Direct-to-core integration enhances deposit
and non-interest fee income potential
MONETT,
Mo., Sept. 30, 2024 /PRNewswire/ -- Jack
Henry™ (Nasdaq: JKHY) announces the expansion of its
collaboration with Victor Technologies, Inc., a subsidiary of
MVB Edge Ventures, Inc. and part of MVB Bank, Inc. The companies
launched an embedded-payments management platform to help
Jack Henry's financial institution
clients capitalize on Payments-as-a-Service (PaaS) market
opportunities. MVB Bank, Dart Bank, and BayFirst National
Bank are using the platform today.
While many financial institutions are considering PaaS, only 3%
currently offer the service. Early iterations of PaaS were
challenged by insufficient accounting and audit controls. The
Victor PaaS platform, built under the oversight of MVB Bank with
financial institutions in mind, gives financial institutions more
direct control and visibility within this transparent,
direct-to-core PaaS offering. With this integration, financial
institutions will have the opportunity to grow low-cost deposits
and non-interest fee income.
Maf Sonko, Chief Operating
Officer at Victor, explained, "The payments landscape is changing.
Payments are increasingly a part of businesses' strategies to
improve the customer experience with instant payments, wallet
integrations, financing options, and loyalty programs. It's
critical for financial institutions to support and facilitate this
transformation. By working with Jack
Henry, we are empowering more financial institutions to
support embedded payments for their commercial clients. This will
positively impact the growth of both financial institutions and
their clients."
Financial institutions on Jack
Henry's SilverLake core can now leverage Victor's embedded
payments platform, allowing corporate clients, software companies,
and fintechs to seamlessly embed payments capabilities through a
single API. The core integration allows for transaction-level, near
real-time reconciliation, safeguarding the financial institution
from clients spending funds they have not yet reconciled. The
platform also provides a single source of truth for money movement
and compliance reporting.
Financial institutions are using the platform to serve a wide
range of business entities and fintechs across a robust set of
payment types. Current use cases include disbursements and
receivables, as well as cross-border, escrow, title, and ecommerce
payments. Using ACH, wire, and instant payments, the platform also
enables virtual accounts and wallets, scales inbound payments to
user accounts, and links to cards to help card users manage their
balances at third parties.
William J. Hufnagel, President
and CEO of Dart Bank, said, "Dart Bank is excited to be an early
collaborator in this new relationship with Victor and Jack Henry. They've built a solution
that has positioned us well with our fintech clients. With Victor's
direct integration into our Jack
Henry banking core, we maintain a high degree of oversight
that helps strengthen our compliance posture with fintechs."
Larry F. Mazza, CEO of MVB Bank,
said, "MVB has strategically sought to be not just a banker of
fintechs but also a builder of fintechs. This includes incubating
Victor as a standalone entity enabling banks to own the
relationship and the tech required to support fintech partnerships
in a regulatory compliant structure. This collaboration with
Jack Henry positions Victor, a tech
company built by bankers, as a market leader for these
services."
"Jack Henry's strategic
relationship with Victor aligns with our technology modernization
strategy to leverage API-first, public-cloud infrastructure that
keeps financial institutions at the center of payments," said
Tede Forman, Vice President of
Jack Henry and President of Payment
Solutions. "Offering a proven, high-volume embedded payments
platform creates new revenue streams while mitigating risks with
the strong controls and assurance that Jack
Henry is known for. Our ongoing collaboration with Victor is
shaping the future of embedded payments."
About Jack Henry &
Associates, Inc.®
Jack Henry™ (Nasdaq: JKHY) is a well-rounded financial technology
company that strengthens connections between financial institutions
and the people and businesses they serve. We are an S&P 500
company that prioritizes openness, collaboration, and user
centricity – offering banks and credit unions a vibrant ecosystem
of internally developed modern capabilities as well as the ability
to integrate with leading fintechs. For more than 48 years,
Jack Henry has provided technology
solutions to enable clients to innovate faster, strategically
differentiate, and successfully compete while serving the evolving
needs of their accountholders. We empower approximately 7,500
clients with people-inspired innovation, personal service, and
insight-driven solutions that help reduce the barriers to financial
health. Additional information is available at
www.jackhenry.com.
About Victor Technologies, Inc.
Victor Technologies,
Inc., ("Victor") is a wholly owned subsidiary of MVB Edge Ventures,
Inc., ("MVB Edge Ventures") and a part of the MVB Bank, Inc. ("MVB
Bank") family (collectively "MVB"). MVB Financial Corp., ("MVB
Financial") the innovative financial holding company of MVB Bank,
Inc., is publicly traded on The Nasdaq Capital
Market® under the ticker "MVBF." Victor provides
banking technology solutions that simplify direct Bank-Fintech
partnerships. Victor APIs help technology companies and
corporations embed financial solutions within their product
offerings and its platform tools help banks manage fintech
partnerships and compliance at scale. For more information, visit
www.victorfi.com.
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SOURCE Jack Henry &
Associates, Inc.