Jack Henry Strategy Benchmark

Read the Jack Henry survey here.

Here is a brief summary:

• Growing deposits is the top strategic priority for all financial institutions in 2024 and 2025.
• Improving operational efficiency is the second and third top priority for banks and credit unions.
• 80% of all financial institutions plan to increase technology spending over the next two years, with credit unions being more bullish on budgets.
• Fraud detection and mitigation, digital banking, and data analytics are the top three technology investments planned over the next two years.
• Net interest margin (NIM) compression and deposit attrition/displacement are the top two concerns for banks and credit unions.
• For banks, NIM is the key performance metric for 2024 and 2025, while credit unions focus more on return on assets (ROA).
• 92% of financial institutions plan to embed fintech into their digital banking experiences, with payments fintechs being the majority.
• Plans to launch Banking-as-a-Service (BaaS) business lines have been significantly tempered by increased regulatory scrutiny and related compliance costs introduced in 2023.
• 90% of financial institutions plan to serve a niche market over the next two years, with banks and credit unions targeting businesses.