Jack Henry, payment processing provider for the financial services industry, integrates with Finicity, Akoya, Plaid

Jack Henry & Associates, Inc. (NASDAQ: JKHY), a provider of technology solutions and payment processing services to the financial services industry, announced on October 12, 2021 that Finicity, Akoya and Plaid are among the first Open Banking platforms to integrate to Banno digital platform using the Banno Digital ToolkitSM.

This provides a high level of security, privacy and transparency to the nearly 6 million customers who bank with the Banno digital platform by eliminating screen scratching. Consumers now have access to “a complete financial picture through their financial institution, without having to provide identifying information to third parties at the risk of their own privacy.”

As stated in a press release:

“Instead, these integrations allow consumers to grant permission, as well as the ability to revoke it later, to data they want to share with third parties through their financial institution. This translates into a more secure connection, a better user experience and, ultimately, peace of mind for the consumer.

Ben Metz, head of digital at Jack Henry, added that they aim to ensure that community financial institutions are “prepared for the future.” So we’ve provided a platform that attracts modern fintechs and services that financial institutions can use to build their own ecosystems to better serve their account holders.

Metz also mentioned:

“We believe we are setting a precedent for the industry by doing everything possible to encourage better security, privacy, openness and collaboration. This is really what community banks and credit unions need to stay at the center of financial transactions.

With the Banno digital toolkit, financial institutions are able to leverage the same API layer as the Banno digital platform to “build and customize their own integrated fintech solutions”.

The release further states that Jack Henry provides “a growing library of popular financial services applications fully integrated with the Banno platform, enabling clients of Jack Henry’s financial institutions to have fast, secure and on-demand access. to these fintech solutions “.

The Banno Digital Toolkit is “better than a traditional SDK (software development kit) because it offers endless possibilities for innovation and total efficiency through a fully integrated back-office support system,” notes the update.

It strengthens customer engagement and loyalty “through a seamless, fully branded and integrated digital banking experience”. No competitor provides “this level of integration without any development work required for financial institutions and fintechs,” says Jack Henry’s team.

Integrations include:

  • Finicity, a Mastercard company, “enables consumers and businesses to connect and authorize the use of their financial data across a wide range of financial services and applications, transforming their experience of money, from budgeting to and payments for investments and loans. The company “reaches over 95% of direct deposit accounts in the United States”
  • Akoya offers financial institutions a scalable way to “provide their customers with API-based data access and consent authorization tools by eliminating the need to develop and manage multiple API relationships with fintechs and data aggregators “. Akoya has relationships “with many of America’s largest financial institutions, and Jack Henry is the first leading vendor and open digital banking platform to join the Akoya Data Access Network.”
  • Plaid helps people “securely connect their financial accounts to over 5,500 applications, with a network that includes over 11,000 financial institutions.” The Plaid Exchange API solution helps “power digital finance experiences on behalf of hundreds of institutions”.

Mark Schwanhausser, director of digital banking at Javelin Strategy & Research, adds:

“Success in banking depends on a bold and proactive approach to data. Innovative financial institutions will allow customers to share them, show how to protect them and prove day after day that they collect data to help customers be more confident and manage their money better. Banks and credit unions that do it right will be rewarded by transforming weak self-guided transactional relationships into lasting relationships guided by banks and focused on advice. “

Metz also noted:

“The applications provided by Finicity, Akoya and Plaid are part of our financial landscape; businesses and consumers use them, and it’s up to us to integrate these services into the ecosystems of community banks and credit unions. This allows them to strengthen customer relationships while competing on a level playing field with big banks, big techs and neobanks. By organizing and bringing together relevant digital banking experiences, we create a sustainable environment that attracts leading fintechs and fosters innovation.

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