The platforms include Jack Henry’s SilverLake core banking platform and Banno Digital Platform through the Jack Henry Fintech Integration Network (FIN), which is designed to help ensure that Jack Henry’s customers can easily deploy third-party products, the release said.
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“Every time a customer chooses a third-party buy now, pay later app instead of their bank, the bank loses more than a loan,” the release said. “It loses transaction visibility, fee income, engagement and another opportunity to strengthen the primary banking relationship. Over time, payment innovation shifts away from the financial institution and into the hands of third parties.”
Splitit was designed to reverse this trend, according to the release. Its platform, integrated with Jack Henry, lets banks and credit unions bring “payment innovation back inside the banking relationship” by offering installment capabilities for deposit accounts and debit cards.
“Banks and credit unions shouldn’t have to watch their most loyal customers leave the banking relationship every time they want more payment flexibility,” Splitit Chief Technology Officer Ran Landau said in the release. “Consumers increasingly expect their trusted financial institution to offer installment payments that are as seamless and embedded. Building and continuously evolving an AI-powered installment platform that keeps pace with changing expectations isn’t something most financial institutions should have to do on their own. That’s exactly why we built Splitit.”
The PYMNTS Intelligence report “The Pay Later Data Shift: Credit Card Installments Take the Lead” found in April that installment lending has become a tool for managing purchasing and cash flow, instead of a financial lifeline. Wealthy consumers seem to be using the products because they value payment flexibility, budgeting control and convenience, not because they can’t access other types of credit.
“For banks, the findings reinforce the value of existing customer relationships,” PYMNTS reported June 3. “Card issuers possess transaction histories, established trust and direct access to consumers through accounts that are already active. Those advantages can reduce customer acquisition costs while increasing the likelihood that installment products remain within the issuer’s ecosystem.”
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