First Federal Bank of Kansas City Selects Jack Henry for Growth and Innovation

Rhea-AI Summary

Jack Henry, a technology solutions provider, announced that First Federal Bank of Kansas City (FFBKC) has selected its services to drive growth and innovation. FFBKC, a mutual bank with $960 million in assets, aims to enhance customer experience and expand its small business services, particularly in real estate. Jack Henry's hosted core processing solution and Banno Digital Platform will streamline operations and improve digital banking for retail and commercial customers. The bank's expansion plan includes offering loans to SMBs, supported by Jack Henry's enterprise solutions like treasury, document, and workflow management, and LoanVantage for commercial real estate lending. Both companies share a strong local community focus, and the partnership will help FFBKC surpass $1 billion in assets while remaining agile and responsive to market opportunities.

Positive

• FFBKC, with $960 million in assets, plans to enhance customer experience and expand small business services.
• Jack Henry's hosted core processing solution and Banno Digital Platform will increase automation and efficiencies.
• Enterprise solutions like treasury, document, and workflow management will support SMB operations.
• LoanVantage will enable FFBKC to expand into commercial real estate lending.
• Partnership aims to help FFBKC surpass $1 billion in assets.

Negative

• None.

Insights

Financial Analyst

The partnership between First Federal Bank of Kansas City (FFBKC) and Jack Henry introduces significant transformative potential for FFBKC’s operations. FFBKC’s assets totaling $960 million signify a solid base for growth. The adoption of Jack Henry's advanced technology is poised to optimize operational efficiency through automation and digitization, important in the competitive banking landscape. These enhancements are likely to reduce operational costs and improve profit margins over time.

FFBKC’s decision to integrate services like the Banno Digital Platform™ and LoanVantage aligns with its strategy to expand into small and medium-sized business (SMB) lending. This move diversifies their loan portfolio beyond traditional home mortgages into commercial real estate—a sector that typically offers higher returns. However, the bank must manage the increased credit risk associated with commercial lending.

It's also worth noting that with Jack Henry’s hosted solutions, FFBKC can scale efficiently as it aims to surpass the $1 billion asset mark, enhancing its competitive stance in the regional market. This expansion could lead to a positive long-term growth trajectory for the bank.

Technology Expert

Jack Henry's suite of solutions, particularly the core processing and Banno Digital Platform™, offers state-of-the-art automation and digital banking tools that are essential for modern banks. By employing these, FFBKC will enhance user experience and operational efficiency. The cloud-based architecture of these solutions ensures scalability and flexibility, enabling FFBKC to rapidly adapt to market changes and customer demands.

The implementation of treasury, document and workflow management tools stands to significantly boost the bank’s efficiency in handling SMB operations. LoanVantage provides a robust framework for managing commercial real estate lending, a critical component of FFBKC’s new growth strategy. The integration of these technologies will not only streamline processes but also provide real-time analytics and decision-making capabilities, offering a competitive edge.

Market Research Analyst

FFBKC’s move to extend services to SMBs is a response to a clear market need, given that 85% of the community’s employment comes from these businesses. This strategic pivot can drive local economic growth while enhancing FFBKC’s community presence. The alignment of Jack Henry’s technological capabilities with FFBKC’s mission provides a solid foundation for sustainable growth.

Moreover, the cultural fit between FFBKC and Jack Henry, both rooted in Missouri, adds an extra layer of partnership stability, which could positively influence customer trust and loyalty. This localized approach may also result in increased customer retention and acquisition in the region, creating a robust customer base for FFBKC's expanded services.

Bank to enhance customer experience, boost efficiencies and expand small business services

MONETT, Mo., July 8, 2024 /PRNewswire/ -- Jack Henry™ (Nasdaq: JKHY) announced today that First Federal Bank of Kansas City (FFBKC) has selected Jack Henry for growth and innovation.

FFBKC is a mutual bank based in Kansas City, Missouri, with a rich 90-year history and a strong focus on consumer banking, particularly home mortgages. Since its inception, FFBKC has been dedicated to promoting financial health in its community. The bank views homeownership as a gateway to financial independence, making traditional mortgage loans while working closely with non-profit organizations to help lower-income households achieve their dream of buying a home.

The $960-million asset bank has an opportunity to grow and meet more needs in its community. One example of its planned expansion is offering retail customers loans for their small businesses, particularly in real estate. The bank needed a modern and open technology provider to automate processes, enhance customer service and provide more functionality to support small- and medium-sized businesses (SMBs).

Jack Henry's hosted core processing solution will increase automation and efficiencies, while Banno Digital Platform™ will provide a more user-friendly digital banking experience for both retail and commercial customers. Enterprise solutions like treasury, document, and workflow management tools will help SMBs operate their businesses effectively, while LoanVantage will enable the bank to branch out into commercial real estate lending.

"As a mutual bank, for almost a century we've provided a high level of support and financial education to consumers in Kansas City. We now want to extend the same service to SMBs, who employ 85% of our community and our country," said J.R. Buckner, President and CEO at FFBKC. "After careful market analysis, we felt that Jack Henry had the products and services that would help us execute our business plan better and more profitably than any other option. Also, there's an undeniable cultural alignment between our two companies – both are founded and raised in the state of Missouri with a passion for supporting local communities and Main Street America."

Jack Henry's technology modernization strategy will make modern service components available for financial institutions in the public cloud, offering a real advantage for the bank in the future. "Jack Henry continues to make investments in its core platform which will help us innovate faster and meet the evolving needs of our customers," Buckner said. "As we continue to grow and surpass $1 billion in assets, we need a nimble and responsive technology provider that will allow us to quickly execute on opportunities as they arise."

"To stay competitive and responsive to changing conditions, community banks operating in growing metropolitan areas like Kansas City often have to pivot and explore new business lines that comply with their mission, vision and values," said Jonathan Baltzell, Vice President and President of Bank Solutions. "FFBKC saw an opportunity to expand their unique high-touch service to SMBs and needed the right technology provider to help them do so. We are proud to help position them for future growth and innovation."

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.

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SOURCE Jack Henry & Associates, Inc.

FAQ

What recent partnership did FFBKC announce?

FFBKC announced a partnership with Jack Henry to enhance customer experience and expand small business services.

How much in assets does FFBKC have?

FFBKC has $960 million in assets.

What will Jack Henry provide for FFBKC's growth?

Jack Henry will provide a hosted core processing solution, Banno Digital Platform, and enterprise solutions like treasury, document, and workflow management.

What specific areas will FFBKC expand into with the help of Jack Henry?

FFBKC will expand into commercial real estate lending and offer loans to small- and medium-sized businesses.

What is the stock symbol for Jack Henry?

The stock symbol for Jack Henry is JKHY.