Jack Henry Banking Continues Outsourcing Migration Trend among Existing Core Clients
- Twenty-five banks chose to move from in-house processing to outsourcing during fiscal year 2014 -
MONETT, Mo., Oct. 14, 2014 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its Jack Henry Banking® division announced today that 25 of its currently supported core bank customers chose to migrate from in-house processing to its outsourced offering, JHA OutLink Processing Services™ (JHA OPS), during fiscal year 2014; which compares to approximately the same number of bank customers to make this decision the previous four years.
JHA OPS provides more than 600 banks across three core processing platforms – SilverLake System®, CIF 20/20® and Core Director® – with turnkey outsourcing solutions. Banks are served through strategically located data centers and image-enabled item processing centers and receive on-demand access to more than 140 integrated complementary products and services. Damariscotta, Maine-based The First Bancorp and Univest Corporation in Souderton, Pa. are two institutions that elected to eliminate the capital expenditures required for in-house processing and migrate to an outsourced environment.
The First Bancorp was facing two paramount challenges: updating its IBM hardware and shoring up disaster recovery processes to meet regulatory requirements, both of which carried significant costs. To help ensure compliance and reduce expenses, the $1.5 billion bank moved its SilverLake System core platform to JHA OPS.
According to Tony McKim, president and chief operating officer of The First Bancorp, "Outsourcing solved two significant problems for our bank and was an easy decision once we saw the resources that would be saved. Relying on the Jack Henry team's expertise allows us to turn our attention away from technology maintenance and back to serving our customers. The flexibility and scalability of outsourcing provides our customers with a better experience while the bank sees tangible savings as we dedicate less time and money to hardware updates, end-of-day processing and software releases."
For $2.2 billion Univest Corporation, outsourcing was seen as the most effective way to address succession planning issues after more than 18 years of in-house processing. Eric Conner, chief technology officer and EVP of Univest, said, "Turning our system management over to Jack Henry Banking has helped us avoid the issues that arise when 35-year bank veterans retire and take irreplaceable system knowledge with them. In addition, outsourcing helped us address regulatory pressure related to disaster recovery while providing us with security assurance that we could never produce on our own. The benefits of outsourcing have been beyond expectation and will enable us to continue our aggressive growth strategy with more predictable IT costs, material technology enhancements, a more integrated operating environment and expert technology management."
Stan Viner, general manager of sales for Jack Henry Banking, said, "We continue to see banks ranging from community banks to multibillion dollar mid-tier institutions like The First Bancorp and Univest take advantage of the value provided by JHA OutLink Processing Services. As these institutions face a tougher competitive landscape, increased regulatory pressure and more demand from consumers for cutting-edge technology, it is important that they can rely on a trusted partner like Jack Henry Banking to manage their technology so they can remain focused on their business and their customers. Through our extensive network of data centers, image-enabled item processing centers, training centers, and disaster recovery hot sites, we are able to offer highly customized outsourcing services that support the dynamic business strategies and growth goals of diverse banks nationwide."
About Jack Henry Banking
Jack Henry Banking, a division of Jack Henry & Associates, Inc., is a leading provider of integrated computer systems for banks ranging from de novo to mid-tier institutions. Jack Henry Banking currently serves more than 1,300 banks as a single source for integrated, enterprise-wide automation and as a single point of contact and support. Additional information is available at www.jackhenrybanking.com.
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc. ® (NASDAQ: JKHY) is a leading provider of computer systems and electronic payment solutions primarily for financial services organizations. Its technology solutions serve more than 11,300 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community to mid-tier institutions with information processing solutions. Symitar® is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides best-of-breed solutions that enhance the performance of domestic and international financial institutions of all asset sizes and charters using any core processing system, as well as diverse corporate entities. Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.
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SOURCE Jack Henry & Associates, Inc.
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