Backbase Joins the Jack Henry™ Vendor Integration Program

Rhea-AI Summary

Backbase, creator of the Engagement Banking Platform, has joined Jack Henry's Vendor Integration Program (VIP). This integration allows Backbase to connect with Symitar, Jack Henry's core banking system, via SymXchange. The partnership aims to streamline core banking connectivity for credit unions, offering over 400 pre-integrated composable capabilities.

Key benefits include:

• Simplified integration process
• Reduced implementation time and costs
• Improved member experiences
• Enhanced digital transformation capabilities

This collaboration enables credit unions to modernize their digital infrastructure more efficiently, potentially boosting their competitiveness in the market.

Positive

• Integration with Jack Henry's Symitar core banking system
• Access to Jack Henry's technical resources
• Over 400 pre-integrated composable capabilities
• Streamlined core banking connectivity for credit unions
• Potential for faster implementation and reduced costs

Negative

• None.

Insights

Financial Technology Analyst

Backbase's integration with Jack Henry's Symitar through the Vendor Integration Program (VIP) represents a significant development in the credit union technology landscape. This partnership addresses critical pain points for credit unions, including expensive integrations, slow implementation times and fragmented channel solutions. By leveraging SymXchange, Backbase's Engagement Banking Platform can now offer seamless access to core data and business rules, potentially accelerating digital transformation for credit unions.

The integration's impact on credit unions' operational efficiency and member experience could be substantial. With over 400 pre-integrated capabilities, credit unions can now rapidly modernize their digital infrastructure while maintaining core system integrity. This could lead to reduced costs, faster time-to-market for new services and improved competitive positioning in the financial services sector.

However, it's important to note that VIP inclusion doesn't equate to Jack Henry's endorsement. The true value of this integration will be determined by its adoption rate among credit unions and the tangible benefits it delivers in terms of member engagement and operational streamlining.

Market Research Analyst

This partnership between Backbase and Jack Henry signals a growing trend in the financial technology sector towards more open and integrated ecosystems. It addresses the increasing demand from credit unions for flexible, modern digital banking solutions that can be implemented without massive overhauls of existing core systems.

The market implications are significant:

• Potential for increased competition in the credit union technology space
• Acceleration of digital transformation among smaller financial institutions
• Possible shift in market share dynamics between legacy core providers and newer fintech players

For Backbase, this integration could expand its addressable market within the credit union sector, potentially leading to revenue growth. For credit unions, it offers a path to modernization that could help them compete more effectively with larger banks and digital-only challengers. The long-term impact on Jack Henry will depend on how this partnership affects the competitive landscape and customer retention within its ecosystem.

- VIP enables Backbase to integrate with Symitar^® -

ATLANTA--(BUSINESS WIRE)-- Backbase, the creator of the Engagement Banking Platform, today announced that it has joined the Jack Henry™ Vendor Integration Program (VIP). Participation in the program will provide Backbase with access to Jack Henry^’s technical resources to enable the Engagement Banking Platform to integrate with Symitar^®. The Vendor Integration Program is designed to help ensure that Jack Henry’s customers can easily deploy third-party products.

The Engagement Banking Platform integrates with Symitar via SymXchange™, a services-based programming interface that enables third-party vendors and credit unions to access the platform’s core data and business rules. The integrity of data is maintained throughout any data exchange, because access to business rules and data is managed through a service layer which governs these interactions.

Traditionally, credit unions faced expensive integrations and maintenance with a slow implementation time. This is due to a lack of unified channel solutions, no pre-integrated tech stacks, and too many point-to-point only solutions. With this integration, credit unions will no longer face those issues and will now be able to streamline their core banking connectivity while leveraging industry-leading member journeys. With over 400 composable capabilities now pre-integrated to Jack Henry Symitar, the Backbase Engagement Banking platform gives credit unions the flexibility to rapidly industrialize and modernize their digital channel infrastructure and incrementally hollow out their legacy cores.

“All too often, credit unions struggle with broken member experiences and slow time to market, which can greatly impact their ability to grow. This integration with Jack Henry’s Symitar solves all those problems and more,” said Roland Booijen, GM Ecosystems at Backbase. “By providing this functionality with our Engagement Banking Platform, we’re further delivering on our promise to our customers. We provide the backbone for their digital transformation, allowing them to stay competitive and evolve in an ever-changing market.”

Jack Henry’s VIP takes the customer out of the middle, providing vendors with direct access to Jack Henry’s technical resources and test systems. VIP inclusion is not an endorsement of the vendor’s product.

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 account holders. 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 Backbase

Backbase is on a mission to re-architect banking around your members.

Backbase created the Backbase Engagement Banking Platform – a unified platform with your members at the heart, freeing credit unions to empower their members in their financial lives. From onboarding, to servicing, loyalty and loan origination, our single platform — open and frictionless, with ready-to-go apps — improves every aspect of your members’ experience. Built from the ground up to serve your members, our Engagement Banking Platform plugs into 10+ existing core banking systems and comes pre-integrated with specialist fintechs, so your credit union can innovate at speed.

Industry analysts Forrester, Javelin, Aite, Gartner, Celent, and IDC continuously rank Backbase as one of the leaders in digital transformation. Over 120 credit unions and banks around the world have embraced the Backbase Engagement Banking Platform - including Blue Federal Credit Union, ENT Credit Union, Navy Federal Credit Union, SchoolsFirst Federal Credit Union, State Employees’ Credit Union, United Federal Credit Union, Washington State Employee Credit Union, Westerra Credit Union, and Wildfire Credit Union.

Backbase is a private fintech company, founded in 2003 in Amsterdam (Global HQ), and proudly serving the American market from our Americas HQ in Atlanta.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240917503780/en/

Backbase

Caliber Corporate Advisers

backbase@calibercorporateadvisers.com

Source: Backbase

FAQ

What is the significance of Backbase joining Jack Henry's Vendor Integration Program for JKHY stock?

Backbase joining Jack Henry's VIP could potentially increase the value of JKHY stock by expanding Jack Henry's ecosystem and making their Symitar core banking system more attractive to credit unions through improved integration capabilities.

How does the Backbase integration with Symitar benefit credit unions using JKHY services?

The integration provides credit unions using JKHY's Symitar with streamlined core banking connectivity, over 400 pre-integrated composable capabilities, and the potential for faster implementation and reduced costs, enhancing their digital transformation efforts.

What is SymXchange in relation to the Backbase and JKHY integration?

SymXchange is a services-based programming interface provided by Jack Henry (JKHY) that allows third-party vendors like Backbase to access Symitar's core data and business rules, facilitating seamless integration with the core banking system.

How might this partnership impact JKHY's market position in the credit union technology sector?

The partnership could strengthen JKHY's market position by enhancing the appeal of their Symitar core banking system to credit unions, potentially leading to increased adoption and customer retention for JKHY products.