Jack Henry & Associates JKHY expanded its credit card offering in partnership with TIB to strengthen its payment solutions portfolio.
Jack Henry is leveraging TIB’s Agent Credit Card program for this purpose.
With this program, Jack Henry will help various financial institutions to issue credit cards seamlessly.
Financial institutions will be able to purchase and transform their agent portfolios into in-house and self-managed ones on the back of the Agent Credit Card program.
The program’s robust relationship-based underwriting process will allow these institutions to leverage higher approval and card usage rates.
Given these benefits, we believe that Jack Henry will gain solid momentum among financial institutions, which, in turn, will strengthen its customer base.
The latest move bodes well for the company’s growing efforts toward expanding its solutions portfolio.
Recently, Jack Henry unveiled a policy management solution that streamlines policy creation, review, approvals, attestations, and exceptions with workflows, documentation and storage on a single platform.
Additionally, the company’s recent acquisition of Payrailz remains noteworthy. The buyout allows Jack Henry to aid financial institutions to cater to the needs of consumers and commercial accountholders seamlessly.
On the back of the buyout, JKHY rolled out its standalone person-to-person payment solutions.
Growing Customer Base
An expanding solutions portfolio continues to aid Jack Henry in gaining strong customer momentum.
Recently, the company’s Symitar platform was selected by L&N Federal Credit Union. The latter strives to build and offer solutions through fintech relationships, equip its members with advanced tools, streamline its operations, and boost efficiencies on the back of Symitar.
Further, JKHY got picked by TIB last month. TIB is leveraging the former’s technology platform to support near and long-term operations.
We believe that growing customer momentum will continue to aid the company in winning investor confidence in the near term.
Shares of Jack Henry have gained 10% in the past year against the industry’s decline of 1%.
However, the company is suffering from mounting expenditure. Rising headcounts and personnel costs are weighing on margin expansion. Also, increasing expenses related to the card processing platform are concerning.
Zacks Rank & Stocks to Consider
Currently, Jack Henry carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Computer & Technology sector are Arista Networks ANET, Agilent technologies A and Asure Software ASUR. All companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks has lost 8.5% in the past year. The long-term earnings growth rate for ANET is projected at 17.5%.
Agilent has gained 10.6% in the past year. A’s long-term earnings growth rate is projected at 10%.
Asure Software has gained 37.9% in the past year. The long-term earnings growth rate for ASUR is projected at 23%.
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