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Mid-Tier Banks Migrate From In-house Processing To Outsourcing

MONETT, Mo., Aug. 29, 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 Jack Henry Banking ® division announced today that two long-time mid-tier banks – Maine-based Camden National Corporation and Missouri-based Midwest BankCentre – are among the 25 core bank clients electing to migrate from in-house processing to outsourcing during the company's fiscal year 2013, which ended June 30.

Midwest BankCentre

Dale Oberkfell, executive vice president and CFO of Midwest BankCentre, said, "Migrating to outsourcing was a very strategic decision for our bank that fundamentally enables us to dedicate more of our time and resources to the business of banking. Managing complex and dynamic technology and all the mission-critical components like security and capacity planning is a core competency of Jack Henry Banking, so we were extremely comfortable entrusting them with our information and transaction processing. Moving from in-house processing to outsourcing also provides predictable near- and long-term costs, access to core functionality that is consistent with what we had in-house, and on-demand access to an extensive array of integrated complementary products and services. The flexibility and scalability of outsourcing makes our bank more nimble and expedites our responses to customer, market, and competitive demands."

Camden National Corporation

According to Peter Greene, Camden National Corporation's executive vice president of Operations and Technology, "Moving from in-house processing to Jack Henry Banking's outsourced offering enables our bank to leverage an operations infrastructure and processing environment that  would be very difficult for a bank to establish, maintain, and afford on its own. After a thorough due diligence process that compared the expense and operational aspects of in-house processing vs. outsourcing, we identified an array of benefits that outsourcing would generate for our bank. Among the tangible benefits we identified is the ability for Jack Henry Banking to assume responsibility for a significant part of our business continuity planning and disaster recovery.  In addition, we found it challenging to find the in-house talent to support the systems and complex data replication processes that are needed for an institution of our size.  Plus the outsourcing environment provides the flexibility and scalability we need to act on growth opportunities in the future."

Stan Viner, general manager of sales for Jack Henry Banking, said, "Outsourcing is becoming the preferred delivery method for technology in the financial services industry and there are a wide variety of considerations driving in-house banks to consider outsourcing. JHA OutLink Processing Services™, our turnkey outsourced offering, positions Jack Henry Banking as a seamless extension of a bank's operations. Diverse banks can leverage the extensive experience we have gained from serving approximately 600 banks, ranging from community banks to multi-billion dollar mid-tier institutions, with our outsourcing services. Through strategically located data and item processing centers we provide highly customized processing solutions that can seamlessly support our clients' evolving business strategies and operating environments."

JHA OutLink Processing Services has a national presence that includes a network of three data centers, four image-enabled item processing centers, 12 training centers, and 11 disaster recovery hot sites.

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