Latino Community Credit Union Selects Jack Henry to Support Rapid Growth
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Insights
The partnership between Latino Community Credit Union (LCCU) and Jack Henry represents a strategic move in the financial services industry. LCCU's decision to upgrade its technology infrastructure with Jack Henry's Symitar platform is a response to the growing demand for more sophisticated financial products and services among its members. The platform's bilingual and culturally tailored capabilities, including microbusiness loans and commercial accounts, cater to a specific demographic that has historically been underserved by traditional financial institutions. This demographic focus could potentially open up new market segments and drive customer loyalty for LCCU.
Furthermore, the migration to a cloud-based infrastructure is indicative of a broader industry trend towards digital transformation. This move not only enhances business continuity and cybersecurity for LCCU but also positions the credit union to better compete with larger institutions by leveraging the scalability and flexibility of cloud services. For Jack Henry, supporting a rapidly growing CDFI like LCCU reinforces its reputation as a provider capable of scaling with its clients and may influence its market position positively.
LCCU's rapid growth trajectory, with a reported 15% annual increase and its expansion to a nationwide member base, suggests a robust financial performance that could be further bolstered by the partnership with Jack Henry. The technology overhaul is likely to result in operational efficiencies and cost savings over the long term, as in-house fintech integrations can reduce reliance on third-party vendors. Additionally, the enhanced service offerings and improved customer experience may contribute to increased member deposits and loan volumes, ultimately impacting LCCU's bottom line.
For Jack Henry, the collaboration with a high-growth CDFI like LCCU could have a favorable impact on its revenue streams. The provision of cloud services and platform integration for financial institutions is a recurring revenue model that can lead to stable and predictable cash flows. The success of this partnership could also serve as a case study to attract similar institutions, further expanding Jack Henry's market share.
The collaboration between LCCU and Jack Henry underscores the economic significance of financial inclusion and the role of CDFIs in fostering economic growth. By providing access to financial services for traditionally underserved populations, LCCU is contributing to the broader economic objective of reducing inequality and enabling wealth creation within immigrant and minority communities. The focus on bilingual services and personalized financial products is likely to enhance economic participation and stimulate entrepreneurship within these communities.
The enhanced technological capabilities provided by Jack Henry could also lead to more efficient allocation of financial resources, as LCCU can now offer more sophisticated financial products that meet the specific needs of its members. This tailored approach to financial services can help in optimizing capital distribution, which is essential for the health of the broader economy. The ripple effects of such financial empowerment can translate into increased consumer spending and business investments, potentially stimulating local economies and contributing to national economic growth.
CDFI poises to proliferate its mission of financial health and equity
For more than two decades, LCCU focused on its mission to provide its members with ethical financial products and education; the credit union relied on a larger credit union for its technology infrastructure. LCCU is one of the fastest growing credit unions in the country, with members in all 50 states and over
Working with Jack Henry will allow the credit union greater flexibility and configurability to provide a wider range of financial products and services that are fully bilingual (Spanish and English), personalized, and culturally tailored, including microbusiness loans and commercial accounts. The platform will enable the credit union to stabilize and grow with the option to add additional fintech integrations on their own timeframe. With Jack Henry, LCCU can deliver relevant personal financial support to its 135,000 members while continuing its rapid growth trajectory of
LCCU will also migrate its network infrastructure to Jack Henry's cloud environment, enhancing business continuity and disaster recovery efforts, as well as cybersecurity measures. It's another way the credit union can improve service while keeping their valuable resources focused on their community.
"This move is an evolution for LCCU, a result of the success that Latinos have experienced in our communities," said Vicky Garcia, President and CEO of LCCU. "Jack Henry will allow us to continue to grow alongside our members. We'll be even better positioned to understand how members use their accounts and offer more personalized products and services– and all in their preferred language. We will provide the valuable financial tools they need as they launch new businesses and build wealth. It's an exciting time."
Shanon McLachlan, president of Credit Union Solutions at Jack Henry, commented, "LCCU has been a model for how to serve unbanked and immigrant communities; we are proud to help them scale with speed while adding more sophisticated services with broader optionality. With our platform, the credit union will have the open, flexible infrastructure to add new financial health solutions as they come to market, staying modern, relevant, and helpful. LCCU joins the growing number of community development financial institutions (CDFIs) Jack Henry supports – together, we're building stronger and resilient 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 47 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.
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