Jack Henry & Associates
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| Jack Henry & Associates, Inc. | |
|---|---|
| Type | Public (NASDAQ: JKHY) |
| Founded | Monet (1976) |
| Headquarters | Monett, Missouri, United States |
| Key people | Michael E. Henry, Chairman John F. “Jack” Prim, CEO Tony L. Wormington, President |
| Website | http://www.jackhenry.com |
- For the football coach, see Jack Henry.
Jack Henry & Associates NASDAQ: JKHY an S&P 400 company[1], offers core processing solutions for community banks and credit unions, as well as asset and liability management systems, to more than 8,700 financial institutions and corporations[citation needed]. Jack Henry was ranked the 22nd largest provider of information technology services to the financial services industry worldwide in the 2007 FinTech 100 surveys[2]. Headquartered in Monett, Missouri, Jack Henry reported more than $668 million in total revenue for Fiscal Year 2007.[3]
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[edit] History
Jack Henry & Associates (JHA) was formed in 1976 by Jack Henry, working on a borrowed computer. Jerry Hall joined the venture that year. In 1977, JHA was incorporated and generated $9,360 in revenue.
The company went public October 29, 1985 with an IPO of 1.5 million primary shares. JHA started acquiring other companies in 1992. They acquired Symitar in 2000. In November 2006 they bought Profitstar, Inc., and rebranded them and a selection of other addon products as the ProfitStars suite in February 2006.[4]
[edit] Corporate Structure
Jack Henry has three business groups offering services to the financial services industry:
[edit] Jack Henry Banking
Jack Henry Banking provides three different core processing solutions (and approximately 100 related integrated components) to approximately 1,700 banks[citation needed].
[edit] Symitar
Symitar is a division of Jack Henry providing core systems to credit unions. It was founded in 1984 and acquired by Jack Henry in 2000. Symitar's flagship product is Episys, a core processing software application used by about 500 credit unions. The Epysis platform is notable for being fairly customizable. It has its own PowerOn scripting language (many refer to it as RepGen, short for its original name of Report Generator) and its own SymConnect interface which allows access to the core database by Symitar and Jack Henry add-on modules, as well as by third-party add-on providers.
In 2002 JHA acquired South Carolina-based CU Solutions, adding the Cruise core processing system to its credit union offering in the Symitar division. This is a Windows based system for smaller credit unions.[5]
According to Callahan and Associates, a respected source of surveys and published data related to the credit union industry, for the seventh consecutive year Symitar’s core processing platforms were implemented by more credit unions with assets exceeding $25 million than any competitive alternative. However, considered as a whole, the Fiserv solutions are implemented in far more credit unions.[6]
[edit] ProfitStars
The ProfitStars division provides a range of add-on products, mainly solutions offered by Jack Henry acquisitions. Some examples include Asset & Liability Management, Check 21 solutions, and ATM solutions.
[edit] Criticism & Controversy
Although the Episys platform is highly configurable, it has been noted that it generally requires a significant IT staff or developer-level consulting to configure and customize it, making it a questionable choice for financial institutions with small IT teams. This has been somewhat offset over time by development of significant consulting businesses both within Jack Henry and at various outside consultants.[1]
[edit] Recent Acquisitions & Divestitures
Activity listed is acquisitions unless called out as a divestiture.
[edit] 2007
- AudioTel Corporation
- Gladiator Technology Services
[edit] 2006
- US Banking Alliance
[edit] 2005
- Profitstar
- Tangent Analytics
- Stratika
[edit] Competition
Fidelity National Information Services[2]
Fidelity National Information Services, Inc. provides core financial institution processing, card issuer and transaction processing services, mortgage loan processing and related information products and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals.
Fiserv provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing (BPO), software and systems solutions. The company serves more than 18,000 clients worldwide[citation needed]. Fiserv was ranked the second largest provider of information technology services to the financial services industry worldwide in 2007 FinTech 100 surveys, giving up the top position it held 2004–2006 to Fidelity National Information Services.[4]. Headquartered in Brookfield, Wisconsin, Fiserv reported more than $4.4 billion in total revenue for 2006.
Metavante products and services drive account processing for deposit, loan and trust systems, image-based and conventional check processing, electronic funds transfer, consumer healthcare payments, electronic presentment and payment, and business transformation services.
TSYS offers broad range of issuer- and acquirer-processing technologies that support consumer-finance, credit, debit and prepaid services for financial institutions and retail companies in the Americas, EMEA and Asia-Pacific regions.
John H. Harland Company[7]
Harland offers a wide range of products including core processing solutions for banks and credit unions. They claim to serve over 7,000 clients.
