Background
Jack Henry’s Open API Strategy is an classic example of a Two-sided market1.
For our team, the Digital Toolkit brings together two different groups that want to do business through the Banno Digital Platform:
- Financial Institutions (FIs)
- Fintechs
The bottom line is that Jack Henry’s bottom line is better when it can build up both sides of the market. Having a greater number of FIs and Fintechs means greater opportunities for Jack Henry to grow its business.
FIs
There are over 4,000 banks2 and over 5,000 credit unions3 in the USA.
Jack Henry has hundreds of community banks and credit unions on the Banno Digital Platform, with more being added every month.
Remember, a Fintech has to decide if it is worth the effort to build on our platform.
As you might expect, having an ever-growing list of FIs makes Banno more attractive for Fintechs. A larger number of FIs equals a greater number of opportunities for Fintechs to sell their product.
Fintechs
View of the Fintech World
View of the Fintech World, from Plinqit’s perspective
View of the PFM (personal financial management) landscape 4
Cornerstone Advisors - Diversity in Fintechs
There are over 10,000 Fintechs5 in the USA.
Jack Henry has over 100 Fintech integrations6 on the Banno Digital Platform.
There are many decisions, both major and minor, that spur an FI to choose Jack Henry’s products and services. It has taken a while, and there is still a long way to go, but FIs are beginning to understand the possibilities that open banking7 offers for their business.
As you might expect, having an ever-growing list of Fintechs makes Banno more attractive for FIs. A larger number of Fintechs equals a greater number of opportunities for FIs to attract and maintain a greater slice of their customers’ financial lives.