Jack Henry To Offer Tech Platform For Consumer Loans

Jack Henry & Associates, which offers a technology platform for financial institutions (FIs), is branching out with a new line of business, dubbed Jack Henry Consumer Loans. The company said that its “simplified digital process” offers FIs “a unified solution to create, manage and support borrower relationships and loans of all types.”

Jack Henry said in a press release that it aims to bring the success of its commercial loan platform over to the consumer world. The company has 8,700 clients nationwide and works with banks, credit unions and other businesses.

“Our consumer loan portfolio significantly grew last year,” said Christy Alexander, senior vice president and manager of loan origination and servicing at First Oklahoma Bank. “And we expect that pace to continue into 2021.” Part of achieving that goal is the installation of the new consumer loan platform. The bank had already used Jack Henry’s commercial lending platform for two years, and recently added the new consumer capabilities. That move “will allow us to process loans with more speed and efficiency while facilitating a better borrower experience. This will ultimately allow our customers to access their borrowed funds quickly and conveniently,” said Alexander.

“Consumer lending generates about 70 percent of all loan transactions for an average financial institution, but banks and credit unions have historically lacked the integrated technology necessary to make the process efficient,” said Terry Renoux, head of Jack Henry Lending. He said that FIs can now use his company’s tech platform “to facilitate all of their lending needs, creating a more streamlined approach to business.”

Renoux added that his company’s “modern loan process will be a key competitive differentiator” for FIs, and will automate redundant tasks and improve workflows.

At a global financial services conference last fall, J.P.Morgan CEO Jamie Dimon said banks that don’t adapt in how they deal with customers will go the way of the dinosaurs. “Banks are good at creating pain points by making customers sign several forms and documents,” Dimon told attendees. “We are doing a much better job now at easier, faster and quicker transactions. We’ve got to do more of it.”