Jack Henry & Associates (JKHY) RBC FinTech Conference summary

Business overview and market trends

• Focuses on providing technology solutions to US banks and credit unions, with a diverse product portfolio and a strategy centered on digital transformation and operating efficiency.

• IT demand remains strong, with spending growth expected in the 6%-10% range, driven by needs for deposit gathering, loan growth, and efficiency.

• Digital banking, fraud prevention, lending, and treasury tools are key areas of ongoing investment and customer demand.

• Market consolidation continues at about 4% annually, but growth is tied to account holders and assets, not just the number of institutions.

• Holds significant market share among mid-sized banks and credit unions, with 23% and nearly 50% respectively in the $500M–$10B segment.

Technology strategy and modernization

• Ongoing tech modernization focuses on unbundling the core system into modules, moving to a public cloud, and API-first architecture.

• Modularization allows phased migration, reducing risk and enabling faster delivery of new features.

• Receives strong interest from larger institutions, with over $320B in assets in the prospect funnel.

• Regulatory readiness for public cloud adoption is a key pacing factor; most clients currently use private cloud.

• About 72% of customers have migrated to private cloud, providing revenue tailwinds and operational efficiencies.

Product innovation and digital banking

• Banno digital banking platform serves over 11 million users, offering a unified experience across devices and continuous feature updates.

• Banno for Business launched as an add-on, enabling commercial and retail banking in one platform, with advanced features like authenticated chat and AI-driven support.

• Plans to offer Banno to non-core customers by year-end, leveraging it as a strategic entry point for broader product adoption.

• Competitive with leading digital banking providers, maintaining feature parity and rapid innovation cycles.