More than 200 credit unions and banks are now live or in the process of implementing Rapid Transfers, a cloud-native solution from Jack Henry that enables financial institutions to offer fast "me-to-me" money movement for consumers and small- and medium-sized businesses.
Developed in collaboration with payment processor Moov, the solution integrates with Visa Direct and Mastercard Move to use debit card rails, the card-network infrastructure that allows funds to move near real time, for transferring funds from external financial institutions, neo-banks, brokerages and cryptocurrency exchanges into primary bank or credit union accounts. Offered through financial institutions, Jack Henry Rapid Transfers is part of the Jack Henry Platform and intended to expand digital money movement capabilities as demand for faster payments continues to grow.
Rapid Transfers began rolling out in September and is live with 65 financial institutions with another 170 in various stages of implementation, according to a released statement. It is integrated into the Banno Digital Platform, Jack Henry's digital banking solution that serves more than 1,000 financial institutions and more than 15 million registered users.
"It's a new way to transfer funds," Erica Pilon, head of strategy at Jack Henry, said. "What we've built is unique because it's in real time. It's game-changing. Money can move instantly between accounts. We are doing this for all Jack Henry Banno customers and we are building a plug for those are not on Banno."
Pilon said there is a tremendous need for the system "because it doesn't exist. Everyone has to do ACH where you have to wait."
Pilon explained that other digital payment networks, such as Zelle or Venmo, are tied to an email address or telephone number, while Rapid Transfers uses a debit rail. Anyone who has a debit card can use Rapid Transfers, she said.
"Gen Z's preference for debit is a defining shift for our industry," Abby Wood, assistant vice president of digital at Jack Henry, said. "Rapid Transfers doesn't just help reverse deposit attrition and deepen existing accountholder relationships, it gives banks and credit unions the strategic ability to attract and retain the generations that will drive future growth."
Adam Serio, vice president of information security and technology at the $178 million Magnolia Federal Credit Union in Jackson, Miss., said his institution launched Rapid Transfers to capture more deposits.
"We do a lot of lending in this area, so we are using Rapid Transfers to drive more membership and deposit growth," Serio said, noting the solution's ease of implementation and use. "Our members love it because of the convenience and instant nature of the transaction."
Wade Arnold, CEO and co-founder of Moov, said Rapid Transfers benefits both financial institutions and their accountholders.
"When accountholders can instantly pull funds from fintechs and digital wallets into their primary bank account, everybody wins," Arnold said. "Rapid Transfers turns community financial institutions into the hub of their customers' financial lives, not the spoke."
Jack Henry has provided technology solutions to financial institutions for nearly 50 years and currently serves about 7,400 clients.
Joyce Moed can be reached at joyce.moed@arc-network.com.
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