Core provider Jack Henry plans to add support for digital currency via its Banno Digital Platform.

Support for digital currency and treasury management will be the “key priority” for the upcoming fiscal year, Stacey Zengel, senior vice president of Jack Henry and Associates and president of Jack Henry Banking, told Bank Automation News.

“Right now, what’s happening to some banks is they see funds being swept out of the bank to investment brokers, where people are wanting to invest in digital currency,” said Zengel. “We plan to offer that kind of capability to where, instead of the bank getting the funds swept out nothing back from that transaction, we’re looking at a way that they might be able to get something back from the transaction.”

That would mean being able to invest in Bitcoin and other digital currencies. Banks would be able to wire the funds to a digital currency platform and add a transaction fee for the investment, he explained. This will likely be accomplished through Jack Henry’s Banno Digital Platform application, which leverages an open architecture with APIs that connect to third-party fintechs. Zengel said other core providers are also moving in this direction.

Customers may soon be able to see Bitcoin and other digital currency investments alongside their other bank account, Shuki Licht, chief innovation officer at Finastra, told BAN. “Banks have been asking us about integrating digital currencies into their platform,” he added.

Jack Henry also offers its own treasury management solution and it continues to invest in this technology, Zengel noted. Company CFOs want to do advanced sweeps, with cash management functionality and reporting around that. And large banks have done quite well managing commercial accounts through treasury management, he added.

“It’s basically something that banks would want to offer their customers that are their premier customers that do a lot of ACH capability, ACH, a lot of advanced wires, advanced sweeps, those kinds of functions, “ Zengel said. “What we’re doing is really pouring the coals to that solution, taking it into the community banking sector, so that our customers can use it.”

BAN Associate Editor Jaspreet Kalra contributed to this report.

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