MONETT, Mo., Aug. 22, 2013 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars ® division today announced that $9.1 billion Great Western Bank expanded the BusinessManager ® program from a single market to four regions. In one year, the South Dakota-based bank serving seven states has more than doubled its number of BusinessManager customers, nearly tripled its outstandings to $35 million, and generated twice the program's revenue compared to the year prior.
Great Western Bank initially deployed ProfitStars' accounts receivables financing solution to Omaha-area businesses more than 10 years ago. The bank runs a tight return on equity (ROE) model, and 15 percent of its loans must achieve a high ROE rating. In re-evaluating growth measures, it saw BusinessManager's ability to attract a wealth of commercial customers and maintain high ROE thresholds. Great Western initiated an aggressive campaign in May 2012 to broaden the program into some of its additional geographic markets. BusinessManager has now become an integral part of the scorecard to reach the bank's ROE goal.
Kevin Petoske, business product manager of Great Western Bank, said, "BusinessManager has proven effective for both new businesses needing early, consistent cash infusion and veteran companies looking to expand. It has become an invaluable customer acquisition tool to the entire bank, and critical to the strength of our lending portfolio. Our once single-market, equipment financing program is now a multi-region revenue driver accommodating the cash flow needs of diverse businesses."
BusinessManager provides financial institutions with a proven method for offering initial and ongoing cash to creditworthy businesses secured by their accounts receivables. Financial institutions have significant opportunity to tap into the needs of targeted markets such as healthcare, oil and gas, and trucking.