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Jack Henry (JKHY) Boosts Clientele With Pinwheel Partnership

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Jack Henry (JKHY - Free Report) is enjoying growing customer momentum on the back of its robust product portfolio.

Jack Henry’s recent collaboration with the fintech company Pinwheel testifies to the aforesaid fact.

Per the terms of the partnership, Pinwheel will leverage Jack Henry’s digital banking platform, Banno Digital Platform, to make its direct deposit switching solutions accessible across financial institutions.

Further, Pinwheel will use 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.

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

Growing Clientele

Apart from Pinwheel, Jack Henry’s partnership with Credit Union 1 (“CU1”) testifies to its growing customer base on the back of its robust portfolio.

Per the terms, CU1 leveraged Jack Henry’s Symitar core platform for modernization, disaster recovery and business continuity plan, allowing for efficient reallocation of internal resources.

Jack Henry was also chosen by Machias Savings Bank to modernize its technology stack and enhance customer service as the bank grows.

Additionally, Saco & Biddeford Savings Institution (“SBSI”), a mutual savings bank, picked Jack Henry to modernize its technology infrastructure and expand small business banking.

Jack Henry's cash management and lending solutions will enhance SBSI’s business efficiency, customer service, regulatory compliance and competitiveness, ensuring future growth for its customers.

Portfolio Strength: Key Catalyst

The company’s increasing efforts to strengthen its overall product portfolio are the key catalysts behind its expanding clientele.

Notably, Jack Henry launched Jack Henry Financial Crimes Defender, a cloud-native fraud and anti-money laundering solution. The solution aims to help financial institutions combat financial crimes across various channels.

Further, the Financial Crimes Defender platform, built on the public cloud, offers real-time detection and prevention of fraud, allowing institutions to stop transactions before they leave the institution or appear in clients' accounts. Its open architecture allows seamless integration of third-party data, improving overall fraud management.

The company also unveiled Payrailz Fraud Monitor, an AI-based feature that provides real-time fraud detection during payment transactions. 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 $2.211-$2.232 billion. The Zacks Consensus Estimate for the same is pegged at $2.22 billion, implying year-over-year growth of 6.8%.

Zacks Rank & Other Stocks to Consider

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

JKHY’s shares have declined 7.8% in the past year against the Zacks Computer & Technology sector’s growth of 42.5%.

Some other top-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Logitech International (LOGI - Free Report) and Itron (ITRI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have returned 116.5% over the past year. The long-term earnings growth rate for ANET is pegged at 19.77%.

Shares of Logitech International have returned 64.5% over the past year. The long-term earnings growth rate for LOGI is currently projected at 15.75%.

Shares of Itron have gained 22.3% over the past year. The long-term earnings growth rate for ITRI is currently projected at 23%.

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