AmeriCU Credit Union Leverages Jack Henry to Fuel Community Reinvestment and Growth

Rhea-AI Summary

Jack Henry™ (Nasdaq: JKHY) announced that AmeriCU Credit Union is leveraging its technology infrastructure to expand geographically and meet more community needs. AmeriCU, founded in 1950, has used Jack Henry's Symitar core system for 30 years, growing from $193 million to $2.7 billion in assets. The credit union serves over 164,000 members across 20 locations in Central and Northern New York.

Jack Henry's SymAdvisor consulting team helped AmeriCU launch competitive rewards checking and debit card accounts, implement data analytics solutions, and reduce account opening time from 10 to 3.5 minutes. The credit union also added features like earned wage access to differentiate itself and increase wallet share.

AmeriCU demonstrates strong community commitment, offering emergency loans during severe weather and providing discounts to first responders and military members for homeownership.

Positive

• AmeriCU's assets grew from $193 million to $2.7 billion over 30 years using Jack Henry's Symitar core system
• Reduced account opening time from 10 minutes to 3.5 minutes, improving efficiency
• Launched competitive rewards checking and debit card accounts for consumers and businesses
• Implemented earned wage access feature to increase wallet share
• 27% of closings since 2022 have come through specialty programs for first responders and military members

Negative

• None.

Insights

Financial Analyst

AmeriCU Credit Union's long-term partnership with Jack Henry showcases a successful growth strategy in the financial services sector. The credit union's asset growth from $193 million to $2.7 billion over 30 years is impressive, indicating strong financial management and effective use of technology. The reduction in account opening time from 10 minutes to 3.5 minutes is a significant operational efficiency gain, potentially leading to increased member acquisition and satisfaction.

However, investors should note that this news, while positive, doesn't provide specific financial metrics or earnings data. The impact on Jack Henry's stock may be in the short term, but the long-term implications of retaining a client for 30 years and supporting their growth are favorable for Jack Henry's business model and reputation in the industry.

Market Research Analyst

AmeriCU's expansion strategy, supported by Jack Henry's technology, offers valuable insights into current market trends. The focus on digital footprint expansion and the introduction of competitive rewards programs align with consumer preferences for convenient, value-added banking services. The implementation of features like earned wage access demonstrates responsiveness to emerging financial needs, potentially giving AmeriCU a competitive edge in attracting younger demographics.

The credit union's community-focused initiatives, such as emergency loans and special programs for first responders and military members, reflect a growing trend of financial institutions prioritizing social responsibility. This approach can enhance brand loyalty and member retention, important factors in the highly competitive financial services market.

Tech Expert

Jack Henry's ability to scale its Symitar core system to support AmeriCU's growth from a $193 million to a $2.7 billion institution demonstrates the robustness and scalability of their technology stack. The transition to private cloud hosting while optimizing existing systems showcases Jack Henry's capability to provide modern, efficient solutions that grow with their clients.

The integration of data analytics for adoption-based rewards and the significant reduction in account opening time are testament to the system's adaptability and efficiency. These technological advancements position Jack Henry as a strong player in the financial technology sector, capable of meeting the evolving needs of credit unions and banks in an increasingly digital-first financial landscape.

Long-term alliance amplifies credit union's impact on local communities  

MONETT, Mo., Sept. 11, 2024 /PRNewswire/ -- Jack Henry™ (Nasdaq: JKHY) announced today that AmeriCU Credit Union is leveraging its technology infrastructure and expertise to expand geographically and meet more community needs.

Founded in 1950 at Griffiss Air Force Base in Rome, N.Y., AmeriCU provides military personnel and an expanded field of membership with solutions to help them achieve their financial goals and make banking easier. Today, the credit union serves more than 164,000 members in 20 locations throughout Central and Northern New York.

AmeriCU has used Jack Henry's Symitar core system for the past 30 years, expanding its assets from $193 million to $2.7 billion with the support of the technology provider. As it scaled, Jack Henry was able to meet AmeriCU's needs, transitioning them to the private cloud while optimizing and extending its systems. Continual modernization made the credit union more efficient, allowing it to reallocate time and resources toward expansion and greater community impact.

AmeriCU's expansion is powered by a broader digital footprint. Jack Henry's SymAdvisor consulting team helped the credit union launch a competitive rewards checking and debit card account for consumers and businesses, attracting new members. They also provided data analytics and reporting solutions to support easy adoption-based rewards, keeping members engaged. Collaborating with Jack Henry, the credit union was able to identify and verify member eligibility more efficiently, reducing account opening time from 10 minutes to just 3.5 minutes. In addition, they added features to differentiate the credit union and increase wallet share, such as earned wage access, which offers employees and members the financial flexibility to access their wages before payday.

"For the past three decades, Jack Henry has equipped AmeriCU with the scalable infrastructure and strategic guidance to attract new growth and further support our communities," said Jason Lewin, CIO of AmeriCU. "As we expand, we're eager to find ways to strengthen and maintain our relationships with members and businesses alike. Our continued growth and reinvestment allows us to be a better resource for our communities, making financial services more affordable and accessible."

AmeriCU is dedicated to its community. When intense weather hit the area in July, the credit union was quick to offer members 0% APR emergency loans, skip-a-payment options, and business emergency relief loans. As an ongoing effort, the credit union accepts donation requests that are reviewed and approved by local community members. AmeriCU also provides discounts to first responders and military members to help them achieve homeownership. Since 2022, 27% of closings have come through these specialty programs.

"AmeriCU is a true embodiment of the credit union movement," said Brynn Ammon, president of Credit Union Solutions at Jack Henry. "The credit union continues to invest in technology, support, and service to meet the evolving needs of its community. We've enjoyed working with them to maximize their investments and reach their goals and look forward to seeing the positive impact they continue to have on their communities."

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 AmeriCU Credit Union
As a credit union, AmeriCU is a not-for-profit financial institution owned by our members. Serving 24 counties in New York and beyond, AmeriCU provides you with all the products and services you need – often with low or no fees, and better rates. The organization has been serving the local community for over 70 years and, in that time, has grown to more than 164,000 members, 20 financial centers, and $2.7 billion in assets. AmeriCU is located in Central New York and is among the State's largest, full-service financial cooperatives. For more information, visit www.AmeriCU.org. Equal Housing Lender – Federally Insured by NCUA – Membership Eligibility Required.

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SOURCE Jack Henry & Associates, Inc.

FAQ

How has AmeriCU Credit Union's partnership with Jack Henry (JKHY) impacted its growth?

AmeriCU Credit Union's 30-year partnership with Jack Henry has supported its growth from $193 million to $2.7 billion in assets, while expanding its member base to over 164,000 across 20 locations in Central and Northern New York.

What technological improvements has AmeriCU implemented with Jack Henry's (JKHY) support?

With Jack Henry's support, AmeriCU has transitioned to private cloud, launched competitive rewards checking and debit card accounts, implemented data analytics solutions, and reduced account opening time from 10 to 3.5 minutes.

How is AmeriCU Credit Union supporting its local communities?

AmeriCU supports its communities by offering 0% APR emergency loans during severe weather, providing discounts to first responders and military members for homeownership, and accepting donation requests reviewed by local community members.

What percentage of AmeriCU's closings have come through specialty programs since 2022?

Since 2022, 27% of AmeriCU's closings have come through specialty programs designed for first responders and military members to help them achieve homeownership.