Jack Henry & Associates Inc at UBS Global TMT Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Rayna Kumar - UBS - Analyst : Well, great. So to start off, David, if you can provide us an update on how you think financial institution IT spending, is going to trend for 2022? And what do you think are going to be the biggest areas of spending for banks and credit unions next year?

Question: Rayna Kumar - UBS - Analyst : That's great. So you've been really successful with Banno and now you're going after the customers that are noncore customers. And I'm wondering, are you able to move upmarket with Banno at this point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 08, 2021 / 2:00PM, JKHY.OQ - Jack Henry & Associates Inc at UBS Global TMT Conference (Virtual)

Question: Rayna Kumar - UBS - Analyst : So maybe give us like an idea of the timeline of like those potential wins with noncore clients.

Question: Rayna Kumar - UBS - Analyst : Got it. Let's just talk about inflation for a second. So of course, seeing rising inflation in recent months. Do you see this as a benefit to your business? And do you have CPI clauses in your contracts that could help with pricing next year?

Question: Rayna Kumar - UBS - Analyst : Great. So if anyone has any questions for David, feel free to type it into the chat box and I will read them out loud. In the meantime, I'll keep going on with my question list. So David, we often hear about newer cloud-based core providers coming into the market trying to gain share in the U.S. Are you seeing this when you go out to make bids on new contracts? And could you maybe talk a little bit about how Jack Henry's technology compares to some of these newer players out there?

Question: Rayna Kumar - UBS - Analyst : Understood. So you recently completed your payments platform migration. Maybe just help us better understand how that benefits your cost base and to what extent it helps you sell more payment processing capabilities.

Question: Rayna Kumar - UBS - Analyst : Great. All right. So we have 2 questions coming from the audience. I'll read them out loud to keep things interesting. So how long is your First Data contract? Any risk of it not renewing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 08, 2021 / 2:00PM, JKHY.OQ - Jack Henry & Associates Inc at UBS Global TMT Conference (Virtual)

Question: Rayna Kumar - UBS - Analyst : Understood. All right, question 2. You mentioned a robust API layer. Can you talk about how Jack Henry monetizes a situation where another financial institution -- where another institution is connecting to your API?

Question: Rayna Kumar - UBS - Analyst : Got it. Okay. So the big question I always get in payments, and you're right in the middle of this, if you're going to have a good answer for me. But are you seeing consumer spending behavior change? Are you seeing more consumers moving away from card-based payments over to paying with ACH?

Question: Rayna Kumar - UBS - Analyst : Fair. So to your point that you're not a merchant acquirer, that brings me to my next question. Two of your competitors are now merchant acquirers, do you want to become a merchant acquirer over time?

Question: Rayna Kumar - UBS - Analyst : Understood, very clear. So not interested in acquiring, but tell me about the acquisitions you would be interested in. What -- where do you want to expand? What do you want to do next?

Question: Rayna Kumar - UBS - Analyst : Got it. Okay. So you have multiple core solutions. You have SilverLake, Episys, Symitar and 20/20, any opportunity there to consolidate solutions over time and create more efficiencies in the business? Or do you view offering several core system offerings as essential to running the business? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 08, 2021 / 2:00PM, JKHY.OQ - Jack Henry & Associates Inc at UBS Global TMT Conference (Virtual)

Question: Rayna Kumar - UBS - Analyst : Got it. It's really good detail. So for 2022, what would you highlight as your top 3 areas of investments?

Question: Rayna Kumar - UBS - Analyst : Got it. All right. So we do have a few more questions coming from the audience. So also reading those out. Do you run into Q2 in the digital banking space, any share shifts there?

Question: Rayna Kumar - UBS - Analyst : Great. All right. Next question. Are you able to incorporate blockchain technology into your core systems?

Question: Rayna Kumar - UBS - Analyst : Got it. Okay. Can you talk about bank formation and/or consolidation? And how do you think that will impact Jack Henry over the next year? When a client gets acquired, how often do you win?

Question: Rayna Kumar - UBS - Analyst : Got it. Well, as we get to the last few minutes of our conversation, I'll ask you one final question. What excites you the most about Jack Henry's opportunities going forward? And what concerns you the most?

Question: Rayna Kumar - UBS - Analyst : Well, David, it was a pleasure having you today. Thank you for participating. To everyone else, thanks for watching, and have a great day.