Jack Henry (JKHY) Boosts Clientele With Copper State Tie-Up

Jack Henry JKHY continues to experience strong customer momentum on the back of its robust technology solutions.

Notably, Copper State Credit Union partnered with Jack Henry to integrate the latter's single technology platform into its operations.

Further, Copper State Credit Union will leverage JKHY’s open infrastructure to create a new digital banking platform that will provide a comprehensive view of members' finances, enable instant payments, manage credit scores and protect their data.

The latest collaboration has added strength to Jack Henry’s customer base.

Jack Henry & Associates, Inc. Price and Consensus

Jack Henry & Associates, Inc. Price and Consensus

Jack Henry & Associates, Inc. price-consensus-chart | Jack Henry & Associates, Inc. Quote

Expanding Clientele

Apart from Copper State Credit Union, the company recently collaborated with the Independent Community Bankers of America (ICBA), offering the latter a few JKHY solutions, namely Banno Business, JHA SmartPay Remote Deposit Now, Synergy Document Management, and Centurion Data Backup and Recovery.

This partnership will enable ICBA to leverage JKHY’s robust solutions to enhance community banks' digital banking experiences, simplify remote deposit capture, centralize data and improve disaster recovery processes for small-to-medium businesses.

Further, Jack Henry partnered with Legacy Bank & Trust to upgrade the latter’s technology stack, utilizing Jack Henry's SilverLake hosted core processing solution, enhancing operational efficiency, improving branch communication and standardizing compliance processes.

The company also expanded its customer base with the Pinwheel partnership. This partnership allowed Pinwheel to leverage Jack Henry’s digital banking platform, Banno Digital Platform, to make its direct deposit switching solutions accessible across financial institutions.

Pinwheel also used Jack Henry's API, design and authenticated frameworks to integrate its technology into the community and regional financial institutions' digital experiences, enhancing the banking experience.

Portfolio Strength: Key Catalyst

Jack Henry is leaving no stone unturned to strengthen its overall portfolio in order to sustain its customer momentum.

Notably, the company introduced Banno Business, a solution that enables community and regional financial institutions to provide modern banking experiences for small-to-medium businesses (SMBs).

Further, Banno Business equips community banks and credit unions with digital tools to support SMBs, offering solutions like cash management, payments and commercial lending and integrating external accounts with Mastercard for comprehensive financial management.

The company’s launch of Payrailz Fraud Monitor, an AI-based feature that provides real-time fraud detection during payment transactions, remains noteworthy.

The feature supports P2P, bill payments and A2A outbound transfers. It uses AI and machine learning to detect and weigh multiple fraud attributes, generate actionable scores and mitigate payment fraud, including account takeover, by continuously learning and detecting emerging patterns.

All the above-mentioned endeavors to bolster its portfolio strength will likely aid Jack Henry in strengthening its overall financial performance in the upcoming period.

For fiscal 2024, Jack Henry expects GAAP revenues in the band of $2.215-$2.228 billion. The Zacks Consensus Estimate for the same is pegged at $2.22 billion, implying year-over-year growth of 6.9%.

However, rising headcounts and personnel costs remain concerns for the company. Its shares have gained 5.2% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 11.7%.

Zacks Rank & Other Stocks to Consider

Currently, Jack Henry carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector are Airbnb ABNB, Badger Meter BMI and AMETEK AME, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Airbnb have gained 23.5% in the year-to-date period. The long-term earnings growth rate for ABNB is 16.85%.

Shares of Badger Meter have increased 3% in the year-to-date period. The long-term earnings growth rate for BMI is 12.27%.

Shares of AMETEK have gained 12.1% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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