Jack Henry & Associates (JKHY) RBC Capital Markets Global Financial Technology Conference summary

Industry trends and banking technology investment

• Banking technology spend is expected to grow 6%-10% year-over-year, up from 3%-5% in prior years, with focus areas including deposit growth, lending, efficiency, AI, and payment strategies.

• Increased market dislocation among competitors has opened new opportunities, with more deals expected this year and a higher win rate for larger contracts.

• Innovation, culture, service, and execution are cited as key differentiators, leading to a record number of large, multibillion-dollar institution wins.

Product innovation and modularity

• The digital banking platform, built from the ground up as public cloud native, now serves 15 million users and has achieved feature parity with top digital competitors.

• Trifecta wins (core, digital, and card solutions) now account for 60% of core wins, up from 29% last year, increasing contract value and client stickiness.

• Core technology is being componentized, allowing incremental upgrades and easier integration with public cloud offerings, reducing conversion risk and cost.

Cloud migration and regulatory engagement

• 79% of clients have migrated from on-premises to private cloud, with larger clients increasingly making the shift due to compliance and AI needs.

• Public cloud migration is underway, with incremental revenue lifts expected as more components move; regulatory engagement is ongoing to address data protection and compliance.

• Public cloud enables faster innovation, higher uptime (five nines), and improved auditability, which are positively received by regulators.