Jack Henry expands credit card offering with Agent Program provided by TIB, the nation’s largest bankers’ bank
Jack Henry recently announced that it was expanding its credit card offering with the Agent Credit Card Program provided by TIB, N.A.. The partnership will enable many community financial institutions to issue credit card services for the first time.
Farmers Branch, Texas-based TIB has more than $2.5 billion in assets and is the nation's largest bankers' bank, based on both total assets and the number of clients. The bank provides correspondent banking products and services to nearly 1,400 independent community banks of every size across the United States and the territory of Guam.
Historically, many community financial institutions have refrained from offering credit card programs due to financial, fraud, and operational risks. However, credit card programs are a primary source of recurring revenue for financial institutions and a high-demand service that can enhance customer satisfaction and competitiveness in the market. Jack Henry and TIB determined this was an area they could help in and decided to launch an Agent Credit Card Program operated entirely by TIB, under the financial institution’s brand.
Jack Henry already offers full-service credit processing and in-house credit processing programs that enable financial institutions to perform most of their card functions in-house and connect to the card networks. However, these programs come with high complexities and might not be a strategic fit for all community financial institutions. An agent credit card program is an easier alternative option. And, Jack Henry allows financial institutions to purchase and transition agent portfolios to an in-house, self-managed environment if card programs and business strategies evolve.
The new Agent Credit Card Program removes many of the barriers stopping community financial institutions from offering credit card services, adding additional revenue streams, and saving costs associated with hiring consultants, training employees, and marketing. It also lowers risks and increases operational efficiencies, by removing the need for the institution to set up, configure, monitor, and onboard a credit card program. Additionally, the program allows for higher approval and card usage rates due to the relationship-based underwriting process.
“TIB was the right bank for us to expand our credit card offering with – we operate in the same markets, have similar philosophies from a business standpoint, and care deeply about helping financial institutions and the communities they serve,” said Tede Forman, president of Jack Henry Payment Solutions. “In a highly competitive and volatile market environment, our new Agent Credit Card Program provided by TIB generates additional revenue streams for community financial institutions and helps them better compete with larger institutions and fintech, while meeting their clients’ needs.”
Once a Jack Henry customer indicates they are interested in a credit card offering, Jack Henry evaluates the needs of the institution and if an agent program is suitable, refers the institution to TIB who leads the process from there on (i.e., underwriting, front-end heavy lifting, etc.). The implementation timeline looks different for each institution, depending on its size and the characteristics of its previous credit card program.
The new, core-agnostic Agent Credit Card Program is available now.