MONETT, Mo., Feb. 12, 2013 /PRNewswire/ -- Jack Henry & Associates Inc. (NASDAQ:JKHY), a leading provider of technology solutions and payment processing services primarily for the financial services industry, introduced today prepaid cards, a comprehensive solution that enables banks and credit unions to offer a high-demand financial product that generates new sources of non-interest income. TransCard®, the leading provider of prepaid products to financial institutions, will provide operational support and customizable marketing materials.
The company's Jack Henry Banking®, ProfitStars®, and Symitar® divisions will sell the solution that enables financial institutions to offer payroll cards, reloadable prepaid cards, and gift cards that generate additional revenue from commercial and retail customers, while attracting new customers from the underbanked and unbanked market segments. Banks and credit unions leveraging the solution hold the deposits, share in the interchange income, and set their own pricing, which generates cardholder fee income. The quick-to-market solution can be fully deployed in as little as 90 days.
Topeka, Kan.-based CoreFirst Bank & Trust had been investigating prepaid payroll solutions since its state statute changed to allow employers to use payroll cards as the alternative payment method to direct deposit. The bank elected to deploy the Jack Henry & Associates/TransCard solution to meet its market and customer demand.
Kim Rees, senior vice president and director of treasury management services for CoreFirst Bank, explained, "We needed to help our customers overcome the perception that business products like our prepaid payroll solution should be free. Thanks to the marketing and education materials provided, we have successfully launched the service and will be expanding our efforts in the beginning of 2013. At CoreFirst Bank, our customers rely on us to compete with the Wal-Mart's of the world, and ProfitStars, working together with TransCard, is making that happen."
According to David Foss, president of ProfitStars, "Today's banks and credit unions are competing against a variety of non-traditional providers of highly competitive financial products and services for both commercial and retail customers. Our new prepaid card solution enables financial institutions of all sizes to efficiently and aggressively compete with this high-demand offering which ultimately expands wallet share and improves customer loyalty. Through our partnership with TransCard, we have a proven solution for increasing deposits and fee income, while protecting the institution from cardholder fraud."
Chattanooga-based TransCard is the leading provider of prepaid products to financial institutions of all sizes. The company's platform enables financial institutions to grow deposits and fee income, deepen their treasury relationships, expand product offerings to the underserved, and turn unprofitable customers from cost items to contribution items.
As a diverse, global division of Jack Henry & Associates, ProfitStars combines JHA's solid technology background with the latest breakthroughs in five performance-boosting solution groups — Financial Performance, Imaging and Payments Processing, Information Security and Risk Management, Retail Delivery, and Online and Mobile. Explore the power of ProfitStars-enhanced performance at www.profitstars.com.
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of computer systems and electronic payment solutions primarily for financial services organizations. Its technology solutions serve more than 11,900 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community to mid-tier institutions with information processing solutions. Symitar® is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control
risks, optimize revenue and growth opportunities, and contain costs. Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.
SOURCE Jack Henry & Associates