#United States #Jack Henry #Monett #Bits of Stock #fractional shares

Jack Henry Partners with Bits of Stock

In a significant move to reshape wealth management services, Jack Henry™ (Nasdaq: JKHY) has officially announced a strategic alliance with Bits of Stock. This collaboration enables banks and credit unions to offer fractional shares of stock as rewards for everyday transactions, bridging the gap between traditional banking and modern investment tools. By incorporating this capability into the Banno Digital Platform™, routine card transactions can now serve as pathways for wealth-building opportunities for account holders.

Transforming Transactions into Wealth Building

With the embedded loyalty and rewards platform from Bits of Stock, consumers can establish free investment accounts directly through their financial institution. This feature eliminates the need for separate applications or accounts, allowing account holders to easily build personalized stock portfolios. Jack Henry’s vision centers on making banks and credit unions the primary access points for all financial needs, ultimately attracting and safeguarding deposits.

The integration has been shown to foster deeper relationships between financial institutions and new generations of consumers. Reports from Bits of Stock indicate that users of the investment platform are likely to see increases in their account balances, with some experiencing as much as 40% growth within a year. This new approach to banking transforms what used to be mere transactional relationships into enriching opportunities for long-term wealth building.

Effective Rewards Strategy

Furthermore, research from a study commissioned by Bits of Stock and conducted by NYU Stern reveals that fractional stock rewards can be 34 times more effective than cash rewards in boosting customer spending per dollar of reward. This finding emphasizes the value of integrating investment opportunities into everyday financial activities, thereby promoting healthier financial habits amongst consumers.

Jack Henry’s alignment with Bits of Stock reflects an ongoing commitment to empowering customers with better control over their finances and enhancing their overall financial health. Erica Pilon, head of Corporate Strategy at Jack Henry, noted, "There is growing demand, especially from younger consumers, for investment products that enable trading in small, incremental amounts. This offering helps banks reach new investors by providing accessible investment tools from a trusted financial institution."

Real-World Impact on Credit Unions

An example of this new concept in action is Credit Union One of Oklahoma, which recently launched a multi-tier checking account system incorporating Bits of Stock's offerings. The account tiers range from basic, featuring round-up options for free accounts, to premium accounts that issue 1% stock rewards on all purchases.

Tyrel McCain, President and CEO of Credit Union One, expressed enthusiasm about the member response during testing, leading to the decision to include stock investing capabilities in each checking account tier. He stated, “It creates a natural progression where members can start with free entry points and graduate to earning stock rewards as they deepen their relationship with us. It’s driving new account openings and generating fee income, all while aiding our members in building wealth through everyday spending.”

About Jack Henry & Associates, Inc.

Jack Henry™ is a comprehensive financial technology company dedicated to enhancing connections between financial institutions and their customers. Being a part of the S&P 500, Jack Henry prioritizes user experience, transparency, and collaboration. For nearly five decades, the company has delivered technology solutions that enable their approximately 7,400 clients to innovate and strategically differentiate themselves. Jack Henry remains focused on reducing barriers to financial health through people-inspired innovations and data-driven solutions.

As this collaboration evolves, the emphasis on integrating investment options into everyday financial products signals a transformation in how financial institutions engage with their customers. Through these innovative steps, both Jack Henry and Bits of Stock are setting a new standard in the financial services industry — one that encourages savings, investment, and financial wellness for all.