A newly announced collaboration between Jack Henry and digital payments processor Moov will empower regional and community financial institutions to offer enhanced payment services to their SME customers. These services will give SMEs a range of payment capabilities, from accepting payments with the tap of a phone to receiving same-day funds for payments accepted, to automating reconciliations to accounting software systems.
“This innovation is made possible by our technology modernization strategy to offer community and regional financial institutions cloud-native, API-first services that allow them to differentiate strategically, compete successfully, and meet the evolving needs of their customers,” Jack Henry President and CEO Greg Adelson said. “We are pleased to collaborate with Moov on this unique solution that will provide modern, innovative business payment capabilities to our clients that are seamlessly integrated with deposit and core banking services.”
The Jack Henry/Moov collaboration comes at a time when an increasing number of regional and community banks, as well as credit unions, are seeking ways to better serve their small business customers. A 2024 Jack Henry survey revealed that 78% of its clients expect to grow their small business capabilities over the next two years. Unsurprisingly, almost seven out of 10 respondents highlighted payments as the SME service they are most eager to introduce to their customers.
Smaller financial institutions do have their work cut out for them. According to a 2023 Datos Insights survey, 56% of small businesses do their banking with one of the four largest banks. Only 18% bank at a smaller financial institution. As such, solutions like those from the Jack Henry/Moov collaboration could go a long way toward helping regional and community banks, and credit unions better compete with their larger rivals.
“This solution will provide many benefits to SMBs, including one-click enrollment, automated itemized transaction processing and reconciliation, instant balance transfers from linked accounts to cover same-day transaction needs, and an integrated payment relationship with the financial institution,” Moov CEO and Co-founder Wade Arnold said.
Beta testing of the new payment services is expected to begin by mid-2025.
Cedar Falls, Iowa-based Moov offers a money movement platform that provides a straightforward and scalable way to integrate payments into products. As a payment processor, issuer, registered PayFac, program manager, and technology provider, Moov serves as a one-stop payment solution for businesses with complex money movement needs. Named to The Tech Tribune’s 2024 Best Tech Startups in Iowa roster, Moov was founded in 2018.
Founded in 1976 and headquartered in Monett, Missouri, Jack Henry has been a Finovate alum since its debut at FinovateFall in 2010. Today, the company is a major technology solution provider for banks and credit unions, offering its own internally developed capabilities as well as facilitating integrations with leading fintech innovators.
Jack Henry is a publicly-traded company on the NASDAQ under the ticker JKHY. The firm has a market capitalization of $12 billion.
Photo by Jose Cruz
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The collaboration between Jack Henry and Moov to offer enhanced payment services to SMEs is an exciting development in the world of financial technology. By providing small and medium-sized businesses with innovative payment capabilities, such as one-click enrollment and automated reconciliations, these services will help businesses streamline their operations and better serve their customers.
With the increasing demand for faster and more efficient payment solutions, the collaboration between Jack Henry and Moov comes at a crucial time when regional and community banks are looking to differentiate themselves and compete with larger financial institutions. By harnessing the power of cloud-native technology and API-first services, these institutions will be able to meet the evolving needs of their customers and stay ahead of the curve in the rapidly changing financial services landscape.
As the beta testing of the new payment services is set to begin by mid-2025, businesses can look forward to accessing a range of cutting-edge payment capabilities that will revolutionize the way they manage their finances. From instant balance transfers to integrated payment relationships with financial institutions, these services will empower SMEs to grow and thrive in an increasingly digital economy.
Overall, the collaboration between Jack Henry and Moev represents a significant step forward in the world of fintech, offering small and medium-sized businesses access to the latest payment technologies and helping them stay competitive in a fast-paced industry. With the potential to transform the way businesses handle payments and transactions, these services are set to revolutionize the financial landscape and pave the way for a more efficient and innovative future.
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