Jack Henry
This partnership will enable financial institutions to offer SMBs innovative payment services, including the ability to accept payments with a simple tap of a phone, receive same-day funds, and automate reconciliations with accounting software. These services will be integrated with the financial institutions’ existing deposit and core banking services, helping to streamline business operations and improve efficiency for SMBs.
Strategic Innovation to Support Community Banks and Credit Unions
“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,” said Jack Henry President and CEO Greg Adelson. “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.”
Jack Henry’s Chief Technology Officer Ben Metz highlighted the benefits of the service, emphasizing its potential to reduce fragmentation for SMBs, which often juggle multiple relationships with banks and fintechs.
He says, “This service will reduce fragmentation and place community banks and credit unions at the center of the relationship,” Metz said. “It also will help financial institutions capture SMB deposits, which tend to be significantly higher than retail deposits. This is especially compelling, as our clients have identified growing deposits as their top strategic priority.”
Addressing the Needs of America’s Small Businesses
According to the Small Business Administration, there are approximately 33.3 million small businesses in the U.S., representing 99.9% of all U.S. firms. However, a 2023 survey by Datos Insights revealed that 56% of small businesses bank with one of the four largest banks, while only 18% bank with a small financial institution.
Recognizing the importance of this market, Jack Henry’s 2024 Strategy Benchmark Survey found that 78% of its clients plan to expand their small business capabilities over the next two years, with nearly 70% prioritizing the addition of payment services for SMBs.
Jack Henry and Moov are planning a multi-phased rollout of this new service, with beta testing expected to begin by mid-2025.
This article, “Jack Henry Collaborates with Moov to Simplify Digital Payments for Small Businesses” was first published on Small Business Trends