Jack Henry and Zelle make faster payments more accessible for minority-owned institutions
Jack Henry & Associates, Inc. (NASDAQ: JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, announced today that it is partnering with Early Warning Services, LLC, the network operator behind Zelle, to make faster payments more readily available for minority-owned depository institutions (MDIs).
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The companies are offering a rebate program through June 30, 2022 to MDIs nationwide, allowing them to seamlessly connect to Early Warning’s Zelle Network® using JHA PayCenter™, Jack Henry’s proprietary faster payments hub.
The FDIC defines MDIs as federally insured depository institutions for which 51% or more of the voting stock is owned by minority individuals; or a majority of the board of directors is minority and the community that the institution serves is predominantly minority. These institutions are encouraged to join 255 institutions currently contracted to leverage the Zelle Network® through Jack Henry to help consumers expedite payments. Currently available at over 1,000 financial institutions, Zelle® is a fast, safe and easy way for consumers to send and receive money quickly and easily with friends, families and others they trust who have a bank account in the U.S. Banks and credit unions offering Zelle® can reduce operating expenses by digitizing transactions, create more cross-selling and revenue opportunities, and attract and retain convenience-driven customers.
Lou Anne Alexander, chief product officer of Early Warning, said, “We are proud to partner with Jack Henry in offering minority-owned institutions access to faster payments. Through this partnership, we are making it easier for minority-owned banks and credit unions to provide their customers and members with modern tools to achieve financial goals and improve financial health. It’s another step towards a more inclusive and equitable payments landscape.”
Tede Forman, vice president of payment solutions at Jack Henry, added, “Minority-owned depository institutions are often focused on traditionally underserved or overlooked communities, those deserving and in need of faster access to their money. Working with Early Warning to help these communities gain access to faster payments can avert late fees and penalties, protect their credit, and provide the convenience that everyone deserves today. Faster payments can provide MDIs and the communities they serve with high-demand financial services that generate tangible, long-term benefits.”
Zelle Network® participants signed onto the network represent approximately 75% of the U.S. DDA market (585 million DDAs).