Business
Jack Henry Launches Online Marketplace to Improve How Financial Institutions Can Buy, Sell, and Participate in Commercial Loans
Jack Henry Loan Marketplace provides a centralized, digital community for financial institutions to easily diversify commercial assets and manage portfolio
About this update from Jack Henry & Associates, Inc.
[{"type":"text","content":"Jack Henry Loan Marketplace provides a centralized, digital community for financial institutions to easily diversify commercial assets and manage portfolio risk\n\n\nMONETT, Mo., Aug. 12, 2020 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Today, Jack Henry Lending introduced the Jack Henry Loan MarketplaceSM, an online community for financial institutions to easily engage in the buying, selling, and participation of loans. \nFinancial institutions have long needed a more efficient, cost effective way to manage their loan portfolios, whether that be for asset diversification or reallocating credit risk. Today's unique environment particularly calls for solutions that assist banks and credit unions with the strategic distribution of loans, finding new liquidity, or divesting away from a particular asset concentration. The Jack Henry Loan Marketplace provides unbiased access to opportunities from financial institutions across the country. It centralizes communications and transactions related to the purchase, sale, and trade of these loans, plus directly connects counterparties to eliminate the need for a broker.\nMichael Radcliffe is CEO of Community Financial Services Bank, based in Benton, Kentucky. He explained that the $1.2 billion-asset bank, like many organizations of a similar size, has different resources than larger lenders and can be challenged to source liquidity. Radcliffe commented, \"With the Jack Henry Loan Marketplace, we gain a network of like-minded peers who want easier, smarter ways to manage our existing portfolios. We tend to be niche lenders, tailoring our relationships to available deals in our local markets. Through this online community, we have immediate options to buy or sell certain types of credits and more easily diversify if a concentration is building in our portfolio. It will be a smoother, faster process that can be done on our time.\"\nThe Jack Henry Loan Marketplace allows loans to be presented as single transactions or pooled together and can accommodate any lending asset class. The digital format reduces document transfer from weeks to a day, sometimes minutes. Marketplace participants gain a transparent process that provides an audit trail of all buying,...