© 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
© 2017 Jack Henry & Associates, Inc.®3
• Introduction
JHA OutLink Processing Services™ Overview
Trends
• Ed Ginn, Consultant | Resource Management Associates, LLC
• Q&A
Agenda Topics
© 2017 Jack Henry & Associates, Inc.®4
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
© 2017 Jack Henry & Associates, Inc.®5
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
© 2017 Jack Henry & Associates, Inc.®6
Resource Management Associates, LLC
Ed Ginn – Principle Consultant
© 2017 Jack Henry & Associates, Inc.®7
Have you ever heard
a salesman say …
We can save
you money!
Then you wonder …
how they are going to prove that!
© 2017 Jack Henry & Associates, Inc.®8
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!
© 2017 Jack Henry & Associates, Inc.®9
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.
© 2017 Jack Henry & Associates, Inc.®10
No major decision should be based just on cost, but you should know the cost before making the decision.
© 2017 Jack Henry & Associates, Inc.®11
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
© 2017 Jack Henry & Associates, Inc.®12
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
© 2017 Jack Henry & Associates, Inc.®16
Other IssuesDR/Business Continuity
Capacity Planning
Custom Processes & Interfaces
© 2017 Jack Henry & Associates, Inc.®17
Other IssuesAudit & Compliance
Staffing
Mergers & Acquisitions
Releases &Year-end
© 2017 Jack Henry & Associates, Inc.®18
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
© 2017 Jack Henry & Associates, Inc.®19
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.
© 2017 Jack Henry & Associates, Inc.®20
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?
© 2017 Jack Henry & Associates, Inc.®22
Contact Information
Ed Ginn, Consultant
Resource Management Associates, LLC
Shelba Murphy, Solution Specialist Manager
Jack Henry Banking®