leverages a modern, responsive design to ensure an intuitive user experience on any device. Its sophisticated identity verification encompasses OFAC, customer identification program (CIP), and account abuse checks. Flexible account funding options include mobile deposits, ACH, and transfers from credit and debit accounts. With access to Jack Henry's resources and technical infrastructure, boltsOPEN has the opportunity to continue to innovate in the digital space.
Jack Henry & Associates Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Jack Henry & Associates applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Jack Henry & Associates and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified ProfitStars, customers.
Jack Henry & Associates Overview
Ownership: - NASDAQ : JKHY
Number of Employees: 6500
Key Verticals: Banking and Financial Services,
Jack Henry & Associates Key Cloud and HCM Applications
Jack Henry & Associates HCM and Cloud HCM Applications Revenues, $M:
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* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Jack Henry & Associates Revenue Breakdown by Type:
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Jack Henry & Associates Customers - Breakdown by Geo, Size, Vertical and Product
No. of Jack Henry & Associates Customers: 9000
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Jack Henry Digital unveiled that more than 300 banks and credit unions are leveraging the Banno Digital Platform to facilitate seamless digital experiences, digital account opening, and live, personal service within the digital channel. As of the end of June 2020, the platform has over 2.6 million monthly active users.
In May 2019, ProfitStars division unveiled that Damariscotta, Maine-based First National Bank has selected its Commercial Lending Center Suite to streamline processes and boost efficiencies with a more sophisticated approach to commercial lending. The $1.9 billion bank needed a digital commercial lending platform to reduce cumbersome paperwork and drive process efficiencies. ProfitStars' suite will automate workflows and offer advanced reporting to eliminate redundancies and enhance accountability across the bank's lending team, ultimately reducing loan turnaround time and increasing productivity. The platform will also allow the bank to introduce the modern conveniences borrowers expect – like online loan application and quick decisions without sacrificing the bank's personal, community-focused service.
Jack Henry delivers its solutions to more than 9,000 banks and credit unions nationwide through three business units: Jack Henry Banking, ProfitStars, and Symitar. Jack Henry Banking division, a provider of integrated data processing systems has more than 1,330 banks as clients. Its Symitar division, a provider of core data processing solutions for credit unions of all sizes has more than 750 customers. Its ProfitStars division, a provider of financial performance, imaging and payment processing, information security and risk management, retail delivery, and online and mobile solutions has approximately 11,000 domestic and international customers.
Among Jack Henry's customers are: First PREMIER Bank, Pacific National Bank, Rock Valley Credit Union, Freedom Credit Union, Shell Federal Credit Union, Florida Credit Union, Nassau Financial Federal Credit Union, First National Bank of Bastrop, Libertyville Savings Bank, DHCU Community Credit Union, The Summit Federal Credit Union, LowellBank, Northwest Federal Credit Union, Andrews Federal Credit Union, First Command Bank, Peach State Bank&Trust, Farmers State Bank, Community Choice Credit Union, American Airlines Federal Credit Union, First Community Bank.
Jack Henry & Associates Market Opportunities, M&A and Geo Expansions
In May 2020, Jack Henry Lending unveiled that Commonwealth Credit Union has selected the Commercial Lending Center Suite to automate the commercial lending process, boosting efficiencies and improving the experience for both its loan team and borrowers.
In October 2018, Jack Henry & Associates acquired Agiletics, a Florida-based company. Agiletics joins Jack Henry & Associates as part of Jack Henry Banking which supports banks, ranging from de novo to multi-billion-dollar institutions, with information and transaction processing solutions. Recognizing that ongoing, low-cost deposit growth is a strategic goal for most banks today, acquiring Agiletics and enhancing its product offering with its proven solutions generates new opportunities for its clients and the company.
Agiletics provides an array of solutions that help banks of all sizes gather commercial deposits by better serving their business customers and attracting new ones, and we are particularly excited about the near- and long-term benefits that Agiletics' automated escrow and investment management solutions will deliver.
Of the 750 credit union customers that Jack Henry keeps, close to 600 have assets above $75 million and 170 have assets below that mark. In both market segments, Jack Henry has more than 6,000 additional opportunities to sell into. By moving some from in-house legacy systems to the outsourced model has fueled the growth of Jack Henry in recent years. Its ability to accelerate the conversion strategy will depend on the pace of development underway to upgrade Episys and CruiseNet. The former is based on the IBM Power System platform for larger credit unions, while the latter is a Windows-based system for smaller operations.
Jack Henry & Associates also acquired Bayside Business Solutions, a provider of complete portfolio management systems for commercial lenders and provider of factoring software. The company will become a part of Jack Henry & Associates' ProfitStars Lending Solutions Group that continues to have a successful history of assisting bank partners with their commercial loan portfolio growth and diversification. Bayside's already strong market position in factoring technology through its FactorSoft solution became even stronger in the past three years with the development of CADENCE. CADENCE is a commercial portfolio management platform that supports a variety of commercial financing products (including the solution formerly branded as FactorSoft) ranging from factoring to all types of asset-based commercial loans.
Jack Henry & Associates Risks and Challenges
The decline in its license revenues in recent quarters – following flat license sales in its fiscal 2017 - underscores the challenge for Jack Henry as it slowly migrates to the Cloud.
Since 2005 Jack Henry has relied on its Profitstars division, which covers a range of imaging and payment, risk management and retail delivery solutions, to sustain its growth mitigating the effects of bank failures. Today Profitstars represent nearly 30% of Jack Henry’s total revenues, up from 7% in 2005.
The diversification moves have reshaped the company, following the acquisitions of 16 companies and some 9,000 new clients, many of whom are in the public sector, real estate, healthcare, utilities, and other verticals. On the other hand, the shift has diluted Jack Henry’s focus, which has been primarily selling into the community banking space since 1976.
Jack Henry & Associates Ecosystem, Partners, Resellers and SI
In June 2020, Jack Henry & Associates partnered with NuData Security, a Mastercard company, to enhance the Banno Digital Platform with behavioral security. As banks and credit unions move toward a more digital experience, it is increasingly critical to minimize risk by accurately identifying real end-users from fraudulent ones. The Banno Digital Platform now features behavioral technology to identify high-risk users in real-time during login. This technology, powered by NuData Security, is available to any financial institution leveraging the Banno Digital Platform, regardless of other card brand affiliations.
In August 2020, Lakeside Bank Partners with Jack Henry & Associates to Continue Community-First Approach While Driving Growth Through Digital Banking and Expanded Services.
Jack Henry primarily sells direct and it uses resellers on a selected basis. International sales account for less than one percent of Jack Henry’s total revenues in each of its past three fiscal years.
In March 2015, ProfitStars, Jack Henry & Associates's division partnered with PayNearMe through its Enterprise Payment Solutions group, to simplify cash payment acceptance.
Jack Henry & Associates Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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