Jack Henry & Associates, Inc. (NASDAQ: JKHY), a provider of tech solutions and payment processing services mainly for the financial services sector, announced that it is teaming up with Early Warning Services, LLC, the network operator behind Zelle, in order to make faster payments “more readily available for minority-owned depository institutions (MDIs).”
The firms are providing a rebate program through June 30, 2022 to MDIs nationwide, enabling them to easily 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 reportedly “encouraged to join 255 institutions currently contracted to leverage the Zelle Network® through Jack Henry to help consumers expedite payments.”
Available at more than 1,000 financial institutions, Zelle serves as “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 are able to lower operating expenses by digitizing transactions, “create more cross-selling and revenue opportunities, and attract and retain convenience-driven customers,” the announcement noted.
Lou Anne Alexander, Chief Product Officer of Early Warning, stated:
“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, VP of payment solutions at Jack Henry, remarked:
“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),” the announcement noted.
As previously reported, Early Warning Services, LLC is a Fintech that is owned by seven of the nations largest banks. For nearly 30 years, their identity, authentication and payment solutions have been “empowering financial institutions to make confident decisions, enable payments and mitigate fraud.”
Early Warning is best known for being the owner and operator of the Zelle Network, a financial services network “focused on transforming payment experiences.” The combination of Early Warning’s risk and payment solutions “enable the financial services industry to move money fast, safe and easy, so people can live their best financial lives.”