US-based fintech company Jack Henry has announced that it will contribute to the launch of the Federal Reserve ’s payment network, the FedNowSM Service. Jack Henry is operationally ready to be part of the companies that will enhance the launch of the new FedNowSM Service, the Federal Reserve’s real-time payment network.

The company participated actively in the development process of the new network, which is currently expected to launch in July of 2023. According to the press release, multiple Jack Henry clients and customers will participate in supporting the pilot launch, as well as being an early adopter programme. FedNow represents an instant payments network that was designed to move funds directly and immediately between financial institution accounts from the United States.

The network was set to support multiple use cases initially while serving as a platform that banks and credit unions will have the possibility to leverage in order to develop innovative payment solutions. These will be used to improve the evolving instant payment needs and additional use cases. Furthermore, Jack Henry developed its JHA PayCenter, a proprietary faster payments hub, aimed to be leveraged to connect financial institutions to the Zelle Network, the RTP Network, and now the FedNow Service.

While using JHA PayCenter’s integration architecture, the FedNow Service will be able to connect Jack Henry’s core and digital solutions to faster payment networks. Moreover, it will offer clients the possibility to leverage it in order to connect third-party core and digital platforms. The companies aim to offer clients and users the possibility to modernise their payment strategies and platforms, with real-time payments solution or services that allow them to remain at the center of the payment process, as well as to reduce payment friction and financial fragmentation.

Jack Henry’s past partnership and launches The US-based financial technology firm Jack Henry had multiple partnerships and launches in the last couple of months, covering multiple geographies. In January 2023, Jack Henry enlarged its credit card offering with the Agent Credit Card Programme provided by The Independent BankerBank (TIB). Following this announcement, banks and credit unions were able to utilise Jack Henry for its full-service credit processing or perform most of their card functions in-house, as well as to connect to the card networks through Jack Henry.

With the use of TIB’S Agent Credit Card Programme, financial institutions (FIs) were also given the possibility to issue credit cards without many of the common barriers that have deterred them from providing customers with these types of tools, including fraud, the financial areas, and operational risks. Earlier in the same month, self-service loan management software fintech Constant launched its zero-processing loan servicing products and solutions, which were made accessible via Jack Henry’s digital banking platform. In an effort to expand digital solutions, many financial institutions added online applications that are designed to operate and work in the back office.

When borrowers were not able to solve their problems with self-service, they were set to appeal to perform live customer service calls, thereby reportedly driving up operating costs. Constant aimed to establish a self-service strategy that sought to focus on resolution, so borrowers were able to complete transactions without the need of engaging more expensive live channels. The foundation of the strategy was designed on access to the Banno Digital Platform of Jack Henry.

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