Jack Henry's
2024 Strategy Benchmark offers insights into concerns,
opportunities, and technology priorities
MONETT,
Mo., April 29, 2024 /PRNewswire/
-- Growing deposits and increasing operational efficiency are
top priorities for community and regional financial institutions,
according to Jack Henry's
sixth-annual survey of bank and credit union CEOs.
"With rising deposit costs putting pressure on net interest
margins, banks and credit unions have greater urgency to enhance
operational efficiency, especially through back-office automation,"
said Lee Wetherington, Senior
Director of Jack Henry™ Corporate Strategy. "Whether your top
priority is growing deposits, improving efficiency, or preventing
real-time fraud, data strategy is now front and
center."
Jack Henry's 2024 Strategy
Benchmark showed that the vast majority (80%) of financial
institutions plan to increase technology spending over the next two
years. Fraud detection/mitigation, digital banking,
and data analytics top the list of planned investments.
"Given escalating cyber and fraud threats, it's no
surprise that both banks and credit unions are making substantial
investments in detection and mitigation," said Jennifer Geis, Senior Analyst of Jack Henry
Corporate Strategy. "Social engineering is the top cybersecurity
concern while check fraud continues to be the top
fraud threat."
Other key findings:
- 78% plan to expand services for small businesses
with payments, business credit/lending, and merchant services
topping the list of planned offerings.
- 97% plan to enhance lending solutions in the next two
years, but top priorities diverge sharply between banks and
credit unions. Banks are focused on automated workflow and
custom/automated financial spreading while credit unions are
focused on underwriting using artificial intelligence (AI) and
automated prequalification campaigns.
- 96% plan to add payment services, with
FedNow® Service being the top priority for both banks
and credit unions.
- 92% plan to embed fintech into their digital banking
experiences with the majority planning to embed payments fintechs.
Credit unions are also looking to embed consumer financial health
and digital marketing fintechs while banks are looking to fintechs
for help with small-business services and treasury management.
The study's results are based on an online survey conducted in
January and February 2024
representing a diverse sample of Jack
Henry core clients with assets ranging from less than
$500 million to more than
$10 billion. Download the eBook to
learn more.
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 47 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 8,000 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.
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SOURCE Jack Henry &
Associates, Inc.