data strategy and AI in financial services: building for the future with Jack Henry^®

Executive Summary

• AI and data strategies enable you to compete more effectively, increase efficiency, and strengthen relationships with your accountholders.
• By unifying data and leveraging modern AI technologies, you can unlock new opportunities, enable personalization, and stay ahead of threats.
• With AI-powered tools and integrated data solutions from Jack Henry, you can make stronger decisions, prevent fraud, and enhance operational efficiency and service. 

compete on a level playing field

The financial services industry is undergoing significant changes, with AI at the forefront.

According to Bank Director’s 2025 Technology Survey, most banks have taken initial steps in response to the growing prevalence of AI technologies, including drafting an acceptable use policy for AI (66%) and experimenting with AI in limited use cases (62%). While these are positive steps, only 25% said they’ve trained employees on the use of AI, including generative AI.

This gap between planning and action presents an opportunity for you to enhance efficiency and differentiate yourself.

While larger banks may have bigger budgets, prices for integrated AI features in tech platforms and AI assistants have significantly decreased. Your staff can leverage AI in ways that enhance your unique strengths: building trusted, personal relationships with accountholders.

By planning now to strategically adopt AI in ways that make sense for your financial institution, you can offer a blend of technology and human connection that larger financial institutions, fintechs, and non-bank competitors may struggle to replicate.

To help you stay competitive and avoid falling behind, this eBook explores why banks and credit unions of every size need a defined approach to data, and how AI can be used to help you grow relationships, fight fraud, and make better business decisions.

the data gap

You don’t know what you don’t know.

This saying takes on a whole new meaning when it comes to data … because you can’t act on what you don’t know.

Bank Director reports 33% of banks indicate one of their biggest challenges is their inability to use data effectively. Lee Wetherington, Senior Director of Corporate Strategy at Jack Henry, notes in a recent interview, “for [financial institutions] to make the most of AI, they’ve got to have the requisite data to execute on the most compelling use cases.”

Many financial institutions may be missing out on critical insights and the ability to fully leverage AI technologies simply because they lack the right tools to aggregate and fully utilize the data they do have.

The first thing you can do is get your internal data house in order by taking siloed data and unifying it in the form of a data warehouse. Then, you’re ready to feed it to an AI model, ML algorithm, and AI agents.

Critical data questions you should be asking:

• Do we have the data needed to power key use cases and deliver accountholder value?
• Where are the gaps?

Open banking helps close data gaps by providing access to external accountholder financial data. With minimum viable data (MVD), you can unlock insights, accelerate innovation, and create more personalized experiences.

harnessing AI for competitive advantage

AI-augmented technologies level the playing field, helping you compete more effectively by moving beyond legacy systems, unlocking the full potential of your data, and driving key outcomes like:

• Data-Driven Decision Making: AI tools allow you to analyze vast amounts of data quickly, leading to smarter, more informed decisions.
• Predictive Analytics: AI’s predictive capabilities help you foresee trends and risks, enabling you to address fraud and other challenges proactively.
• Personalization: AI enhances your ability to understand your accountholders on a deeper level, allowing for more relevant, personalized interactions.
• Operational Efficiency: By automating routine tasks, AI frees up your team to focus on high-value activities that grow your financial institution.
• Risk Management and Fraud Detection: AI-driven systems monitor behaviors across channels to detect and stop fraud in real time.
• Compliance and Regulatory Reporting: AI tools simplify reporting, ensuring your institution meets regulatory standards while minimizing compliance costs.

Jack Henry is taking a responsibly bold and balanced approach to AI, using our size and scale to help you access top AI tools through solution enhancements, strategic alliances, and integrations. Our goal: to help you innovate while staying true to your core mission of delivering relationship-driven banking.

taking advantage of opportunities with Jack Henry

With the AI-powered tools Jack Henry is building today, you can offer modern, data-driven services that accountholders expect while strengthening your core advantage: building deep, personal relationships.

We’re pioneering a governed, AI‑enabled approach to data that enhances access and usability while providing a structured path to adopting AI – empowering you to tap into new opportunities, whether it’s accessing critical insights or improving operational efficiency.

Data Access and Open Banking
You can’t act on what you don’t know … and AI can’t run without data.

Industry research shows most AI initiatives stall due to poor data quality and fragmented systems, making modern data readiness essential for reliable outcomes. Because access powers analysis, machine learning, and AI, Jack Henry is building components to close data gaps by integrating fragmented financial information.

This modernization strategy is multifaceted and can be seen in several ways, including:

• The Jack Henry Data Hub™: Secure, headless data pipelines that provide raw, governed data directly into institutional warehouses for banks and credit unions that manage their own analytics environment.
• Jack Henry Insights™: Domain‑level operational views that surface curated Jack Henry data – including data delivered through Data Hub’s headless pipeline. Insights offer intuitive dashboards and future AI assist prompts for frontline and operational teams. Operational reporting is also offered through Cognos.
• Our Strategic Alliance With Finicity (a Mastercard^® Company): We power API-enabled financial data aggregation inside the Banno Digital Platform™ so you can reclaim a holistic view of your accountholders’ financial lives, drive personalized service, and make more informed business decisions.

We’ve also replaced traditional screen-scraping methods with secure, consumer-permissioned data sharing for all Banno Digital Platform end users, creating visibility into external financial relationships, a crucial component for relationship banking.

Fraud Prevention With Real-Time Data and Analysis
In today’s threat landscape, fraud prevention requires real-time data and AI-driven analysis.

We’re committed to helping you mitigate risk with tools like Jack Henry Financial Crimes Defender™ and Payrailz^® Fraud Monitor for financial institutions using the Payrailz Payments Platform.

AI agents monitor transactions across all channels, identifying and intercepting fraud in milliseconds, ensuring that threats are neutralized before they impact your operations. To combat the growing threat of AI-augmented fraud from bad actors, a 360-degree view of all transactions and behaviors across multiple channels is crucial.

Jack Henry’s systems are designed to ensure the right data is continuously communicated in real time through streaming APIs, allowing you to respond to emerging threats instantly and proactively. This comprehensive, AI-powered defense protects both your financial institution and your accountholders from sophisticated fraud schemes.

Enhancing Relationship Banking With AI
Jack Henry’s AI solutions free your teams to focus on what matters most: building stronger relationships with your accountholders.

We’re looking forward to AI Assist empowering your teams to respond to accountholder inquiries in Banno Conversations™ faster and more accurately, all while maintaining your brand voice. This AI-driven efficiency can help you scale your operations without sacrificing the personal touch that sets you apart.

Your teams will have the tools to deliver a more personalized, high-quality experience at scale.

the opportunity lies in putting AI to work today

By working with innovative technology providers like Jack Henry, your financial institution can compete on a level playing field with large financial institutions, fintechs, and non-bank competitors.

You can harness the power of AI without needing massive infrastructure investments or broker agreements with individual AI providers and develop a defined data strategy.

With AI-powered technology, you can lead the way in delivering personalized, relationship-driven banking while making smarter, data-driven decisions that enhance operational efficiency, fraud prevention, and accountholder experiences.

ready to unlock your financial institution’s full potential?
Explore expert insights and actionable resources designed to help you implement AI with confidence, improve operational efficiency, strengthen security, and deliver exceptional accountholder experiences.