Jack Henry Announces Partnership With Open Banking Firms

The payments processing service company Jack Henry & Associates says that three open banking platforms are the first in their industry to integrate into its Banno Digital Platform.

The Missouri company announced on Tuesday (Oct. 12) that Finicity, Akoya and Plaid would begin using the Banno Digital Toolkit, which Jack Henry acquired in 2014.

“This provides better security, privacy and transparency for the nearly six million consumers banking with the Banno Digital Platform by removing screen scraping,” Jack Henry said in a news release.

“Consumers now have access to a complete financial picture through their financial institution (FI), without having to provide credentials to third parties at the risk of their own privacy,” the release said. “Instead, these integrations allow consumers to grant permission, along with the option to later revoke it, to data that they want to share with third parties via their financial institution.”

The company says the Banno toolkit lets FIs leverage the same API layer the Banno Digital Platform uses to create and customize their own FinTech solutions. This toolkit, they say, is better than a traditional software development kit, as it provides “endless” innovation possibilities and efficiency via a fully integrated back-office support system.

Read more: Jack Henry Expands Autobooks Alliance With Banno Integration

The new integrations include Mastercard’s Fincity, a company that reaches more than 95% of American direct deposit accounts, enables businesses and consumers to connect, and allows the use of financial data across a range of services and apps.

Akoya gives FIs a scalable method of offering API-based data access and consent permissioning tools by eliminating the need to create and oversee multiple API relationships with FinTechs and data aggregators.

And Plaid provides secure connections between consumer financial accounts and more than 5,500 applications, with a network that includes more than 11,000 FIs.

The new partnership comes months after Jack Henry announced an expanded partnership with Autobooks, a move that made the company the first major FinTech firm to incorporate receivables tools as a regular digital banking tool.