Jack Henry & Associates, Inc. operates as a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve.
The company provides technology solutions to help banks and credit unions innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. The company empowers approximately 7,500 financial institutions and diverse corporate entities with people-i...
Jack Henry & Associates, Inc. operates as a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve.
The company provides technology solutions to help banks and credit unions innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. The company empowers approximately 7,500 financial institutions and diverse corporate entities with people-inspired innovation, personal service, and insight-driven solutions.
The company provides products and services primarily to community and regional financial institutions:
Core bank integrated data processing systems are provided to over 940 banks. The company's banking solutions support both on-premise and private cloud operating environments with functionality for core processing platforms and integrated complementary solutions.
Core credit union data processing solutions are provided to credit unions of all sizes, with a client base of approximately 720 credit unions. The company offers a flagship core processing platform and integrated complementary solutions that support both on-premise and private cloud operating environments.
Non-core highly specialized core-agnostic products and services are also provided to financial institutions. The company offers complementary solutions that include highly specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile functionality. These products and services enhance the performance of traditional financial services organizations of all asset sizes and charters, and non-traditional diverse corporate entities. In total, the company serves over 1,660 bank and credit union core clients and over 5,870 non-core clients.
The company's products and services provide its clients with solutions that can be tailored to support their unique growth, service, operational, and performance goals. The company's well-rounded solutions also enable financial institutions to offer the high-demand products and services required by their accountholders to compete more successfully and to capitalize on evolving trends shaping the financial services industry.
The company is committed to exceeding its clients' expectations. The company measures and monitors their satisfaction using a variety of surveys, such as an annual survey on the client's anniversary date and randomly-generated online surveys initiated each day by routine support requests to ensure feedback is received throughout the year. The survey results are analyzed and provided to operational areas to ensure the company's service consistently exceeds its clients' expectations.
The company focuses on establishing long-term client relationships, continually expanding and strengthening those relationships. The company does so with cross sales of additional products and services that support its clients' strategy, earning new financial and non-financial clients, and ensuring its product offerings are highly competitive.
The majority of the company's support and services revenue is derived from its private and public cloud services for its hosted clients that are typically on a six-year contract, recurring electronic payment solutions that are generally on a contract term of six years, and the company's on-premise clients that are typically on a one-year contract. Less predictable software license fees, paid by clients implementing the company's software solutions on-premise, and hardware sales, including all non-software products that the company re-markets in order to support its software systems, complement its primary revenue sources.
Business Strategy
The company's fundamental business strategy is to generate organic revenue and earnings growth augmented by strategic acquisitions. The company executes this strategy by:
Providing community and regional financial institutions with core processing systems that provide excellent functionality and support on-premise and private cloud delivery environments with identical functionality.
Expanding each core client relationship by cross-selling complementary/payment products and services that enhance the functionality provided by the company's core processing systems.
Delivering non-core highly specialized core-agnostic complementary/payment products and services to financial institutions, including institutions not utilizing one of the company's core processing systems, and diverse corporate entities.
Developing and deploying a long-term technology modernization strategy to provide public cloud-native solutions that provide clients with greater flexibility, optionality, open integration, speed to market, and other benefits.
Upholding a company-wide commitment to service that consistently exceeds the company's clients' expectations and generates high levels of retention.
Building, maintaining, and enhancing a protected environment and tools that help the company's clients and Jack Henry protect accountholder data, assets, and comply with regulations.
Maintaining a disciplined acquisition strategy.
Solutions
The company's core banking solutions support commercial banks with information and transaction processing platforms that provide enterprise-wide automation. The company has three functionally distinct core bank processing systems and more than 140 fully integrated complementary/payment solutions, including business intelligence and bank management, retail and business banking, digital and mobile internet banking and electronic payment solutions, fraud and risk management and protection, account origination, and item and document imaging solutions. The company's core banking solutions have state-of-the-art functional capabilities, and it can re-market the hardware required by on-premise use of each software system. The company's banking solutions can be delivered on-premise or through its private cloud delivery model and are backed by a company-wide commitment to provide exceptional client support.
The company's core credit union solutions support credit unions of all sizes with an information and transaction processing platform that provides enterprise-wide automation. The company's solution includes one flagship core processing system and more than 100 fully integrated complementary/payment solutions, including business intelligence and credit union management, member and member business services, digital and mobile internet banking and electronic payment solutions, fraud and risk management and protection, account origination, and item and document imaging solutions. The company's credit union solution also has state-of-the-art functional capabilities. The company also re-markets the hardware required by on-premise use of the software system. The company's credit union solution can be delivered on-premise, through its private cloud, or through its partner private cloud delivery models. Each is backed by its company-wide commitment to provide exceptional client support.
The company's non-core solutions for financial institutions and diverse corporate entities are specialized products and services assembled primarily through its focused diversification acquisition strategy. These core-agnostic solutions are compatible with a wide variety of information technology platforms and operating environments and offer more than 100 complementary/payment solutions, including proven solutions for generating additional revenue and growth, increasing security and mitigating operational risks, and/or controlling operating costs. The company's non-core products and services enhance the performance of financial services organizations of all asset sizes and charters, and diverse corporate entities. These distinct products and services can be implemented individually or as solution suites to address specific business problems or needs and enable effective responses to dynamic industry trends.
The company is committed to developing and maintaining modern and integrated solutions supported by high service levels. The company continuously updates and improves these solutions through an interactive client enhancement process, ensuring compliance with relevant regulations, and incorporating proven advances in technology.
Core Software Systems
Core software systems primarily consist of the integrated applications required to process deposit, loan, and general ledger transactions, and to maintain centralized customer/member information.
The company's core banking solutions consist of three software systems marketed to banks, and its core credit union solution consists of one software system marketed to credit unions. These core systems are available for on-premise installation at client sites, or financial institutions can choose to leverage the company's private cloud environment for ongoing information processing.
Core banking platforms are:
SilverLake System, a robust system primarily designed for commercial-focused banks that serves banks with assets ranging from $1 billion to $50 billion. Some progressive smaller banks and de novo (start-up) banks also select SilverLake. This system is in use by approximately 490 banks, and serves nearly 11% of the domestic banks with assets less than $50 billion.
CIF 20/20, a parameter-driven, easy-to-use system that supports approximately 280 banks ranging from de novo institutions to those with assets of $5 billion.
Core Director, a cost-efficient system with point-and-click operation that supports over 170 banks ranging from de novo institutions to those with assets of over $2 billion.
Core credit union platform is:
Symitar (formerly known as Episys), a robust system designed specifically for credit unions. It has been implemented by approximately 720 credit unions with assets ranging from $20 million to $30 billion, and according to National Credit Union Administration (NCUA) data, is the system implemented by more credit unions with assets exceeding $25 million than any other core system.
Clients electing to install the company's solutions on-premise license the proprietary software systems. The majority of these clients pay ongoing annual software maintenance fees. The company re-markets the hardware, hardware maintenance, and peripheral equipment that is required by on-premise use of its software solutions; and it performs software implementation, data conversion, training, ongoing support, and other related services. On-premise clients generally license the company's core software systems under a standard license agreement that provides a fully paid, nonexclusive, nontransferable right to use the software on a single computer at a single location.
Clients can eliminate the significant up-front capital expenditures required by on-premise installations and the responsibility for operating information and transaction processing infrastructures by leveraging the company's private cloud environment for those functions. The company's core private cloud services are provided through a highly resilient data center configuration across multiple physical locations. The company also provides image item processing services from two host/archive sites and several key entry and balancing locations throughout the country. The company prints and mails customer/member statements for financial institutions from three regional printing and rendering centers. Clients electing to outsource their core processing typically sign contracts for six years that include 'per account' fees and minimum guaranteed payments during the contract period.
The company is dedicated to meeting the evolving business needs of its core bank and credit union clients by continuously enhancing each core system, introducing new integrated complementary products regularly, integrating practical new technologies, and adhering to regulatory compliance initiatives. Additionally, the company serves as a single point of contact for each core client for support and accountability.
Complementary Products and Services
The company has more than 140 complementary/payment products and services that are targeted to its core banks and more than 100 targeted to credit unions. Many of these are selectively sold to financial institutions that use other core processing systems.
These complementary/payment solutions enable core bank and credit union clients to respond to evolving customer/member demands, expedite speed-to-market with competitive offerings, increase efficiency, address specific operational needs, and generate new revenue streams. The highly specialized solutions enable diverse financial institutions and corporate entities to generate additional revenue and growth opportunities, increase security, mitigate operational risks, and control operating costs.
The company regularly introduces new products and services based on demand for integrated complementary/payment solutions from its existing core clients and based on the growing demand among financial institutions and corporate entities for specialized solutions capable of increasing revenue and growth opportunities, mitigating and controlling operational risks, and/or containing costs. The company's Industry Research department solicits client guidance on the business solutions they need, evaluates available solutions and competitive offerings, and manages the introduction of new product offerings. The company's new complementary/payment products and services are developed internally, acquired, or provided through strategic alliances.
Implementation and Training
Most of the company's core bank and credit union clients contract with it for implementation and training services in connection with their systems and additional complementary products.
A complete core system implementation typically includes detailed planning, project management, data conversion, and testing. The company's experienced implementation teams travel to client facilities or work remotely with clients to help manage the implementation process and ensure that all data is transferred from the legacy system to the Jack Henry system. The company's implementation fees are fixed or hourly based on the core system being installed.
The company also provides extensive initial and ongoing education to its clients. The company has a comprehensive training program that supports new clients with basic training and longtime clients with continuing education. The training enables financial institutions to maximize the use of the company's core and complementary solutions, learn about ongoing system enhancements, and understand evolving legislative and regulatory requirements.
Support and Services
The company serve its core clients as a single point of contact and support for the complex solutions it provides. The company's comprehensive support infrastructure incorporates: high service standards; trained support staff available up to 24 hours a day, 365 days a year; assigned account managers; sophisticated support tools, resources, and technology; broad experience converting diverse banks and credit unions to the company's core platforms from competitive platforms; highly effective change management and control processes; and best practices methodology developed and refined through the company-wide, day-to-day experience.
Hardware Systems
The company's software systems operate on a variety of hardware platforms. The company has established remarketing agreements with IBM Corporation, and many other hardware providers that allow Jack Henry to purchase hardware and related maintenance services at a discount and resell them directly to the company's clients. The company sells IBM Power Systems; Lenovo, Dell, Hewlett Packard Enterprise, and Cisco servers and workstations; Canon, Digital Check, Epson, and Panini check scanners; and other devices that complement its software solutions.
Digital Products and Services
Jack Henry Digital represents a category of digital products and services that are being built and integrated together into one unified platform. The company's main offering is the Banno Digital Platform. It is an online and mobile banking platform that helps community and regional financial institutions strategically differentiate their digital offerings from those of megabanks and other financial technology companies. It is a complete, open digital banking platform that gives banks and credit unions attractive, fast, cloud-native applications for their customers and members and cloud-based, core-connected back-office tools for their employees.
Payment Solutions
Electronic payment solutions provide the company's clients with the tools necessary to be at the forefront of payment innovation with secure payment processing designed to simplify complex payment processing, attract profitable retail and commercial accounts, increase operating efficiencies, comply with regulatory mandates, and proactively mitigate and manage payment-related risk.
JHA Card Processing Solutions (CPS) supports full-service and in-house debit and credit card programs, as well as an Agent credit option, backed by a comprehensive suite of tools for 24/7 fraud mitigation, digital payments, full-service dispute management, plastics manufacturing and personalization, loyalty programs, data analytics, and ATM terminal driving. In addition, advisory services are offered to support a variety of needs including card portfolio growth, start-up program consultation, as well as customized fraud management; all tailored to individual financial institution goals and concerns.
Enterprise Payment Solutions (EPS) is a comprehensive payments engine, offering an integrated suite of remote deposit capture, Automated Clearing House (ACH) and card transaction processing solutions, supporting tools for accounts receivable posting, risk management, reporting, and application interfaces (APIs) for financial institutions, businesses, and fintechs of all sizes. EPS helps clients succeed in today's competitive market to increase revenue, improve efficiencies, better manage compliance, and enhance customer and member relationships.
Payrailz Payments Platform provides consumers and businesses with money movement options through their financial institutions' digital platforms. It supports the company's technology modernization strategy by providing next-generation, cloud-native digital payment capabilities to its payment ecosystem. This money movement payments platform incorporates artificial intelligence (AI) to make predictive and proactive recommendations, a flexible modern user experience, a layered security model, an automated fraud feature powered by machine learning, and a contemporary, adaptable administrative portal. In addition to bill payment capabilities, the company provides a 'pay a loan' feature, an 'open looped' real-time person-to-person (P2P) solution, and account-to-account (A2A) transfer features. The array of money movement options maintains consumer and business engagement with the financial institution.
JHA PayCenter, provides financial institutions with a single entry point to both Zelle and Real Time Payments (RTP) networks, and the Federal Reserve's FedNow network. PayCenter manages the certification process and mandatory updates from the networks, simplifies integration with toolkits, and provides fraud monitoring. Financial institutions can send and receive transactions instantly 24 hours a day, 365 days a year, through the company's core and complementary solutions.
Payments as a Service (PaaS) ties together and further enhances the complete array of electronic payments functionality with a front-end Payments Developers Experience Portal, APIs, and back-end data analytics.
Research and Development
The company's research and development expenses were $148,256 for the year ended June 30, 2024.
Sales and Marketing
The company serves established, well-defined markets that provide ongoing sales and cross-sell opportunities.
The marketing and sales initiatives within the core business lines are primarily focused on identifying banks and credit unions evaluating alternative core information and transaction processing solutions. The company's non-core specialized core-agnostic niche solutions are sold to complement existing technology platforms to financial services organizations of all asset sizes and charters.
Sales executives are responsible for the activities required to earn new clients in assigned territories, and regional account executives are responsible for nurturing client relationships and cross selling additional products and services. The company's sales professionals receive base salaries and performance-based commission compensation. Sales support staff provide a variety of services, including product and service demonstrations, responses to prospect-issued requests-for-proposals, and proposal and contract generation. The company's marketing department supports sales with lead generation and brand-building activities, including participation in state-specific, regional, and national trade shows; print and online advertising; telemarketing; client newsletters; ongoing promotional campaigns; and media relations. The company also hosts annual national education conferences, which provide opportunities to network with existing clients and demonstrate new products and services.
The company has sold select products and services outside the United States, primarily in Latin America, the Caribbean and Canada.
Intellectual Property, Patents, and Trademarks
The company's compliance program is coordinated by a team of qualified compliance analysts and auditors with extensive regulatory agency and financial institution experience, knowledge and understanding of Federal consumer protection regulations, and a thorough working knowledge of the company and its solutions. These compliance professionals leverage multiple channels to remain informed about potential and recently enacted regulatory requirements, including regular discussions on emerging topics with the Federal Banking Agencies (FBA) examination team and training sessions sponsored by various professional associations.
Competition
The company's core solutions compete with large vendors that provide information and transaction processing solutions to banks and credit unions, including Fidelity National Information Services, Inc.; Fiserv, Inc.; Corelation, Inc.; and Finastra.
Government Regulation
The company's products and services must comply with the extensive and evolving regulatory requirements applicable to its clients, including but not limited to those mandated by federal truth-in-lending and truth-in-savings rules, the Privacy of Consumer Financial Information regulations, usury laws, the Equal Credit Opportunity Act, the Fair Housing Act, the Electronic Funds Transfer Act, the Fair Credit Reporting Act, the Bank Secrecy Act, the USA Patriot Act, the Gramm-Leach-Bliley Act, the Community Reinvestment Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The company's operations are governed by the same regulatory requirements as those imposed on financial institutions, and subject to periodic reviews by FBA regulators who have broad supervisory authority to remedy any shortcomings identified in such reviews.
The company provides private cloud services through JHA OutLink Processing Services for banks and EASE Processing Services for credit unions. The company provides data centers and electronic transaction processing through JHA Card Processing Solutions, internet banking through NetTeller and Banno online solutions, bill payment through the company's Payrailz Payments Platform, network security monitoring and Hosted Network Solutions (HNS) through the company's Gladiator unit, cloud services through Hosted Partner Services and Enterprise Integration Services, and business recovery services through Centurion Disaster Recovery.
The company's private cloud services are subject to examination by FBA regulators under the Bank Service Company Act.
History
Jack Henry & Associates, Inc. was founded in 1976. The company was incorporated in 1985.
