Alliance will enable community and
regional financial institutions to offer enhanced payments to SMBs
and capture deposits
MONETT,
Mo., Sept. 3, 2024 /PRNewswire/ -- Jack Henry™
(Nasdaq: JKHY) announced today a collaboration with Moov, a modern
digital payments processor, to enable community and regional
financial institutions to offer enhanced digital payment services
to small and medium-sized business (SMB) customers.
The cloud-native service will allow SMBs to accept payments with
the tap of a phone, receive same-day funds for payments accepted,
and automate reconciliations to accounting software packages. The
service will be offered through financial institutions, enabling
them to more fully serve their business clients' deposit and
payments needs.
"This innovation is made possible by our technology
modernization strategy to offer community and regional financial
institutions cloud-native, API-first services that allow them to
differentiate strategically, compete successfully, and meet the
evolving needs of their customers," said Jack Henry President and CEO Greg Adelson. "We are pleased to collaborate
with Moov on this unique solution that will provide modern,
innovative business payment capabilities to our clients that are
seamlessly integrated with deposit and core banking services."
Jack Henry Chief Technology
Officer Ben Metz said small
businesses typically have multiple relationships with banks and
fintechs to serve their specialized needs, resulting in
inefficiencies, increased costs, and integration issues.
"This service will reduce fragmentation and place community
banks and credit unions at the center of the relationship," Metz
said. "It also will help financial institutions capture SMB
deposits, which tend to be significantly higher than retail
deposits. This is especially compelling, as our clients have
identified growing deposits as their top strategic priority."
There are approximately 33.3 million small businesses in the
U.S., making up 99.9% of all U.S. firms, according to the Small
Business Administration. A Datos Insights 2023 survey shows that
56% of small businesses bank with one of the largest four banks,
while only 18% bank at a small financial institution.
Banks and credit unions are increasing their focus on small
businesses. In Jack Henry's 2024
Strategy Benchmark Survey, 78% of clients said they planned to
expand their small business capabilities over the next two years.
Of those clients, nearly seven out of 10 cited payments as the SMB
service they planned to add.
Wade Arnold, co-founder of Moov,
said the digital payments solution will enhance the ability for
community and regional financial institutions to serve small
business customers and simplify the experience for SMBs.
"We look forward to working with Jack
Henry to modernize payments for SMBs through community and
regional financial institutions," Arnold said. "This solution will
provide many benefits to SMBs, including one-click enrollment,
automated itemized transaction processing and reconciliation,
instant balance transfers from linked accounts to cover same-day
transaction needs, and an integrated payment relationship with the
financial institution."
Jack Henry and Moov are working
toward a multi-phased approach with beta testing expected to begin
by mid-2025. Jack Henry will share
more information about the solution at its 2024 Investor Day on
Thursday, Sept. 5 beginning at
2 p.m. ET. A live audio broadcast and
presentation materials will be accessible from Jack Henry's Investor Relations website, and a
replay will be available after the event.
About Moov
Moov is a new kind of payment processor,
built from scratch in the cloud to make payments easier for
developers & businesses. With Moov, businesses accept, store,
send, and spend money — all through one simple integration. Moov is
driven by a give-first mindset and supports a thriving network of
developers with open-source libraries and a growing community.
Discover how Moov can transform your payment operations at
moov.io.
About Jack Henry &
Associates, Inc.®
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology
company that strengthens connections between financial institutions
and the people and businesses they serve. We are an S&P 500
company that prioritizes openness, collaboration, and user
centricity – offering banks and credit unions a vibrant ecosystem
of internally developed modern capabilities as well as the ability
to integrate with leading fintechs. For more than 48 years,
Jack Henry has provided technology
solutions to enable clients to innovate faster, strategically
differentiate, and successfully compete while serving the evolving
needs of their accountholders. We empower approximately 7,500
clients with people-inspired innovation, personal service, and
insight-driven solutions that help reduce the barriers to financial
health. Additional information is available at
www.jackhenry.com.
Statements made in this news release that are not historical
facts are "forward-looking statements." Because forward-looking
statements relate to the future, they are subject to inherent risks
and uncertainties that could cause actual results to differ
materially from those expressed or implied by such statements. Such
risks and uncertainties include, but are not limited to, those
discussed in the Company's Securities and Exchange Commission
filings, including the Company's most recent reports on Form 10-K
and Form 10-Q, particularly under the heading "Risk Factors." Any
forward-looking statement made in this news release speaks only as
of the date of the news release, and the Company expressly
disclaims any obligation to publicly update or revise any
forward-looking statement, whether because of new information,
future events or otherwise.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/jack-henry-and-moov-to-simplify-digital-payments-for-small-businesses-302236693.html
SOURCE Jack Henry &
Associates, Inc.