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.

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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.

Copyright 2024 PR Newswire

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