Jack Henry Cuts Financial ‘Fragmentation’

Financial tech services firm Jack Henry is expanding its partnership with Mastercard to enable credit unions and banks to provide their account holders with the ability to securely see all their financial accounts in one place. The aim of the effort is to reduce consumer confusion brought about by financial “fragmentation” that results from use of multiple accounts.

Jack Henry will provide a consolidated view of data through Mastercard’s open banking platform to help enable consumers and businesses to make more informed financial decisions, and place community and regional financial institutions at the center of their account holders’ financial lives.

“By working with industry leaders like Mastercard, we’re helping the community and regional financial institutions become the hubs of the fintech ecosystem, and we are providing accountholders with safer, comprehensive access to their data and finances,” said Ben Metz, chief digital & technology officer at Jack Henry, during a recent presentation.

“Overall, it’s a pivotal improvement in banks’ and credit unions’ digital front door experience,” he said.

This partnership will also simplify account opening, streamline account funding, and significantly advance Jack Henry’s lending capabilities, Metz added.

Users – specifically those in the younger demographic – typically do business with several different financial providers, which can make it difficult for them to track finances.

According to a report by the Financial Health Network, consumer financial health declined in 2022. The report estimates that 176 million Americans – totaling 70 percent of the population – are not financially healthy, and 80 percent of consumers want their financial institutions to help them improve that status.

This collaboration allows financial institutions to offer users secure access to external providers and financial data – consolidating, categorizing, and enriching that data in a simplified digital experience. That can give financial institutions the ability to empower account holders with a complete view of their financial lives.

“Together with Jack Henry, we can drive innovation and financial inclusion at scale, enabling community and regional financial institutions to maintain their competitive advantage of service and trust,” Jess Turner, executive vice president of Global Open Banking and API at Mastercard, said in a press release.

“This is a big step toward reducing financial fragmentation by providing people with a real-time picture of their financial health through their bank or credit union,” Turner said.