Jack Henry updated its tech modernization strategy during its fiscal second quarter, the technology provider announced during its earnings call today.
“This strategy is changing how we deliver our solutions through a cloud-native, API-first environment, using several key benefits embedded in the Google Cloud platform, including cutting-edge security and business continuity advancements,” Chief Operating Officer Greg Adelson said on the call.
The cloud-native platform allows for easy integration of services and solutions across the Jack Henry platform and third-party fintechs will also be able to plug into the cloud-native platform, Adelson said.
“Clients will be able to access everything they need to run their financial institution on a single platform with all the advantages that the cloud offers,” he said.
BIGGER PICTURE: Continuing with its cloud strategy, Jack Henry on Jan. 25 introduced its new cloud-native business banking solution, Banno Business.
The solution packages cash management, payments and commercial lending into one platform, according to a release.
The solution is already being utilized by the $687 million, Chandler, Ariz.-based First Credit Union.
By the end of its fiscal 2024, which will end June 30, Jack Henry also plans to roll out its Financial Crimes Defender along with other payment solutions, Adelson said.
BY THE NUMBERS: Jack Henry reported during the quarter, which ended Dec. 31, 2023:
- Total revenue increased 8% year over year to $545,701; and
- Operating expenses grew 7.2% YoY to $426,734.
TRANSACTIONS: The following financial institutions are using Jack Henry’s technology to enhance their own digital capabilities:
- $564 million, Chicago-based First Eagle Bank;
- $513 million, Marquette, Mich.-based Embers Credit Union;
- $2.1 billion, Gahanna, Ohio-based Kemba Financial Credit Union; and
- $4.1 billion, Manitowoc, Wis.-based Bank First.
NOTEWORTHY: Adelson, Jack Henry’s current chief operating officer, was named as the company’s new chief executive in January, his new role will be effective July 1, according to a Jan. 22 Jack Henry release.
Current CEO David Foss is set to retire on June 30 and step into the position of executive board chair, according to the release.
During his 25 years at Jack Henry, Foss led 26 acquisitions, Adelson said during today’s call. “The legacy Dave is leaving will be remembered for many years to come,” he said.
[stock_market_widget type=”inline” template=”generic” assets=”JKHY” markup=”{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}” api=”yf”].
Get ready for Bank Automation Summit U.S. 2024 in Nashville, Tenn., on March 18-19! Discover the latest advancements in AI and automation in banking. Register now.
