News

JHA lands bids to provide outsourced processing for mid-tier banks

September 5, 2013

The Jack Henry Banking division of Jack Henry & Assoc. Inc., a provider of technology solutions and payment processing services primarily for the financial services industry, announced today that two longtime mid-tier banks — Maine-based Camden National Corp. and Missouri-based Midwest BankCentre — are the latest of 25 core bank clients that migrated from in-house to outsourced processing during the company's fiscal year 2013, which ended June 30.

"Outsourcing is becoming the preferred delivery method for technology in the financial services industry and there are a wide variety of considerations driving in-house banks to consider outsourcing," said Stan Viner, general manager of sales for Jack Henry Banking. 

"JHA OutLink Processing Services, our turnkey outsourced offering, positions Jack Henry Banking as a seamless extension of a bank's operations ... Through strategically located data and item processing centers we provide highly customized processing solutions that can seamlessly support our clients' evolving business strategies and operating environments."

For Midwest BankCentre, this was certainly the case, as Dale Oberkfell, executive vice president and CFO of explained:

"Migrating to outsourcing was a very strategic decision for our bank that fundamentally enables us to dedicate more of our time and resources to the business of banking ... Moving from in-house processing to outsourcing also provides predictable near- and long-term costs, access to core functionality that is consistent with what we had in-house, and on-demand access to an extensive array of integrated complementary products and services. The flexibility and scalability of outsourcing makes our bank more nimble and expedites our responses to customer, market, and competitive demands."

Camden National Corp. executive vice president of operations and Technology Peter Greene said that moving to outsourced processing would give the bank access to infrastructure and processing solutions that would be very difficult for the bank to establish, maintain, and afford on its own.

"[W]e identified an array of benefits that outsourcing would generate for our bank," Greene said. "Among the tangible benefits we identified is the ability for Jack Henry Banking to assume responsibility for a significant part of our business continuity planning and disaster recovery. In addition, we found it challenging to find the in-house talent to support the systems and complex data replication processes that are needed for an institution of our size. Plus the outsourcing environment provides the flexibility and scalability we need to act on growth opportunities in the future."

JHA OutLink Processing Services includes a network of three data centers, four image-enabled item processing centers, 12 training centers, and 11 disaster recovery hot sites.

Read more about outsourcing.