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Jack Henry (JKHY) Adds Latest Features to PPP Loan Solution

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Jack Henry & Associates, Inc. (JKHY - Free Report) is putting strong efforts to support businesses affected by the ongoing pandemic on the back of its advancing technology solutions for financial institutions.

This is evident from the company’s latest move of adding a borrower-facing digital interface to its Paycheck Protection Program (PPP) loan solution. Along with this, it has added a broker option to the solution.

With the new interface, Jack Henry strives to aid small businesses seeking loans in uploading their information online seamlessly.

Further, the broker option is for helping the institutions in making decisions seamlessly by allowing them to accept loan requests online.

After the institutions decide whom to refer PPP, the loan will get funded free of any exchange or fees via Jack Henry lender.

In addition to the digital interface and broker option, the company’s PPP solution features built-in fraud and risk controls.

Jack Henry to Benefit

On the back of the latest move, the company is expected to witness strong adoption of its PPP loan solution and solid momentum among the financial institutions during the second round of stimulus payments in this coronavirus pandemic, which has caused disruptions to several small businesses globally.

These disruptions, in turn, are resulting in a spike in loan applications generated by the CARES Act.

Moreover, the ongoing pandemic resulted in increased user penetration of digital and online services.

Wrapping Up

The latest move bodes well for the company’s strong efforts toward strengtheningthe solutions portfolio through organic initiatives.

Further, it depicts Jack Henry’s strong commitment toward financial institutions. The PPP loan solution is helping the company to cater well to the dynamic requirements of banks during the pandemic.

Moreover, the recent advancements in it are expected to boost Jack Henry’s bank and credit union client base, which, in turn, will drive top-line growth in the near term.
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Notably, the company helped around 400 banks and credit unions last year in facilitating more than 70,000 PPP loan applications of small businesses.

Zacks Rank & Stocks to Consider

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

Some other top-ranked stocks in the broader computer and technology sector are KLA Corporation (KLAC - Free Report) , TE Connectivity Ltd. (TEL - Free Report) and Vishay Intertechnology, Inc. (VSH - Free Report) . All three companies carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rates for KLA, TE Connectivity and Vishay are pegged at 11.56%, 10.41% and 2.58%, respectively.

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