Jack Henry & Associates JKHY gears up for launching a financial crimes platform named Jack Henry Financial Crimes Defender.
JKHY equipped the platform’s analytics engine with the globally largest RiskOps platform called Feedzai.
With the Financial Crimes Defender platform, Jack Henry aims to provide financial institutions with advanced technological capabilities, including artificial intelligence and machine learning. This will help them detect fraud across all channels, protect their businesses and secure their accountholder’s financial wellbeing.
Further, the launch of the financial crimes platform will be in sync with JKHY’s strong focus on building cloud-native solutions to aid banks and credit unions to handle business opportunities and challenges faster and in a seamless manner.
Thus, the recent initiative will help Jack Henry gain momentum among financial institutions, which in turn, will contribute to its top-line growth in the days ahead.
In addition, this will continue to buoy investor optimism on the stock in the days ahead.
JKHY generated $1.9 billion revenues in fiscal 2022, up 11% on a year-over-year basis.
Shares of Jack Henry have been up 19.8% in the year-to-date period against the Computer and Technology sector’s decline of 24.5%.
Jack Henry & Associates, Inc. Price and Consensus
Jack Henry & Associates, Inc. price-consensus-chart | Jack Henry & Associates, Inc. Quote
Efforts to Boost Prospects
On the back of the Financial Crimes Defender platform, JKHY will remain well-poised to capitalize on the prospects in the fraud detection and prevention market.
The underlined market is witnessing significant growth in recent times owing to growing demand for fraud detection and protection services. This is because companies across various sectors are adopting IoT-based technologies, which are susceptible to cyber-attacks and frauds.
Also, the coronavirus-driven digitization boom spiked the number of fraudulent activities, thus driving the market.
Per an Acumen Research and Consulting report, the aforesaid market is expected to reach $176 billion by 2030, seeing a CAGR of 23.4% during the 2022-2030 forecast period.
The same market is likely to hit $241.2 billion by 2031, witnessing a CAGR of 23.8% from 2022 to 2031, per an Allied Market Research report.
Robust Portfolio of Solutions
Jack Henry’s recent plans to introduce a financial crimes platform bode well for its growing efforts toward bringing innovative technological solutions to financial institutions.
Apart from the recent initiative, JKHY signed an agreement to take over the digital payments company Payrailz to strengthen its payment portfolio.
Additionally, Jack Henry Lending launched a powerful digital solution named FactorSoft Web Portal that provides near real-time servicing to lenders anytime and anywhere.
This apart, JKHY released agricultural industry-spreading models to aid financial institutions in seamlessly processing agricultural loans.
Jack Henry also introduced SecurePort for banks to help customers access account balances and funds, and protect the same in times of crisis.
Zacks Rank & Stocks to Consider
Currently, Jack Henry carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like Arista Networks ANET, ASE Technology ASX and Monolithic Power Systems MPWR. While Arista Networks sports a Zacks Rank #1 (Strong Buy), ASE Technology and Monolithic Power Systems carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has lost 12% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 18.6%.
ASE Technology has lost 22.4% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.
Monolithic Power Systems has returned 4.2% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.
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