jack henry & associates, inc. a fresh approach to … webinar - jha...2017/06/06 · 1© 2017...

© 2017 Jack Henry & Associates, Inc.®1 © 2017 Jack Henry & Associates, Inc.®

A Fresh Approach to OutsourcingJHA OutLink Processing Services™

Presented by:

Ed Ginn, Consultant | Resource Management Associates, LLC

Jack Henry & Associates, Inc.®

© 2017 Jack Henry & Associates, Inc.®2

Legal Disclaimer: Dates contained in this presentation are

provided as estimates only and can be changed at any time

at the sole discretion of Jack Henry & Associates, Inc. This

information may not be incorporated into any contract and

should not be relied upon in making purchasing decisions.HANK YO FOR THE

OPPORTUNITY TO

SHARE JHA’S STORY


• Introduction

JHA OutLink Processing Services™ Overview

Trends

• Ed Ginn, Consultant | Resource Management Associates, LLC

• Q&A

Agenda Topics


JHA OutLink Processing Services™

• Since 1995

• Over 600 banks

• 140+ Integrated Complementary Products and Services

• Allows you to focus on what’s important – Your Bank


Outlink Over the Last Decade

• 2008 – Financial Crises Hits

• 2010 – Cost Effective Action is Required

• 2012 – Complexity of Products Increases

• 2013 – JHA Hosted Network Systems

• 2015 – Existing $600M fully Outsourced

• 2015 – New Core Footprint fully Outsourced - $3B

• 2017 – Over 50% of our base Outsourced


Resource Management Associates, LLC

Ed Ginn – Principle Consultant


Have you ever heard

a salesman say …

We can save

you money!

Then you wonder …

how they are going to prove that!


Or “The Boss”

returns from a

conference saying …

My friend, Joe,

implemented a

system that saves

a ton of money.

Then you wonder …

how Joe really proved that!


The most important fact

in determining cost improvement

(or cost increase):

Know what the present cost is.

In 40+ years in Banking, and 30+ years in Bank Consulting, not one banker has been able to state their complete core processing cost

on an annual, monthly, or per account basis.


No major decision should be based just on cost, but you should know the cost before making the decision.


True Comparison1. The analysis would address the internal transfer pricing that

actually exist presently (based on direct and indirect costs)

2. The analysis would forecast the proposed transfer price over six

years

3. The easiest unit of measure is “cost per account” per month (loan and/or deposit)

4. Total monthly cost would also be displayed


Migration

Kick off

Online

Meeting

PROJECT PLAN

JHA prepares OutLink proposal

Determine #

of accounts

JHA revised proposal(s)

RMA builds

in-house vs

outsourced

comparisonRMA makes final

presentation

RMA follow-up

for any revisions

RMA builds in-house

cost only model

Determine salary 3 way classification

Determine JHA s/w maintenance

3 way class prepaids

3 way class fixed assets

3 way class expense accounts

Analyze JHA Accounts Receivable report

Analyze Card Processing System

Lots of telephone calls & Go to Meetings

Determine fringe benefits

2 to 3 weeks elapsed time 2 to 3 weeks elapsed time


$400 Million Assets


Other IssuesDR/Business Continuity

Capacity Planning

Custom Processes & Interfaces


Other IssuesAudit & Compliance

Staffing

Mergers & Acquisitions

Releases &Year-end


Regulators Tightening

Standards• Facility security, increase “hardening”

• Alternative sources of power

• Redundant processors

• Redundant staff; no single point of failure

• Encryption of all data paths

• Data backup continuous to alternate site

• Network processing - standards like core

• Vendors are managed at multiple levels


Risk Reduction

A bank considering taking a major

step to reduce risk may significantly

improve their strategy to “Protect

the customer data and the bank’s

assets” by moving to outsourcing.


FAQ’s

1) How many banks have you worked with that are considering

HNS?

2) We are very busy. How much of the bank staff’s time is required to

work on this project?

3) Does outsourcing lead to staff cut backs?

4) Why would we use a consultant that JHA recommended?

5) We can do this ourselves. Why do we need you?

6) Why do we need a different Disaster Recovery process?


Questions?


Contact Information

Ed Ginn, Consultant

Resource Management Associates, LLC

[email protected]

Shelba Murphy, Solution Specialist Manager

Jack Henry Banking®

[email protected]

mailto:[email protected]

mailto:[email protected]

jack henry & associates, inc. a fresh approach to … webinar - jha...2017/06/06 · 1© 2017...

Documents