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Jack Henry (JKHY) Boosts Client Base With United Bank Deal

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Jack Henry (JKHY - Free Report) continues to experience strong customer momentum on the back of its robust technology solutions, which remain its growth drivers. Its shares have gained 2.5% in the year-to-date period, outperforming the industry’s decline of 8.1%.

This is evident from the latest move of United Bank, which recently selected Jack Henry as its technology provider.

This collaboration will enable United Bank to utilize Jack Henry's LoanVantage and Banno Digital Platform to enhance its lending and Community Development Financial Institution reporting capabilities for small and retail business customers.

Further, United bank will benefit from Jack Henry’s customizable tools, aiming to fill technology gaps, streamline processes, and enhance customer experience.

Expanding Clientele

Apart from United Bank, Jack Henry recently added First State Bank to its clientele.

The partnership will enable First State Bank to leverage Jack Henry’s modern, customizable core processing solution and the Banno Digital Platform to automate processes and enhance efficiencies for retail and commercial customers.

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

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 Independent Community Bankers of America (ICBA) also selected Jack Henry as its technology provider.

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.

Portfolio Strength Aids Growth

Jack Henry’s growing efforts to enhance its technology solutions portfolio in a bid to boost its customer base remain noteworthy.

In this regard, 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).

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.

Earlier, the company strengthened its technology solutions portfolio with the launch of 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.

Expanding portfolio solutions will continue to aid Jack Henry in bolstering its overall financial performance in the near term.

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%.

Zacks Rank & Other Stocks to Consider

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

Some other top-ranked stocks in the broader technology sector are Applied Materials (AMAT - Free Report) , BlackLine (BL - Free Report) and AMETEK (AME - Free Report) , 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 Applied Materials have gained 28.8% in the year-to-date period. The long-term earnings growth rate for ABNB is 16.85%.

Shares of BlackLine have gained 2.5% in the year-to-date period. The long-term earnings growth rate for BL is currently projected at 5.50%.

Shares of AMETEK have gained 9.4% in the year-to-date period. The long-term earnings growth rate for AME is 9.19%.

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