Jack Henry & Associates, Inc. (JKHY) Earnings Call Transcript & Summary

All right. Well, good morning, everyone, and thank you for joining our conference this year. My name is Dave Koning, I'm a senior research analyst at Baird. I'm very pleased to introduce -- well, first of all, I guess, I cover payments, I cover financial tech and payments. I'm very pleased to introduce Jack Henry today. I think you guys have probably been with us for almost 30 years in a row. I've done this about 17 of those years. And we have CEO, Dave Foss, with us this morning. And I guess as I take a seat, they're a big bank technology, one of the biggest 3 in the country. Maybe you can introduce a little bit of the company, what you guys do and maybe talk a little bit about how macro is affecting your company right now.

Sure. Yes. So thank you, Dave, and welcome to all of you. Jack Henry & Associates, we are a 46-year-old financial technology company. As I say regularly, we are a -- we offer a robust suite of solutions at Jack Henry. So we're a well-rounded financial technology company. The reason I say it that way is, we are not a payments company at Jack Henry. We do a lot in payments but we are not a payments company. We are not just a core company. Yes, we are one of the leaders in core, but we're not just a core company. We are a well-rounded financial technology company. And I stress that because that's what customers in our space are looking for, somebody who can provide them a broad suite and is not too focused in any of those areas. So again, 46-year-old fintech essentially, primarily focused on the U.S. market. So we have some international players. But by strategy, we focus on the U.S. and see a tremendous amount of opportunity for us to continue to grow as a U.S.-focused company. We do not serve the top tier banks in the country, and that's by strategy. So if you think about the top 10 banks, that is not our market. We choose not to be in that market. We have been in that market before, we're not in that market. And also we don't sell to the really tiny banks and credit unions in the United States. We sell in that middle space. We focus on that middle space and providing that middle space customer with an outstanding suite of solutions. To Dave's point about the macro environment, so since March 12, I guess, when Silicon Valley happened, there's been a lot of turmoil, of course, in our space. Interestingly, very little if any impact on Jack Henry. So I know it's counterintuitive to [ some ]. Since Silicon Valley happened, every bank is pulling in and they're looking to sell their bank or they're going to quit spending on technology. Absolutely untrue. So we just published a survey. I think the press release went out maybe a week ago or so, 1.5 weeks ago. 78% of the respondents to that survey, and these were all CEOs, and this was -- a portion of the response came in after Silicon Valley, 78%, so they plan to increase spending on technology in 2023. I think it was 36%, so they're going to increase their spending between 5% and 10%, 14% said more than 10%, but 78% overall said they were going to increase their spending. And so there's no slowdown in spending right now. We've seen no slowdown. And in fact, as I said at our Investor Day a couple of weeks ago and I said on our last earnings call, our sales pipeline today is larger than it's ever been in the history of the company, significantly larger than any point in the history of the company. And so there is no indication of any slowdown in technology spending, certainly with Jack Henry. I can't speak for anybody else in our space. But at Jack Henry, there is a real flight to quality, I think. And so we're seeing a tremendous uptick in sales engagements, as I sit here today.

Yes. Thank you for that. And I'll ask a couple of questions, I think, high level, and then we'll kind of get into the segments a little bit. But one thing that has been a fear for investors, I would say, especially in the last 2, 3, 4 years, is new fintechs coming into the market. I think you serve something like 1,600 or so financial institutions out of in the U.S....

On the core side.

On the core side, yes.

Yes. So we serve about 9,000 financial institutions total, about 1,600 are core customers, right?

Yes. Thank you. And what's the fear of new fintech entrants? It almost seems like in the last year, there's been less fear of that. But it just seems like you've completely been insulated from any impacts.

Yes. Well, I don't want to claim to be totally insulated, but I would say that's pretty accurate. There are a few different definitions of fintechs in our space. So there are the startup banks, neobanks. And there was a lot of a lot of speculation a few years ago that these neo banks, the startup digital-only banks that are not traditional charters, that they were going to come in and displace all these banks and credit units that we serve. Absolutely have not seen that. And in fact, several of those neobanks have really struggled. Many of them built their model based on interchange. And that's the revenue driver for them. They were trying to attract customers through free. We'll give you a free account and free everything and they were making their money on interchange. Those models have been really challenged, and so not really much of a threat to our customers with the neobanks and certainly not any major advancements among the neobanks here in the last 1.5 years or so. But then the other definition of fintech is these financial technology companies, these smaller startup companies that are not doing core services. They're not processing loans and deposits in GL like we do in the core system. They're offering other niche-y type solutions, so account origination or mobile banking or something like that. And there are many of those out there. Many of them have integrated into the Jack Henry, into our ecosystem. So we are very open, that's one of our philosophies, has been since before I got to Jack Henry, and I've been here 24 years, by the way. But the philosophy since Jack Henry was alive and actually running this company was that we want to be the most open provider out there so that our customers can connect whatever they need to connect into our systems to help them be more successful. And so today, there are hundreds and hundreds of fintechs out there with these niche solutions. I think today, we have almost 1,000 fintechs connected into our ecosystem, into our platform using our API layer to do whatever it is that they do. And we are very supportive of those -- of that environment. We believe in the concept of being as open as possible because it's the right thing to do for our customers.

Great. And maybe if we move to another big theme, AI. That's kind of popped up everywhere lately. How do you see that either generating revenue for you, as a threat, saving expenses? Just how do you see that?

Yes, risk or opportunity, the answer is yes, both, right? So there is opportunity -- and think about machine learning, robotic process automation, AI, kind of all-in-one bucket, all of those things together, that has certainly created opportunity for us, not only as a company automating things in our back office and those types of things, but also helping our customers by using AI technology, particularly when it comes to call center interactions. So if you're a bank or credit union and somebody calls into your call center either on the phone or through some type of chat session, we can use AI to help that customer be -- our customer be more responsive to their customer and answering questions or dealing with an issue or that type of thing. So we've been doing that for quite some time now. And we have workflow solutions that automate the back office. We sell from Jack Henry to help our customers be more efficient. The big question right now is, okay, as AI really is moving at a fast pace, and we look to the future, the question I get all the time is, well, how about using that as a programming tool, right, to write code for Jack Henry? That is absolutely an option, but that is also where the risk is. Because if you're using AI to write code, now that becomes part of the public domain, how do you make sure that you protect that code? So we're being very judicious in trying to understand how we're going to create the bumpers, create the walls around anything we do with AI that might be coding to ensure that it doesn't become part of the public domain. So we are very active in that space but not doing -- when it comes to coding, not doing much of any significance today just because we want to make sure that we're very careful about protecting our intellectual property.

Yes. All right. And maybe if we move on to the segments. So core processing, like you said before, it's about 1/3 of revenue, 1,600 clients out of kind of TAM of 10,000 or so in the U.S. Why do you win there and maintain pretty much 100% of your clients here? You have almost no attrition.

Yes, 99.8% retention rate among our core customers. And just to level set everybody, when we talk about core in our space, core is that solution that processes loans, deposits and general ledger, right? So it's accruing interest, it's posting payments, it's providing the information to your digital banking system or providing the information to other systems. But it's that heart and soul accounting system within the bank or crediting, that is the core system, and then we connect all kinds of other things to the core. And so to your point, today, when you win a core deal, almost nobody in the U.S. has a core that they've written themselves. Those days are gone. I've been doing this a long time. Back when I first started, there were a lot of people who had a core that they had written themselves, maintained themselves, those days are gone. So every time you win a core deal, you're displacing another provider and convincing them to come to Jack Henry. So why would they do that? There are a variety of reasons. And I'm very engaged in larger deals. So if it's a larger institution, particularly if the CEO is engaged, then I will be engaged in those deals personally. And the things that I hear all the time in those opportunities, number one, they feel like whatever technology they're running from whatever provider they're running, they feel like it's getting old, it's not getting the attention it needs, it's not getting the focus or R&D investment. Number two, they feel like their customer service has dropped off significantly with whatever it is that they're running today. Oftentimes, the phrase they will use with me, the CEO, they'll say the relationship is broken, we don't feel like our trust -- we trust our provider anymore. And Jack Henry, of course, has this wonderful reputation of being a really good partner, a really good provider. And so -- and people know that, and so they'll -- that's another key driver. And then when they look at our strategy, we're known as having the most focused strategy in our space because on the credit union side, we have 1 flagship credit union core; on the banking side, we have 1 flagship banking core. And everybody knows that those are the areas of focus at Jack Henry. And so there's no question among those customers about, well, where are you going to put your investment? Am I going to be supported on this product 10 years from today? If I buy it today, are you still going to be supporting it 10 years from today? They know our strategy, and it's very clear to prospective customers. The other thing back on the customer service point that I made, Jack Henry and several analysts report on it every year, Dave is one of them who reports on it every year, the customer sat ratings that we have among customers is higher than anybody else in the industry. And that is something that we know helps us win deals. Customer satisfaction, the reputation we have for excellent service is absolutely a key influencer when it comes to making a core decision. The last point I'll make, just to make sure you all kind of understand this, any CEO, when they make a decision to displace their core, the thing I say all the time is that's the hardest technology decision you will ever make as a CEO of a banker credit union. Why? Because it is extremely disruptive. It not only impacts every employee of the bank or credit union, it impacts all of the bank or credit union customers because of the change of the system. It is the primary accounting system for the bank or credit union and everything connects into it. So they don't take those decisions lightly. And maybe I'll say it a different way, things have to be really bad for them to say, "Oh, I'm going to make a change on the core side." And yet, we are in this -- and Dave has heard it many times, we're on this run rate today of 50 to 55 new core logos coming to Jack Henry a year. There's nobody that's anywhere close to that in our space. And I guarantee -- I don't care what anybody else says on stage here, we do the numbers, we track all the deals. We know we are way ahead of anybody else in the industry. And we've been running at that pace. There was a little blip during the real height of the pandemic, but we've been running at that pace now for about 4 years, 50 to 55 logos. And like I said, those are really big deals to those banks and credit unions to when they make a decision to trade out their core system.

How many do you think switch in a year out of the 10,000 or so banks or credit unions?

Yes. It's -- and our sales leaders can quote that number very accurately, but it comes down to about 3% of all the banks and credit unions who go through a decision process. And then the most common decision is we're going to stay where we are back to the point I was making earlier. It's the most difficult decision you make. So it's 3% that go through the process and then some percentage of that who actually make a switch every year. But it's a really low number because it's such a difficult decision to make.

Okay. Yes. Well, okay, and I've got a good nerdy math question.

Good.

All right. So everybody is worried about M&A, right, and the consolidation because even you have less clients, core clients today than you probably did 5 years ago because of the consolidation.

We do.

But here's kind of the magic and the positive, I think. I looked back, your average core revenue per core client in 2017 was $250,000. Today, it's almost $400,000. So M&A is happening, but I think your average bank size is probably not 50% bigger. You're just selling a lot more stuff.

Well, it's a combination of things. So we have generally been the winner when M&A happens. We certainly have lost some customers through M&A, but we are generally the winner when M&A happens. And so let's say there's a Jack Henry customer and they acquire another bank or a credit union merges with another credit union, so the way we get paid is per account, per transaction per active user. So we got our customer over here, they acquire another institution, they merge them in. Immediately, the number of accounts, the number of transactions and the number of active users, all those numbers went up. And so just by the fact of them merging in another acquisition increases our -- what they're paying us. But to your -- to the rest of your point is, yes, we have become really good at cross-selling other solutions. So we have around 300 technology solutions at Jack Henry. And the average core customer has around 30 of those 300, 30 to 40 different solutions installed. A noncore customer, so we -- and I've reported on this for several years, noncore customers now, we have around 6,800 of them or something like that, 6,500 noncore customers. So they're not running a Jack Henry core but they are using other technologies, we're now at 5.5 products per customer among that base. And that's something that we're always pushing up because the more penetration we can get with those noncore solutions into a noncore customer, the more likely when they decide, okay, it's really bad, we've got to make a core change, the more likely they are to come to Jack Henry. So it's a combination of all those things.

And do you think -- let's say you have of two $1 billion banks and they merge, do you think as $1 billion banks, they buy 25 products each from you but together, they buy like 40?

It's not necessarily that math, but it's certainly -- it's normally an uptick, we'll put it that way, when they bring the two together. The really good news for us is in the fact that they are -- our expenses don't go up at all, and yet now they're paying us essentially double for processing because the number of accounts they brought together -- so we have a little bit of incremental expense because of the private cloud expense that we have, but we use the same customer service organization. We can support them without a significant increase in cost if we bring in a customer from someplace else. I will point out, the most likely scenario in M&A is not the billion dollar bank merging with a billion dollar bank. That certainly happens, but that's not the most likely scenario. Most likely scenario is back to my point I made earlier about all those little tiny banks and credit unions out there, they are being acquired left and right. And that is normally a really good thing for Jack Henry because we haven't been serving them anyway. We don't have their core business. They get acquired by one of our customers. All of a sudden, that creates a revenue lift for us when they're acquiring these little guys. And if you look at the consolidation, by the way, in our space, go out and look at the FDIC reports or the Callahan report on the credit union side, all the segments -- if you stratify the industry, all the segments other than the very lowest, so below $250 million in assets, all the other segments of the market show growth year-over-year. And that's been happening for several years. You've got that very low end where there are probably 3,000 credit unions and 2,000 banks or something like that. That is the one that's showing the real decline as far as number of institutions, which again is fine for us because it's our customers that are acquiring or merging those smaller institutions in.

Yes. And maybe one last question along those lines. What's maybe the ideal amount? Because I know this year, because actually merger activity was a little lower, you don't have quite as many term fees and then the convert merge activity where you kind of help banks merge together, that actually caused just a little downtick in revenue. But is there like an ideal amount of merger activity for you?

M&A, yes, there probably is. So what we've seen industry-wide for the last 33 years, the rate of consolidation has been 4%. That's been a really -- it goes up a little bit, down a little bit because of what's going on in the economy but it's really a predictable number. 4% per year has been the industry consolidation rate for a long time. That, I would say, is a pretty good number for us. We're built to handle that. We've been doing that for many years. But the key point that Dave was making in case any of you are unclear, when one of our customers acquires another institution, they pay us to convert that institution, right? There's programming involved to take the data files off whatever system they were running, convert that all over to the Jack Henry system and then the other complementary solutions that they have. So that is a revenue source for us when one of our customers acquires another institution. The other revenue source and the one we don't like, so the way I phrase it all the time on earnings calls is this is the revenue you don't want to see, is when one of our customers is acquired away, they need to buy out their contract. So it's liquidated damages, and they pay us what we refer to as a deconversion fee. So deconversion fee just hits the P&L in the quarter when they deconvert. And so people will look at that and say, wow, that's great. Jack Henry just saw a pop in revenue. And my response is no, that's not the revenue that you want to see, what you want to see is us to continue to grow and continue to maintain those customers. But it happens once in a while in our space. We can't predict when a bank is going to be acquired away by somebody else. That's the other frustration with deconversion revenue, is we can't predict it. There is no way for us to know who's going to acquire somebody in a year. So we kind of guess every year -- the educated guess, but it's a guess every year is what do we think the conversion fees are going to be because there's no way to predict that. Some people assume that deconversion revenue is entirely tied to the size of the institution. So if we have a quarter with a large deconversion revenue that shows up, people will think, oh my gosh, you lost a great big bank. Absolutely untrue. The size of the deconversion fee is based on how long is the contract they have left and how much are they paying us for a month. So you could have a really big bank that has a 2-month contract remaining, they're going to pay you a little tiny fee. You could have a middle-sized bank that has 6 years left on their contract, they're going to pay you a really big deconversion fee because they're buying out the rest of that contract. So there's no correlation at all to size of institution. There's no way for us to predict how much that revenue is going to be. And it's frankly a frustration for me because a lot of people focus on it, and yet it's revenue that we have no way to know when it's going to come or how big it's going to be.

So sometimes in our notes, we write Innovation Friday and we create kind of an idea for companies to do. What if you just paid out in dividends the amount of termination fees? Because as investors -- investment firms, we always kind of write termination fees like are kind of hard to forecast. And you probably think when we write like, oh, it's a little lower quality, if the termination fees are big, you just pay everyone dividends and then everyone would be happy.

I'll take that under consideration, Dave. Thank you.

Yes. There you go.

I didn't realize this Q&A was you offering me suggestions about how to run the business. But...

Yes, I didn't either. So okay, so let's move on to payments, 1/3 of revenue. So macro there, so your biggest part of payments, I think 60%, if I'm right, is debit processing. You're paid per transaction. Visa talked about -- and [ Robbie ] would know these numbers perfectly. But I think April and May, the downtick was maybe 4% deceleration relative to Q1. And I think January, February were strong, right, with -- there's Omicron comps. What are you feeling in that debit business?

Yes. We follow essentially the same trends that you see with Visa and Mastercard and all the reporting, That's what we tend to follow, which is the reason, so back in the February quarter, we adjusted guidance back in February because we saw this slight change coming. And it wasn't a deceleration as compared to what we had experienced. It was a lower expectation compared to what we had forecasted or planned for in the second half of the year. And remember, we only -- we issue guidance once a year normally in August. And then we updated it in February because we could see that what we had expected for the year when we issued guidance in August, that was not going to transpire. But I think in general, as you look at our cards business, following the trending that Visa and Mastercard report is usually a really good indicator of where we're going to end up.

Yes. And I think that's right about how we model it too, so we're all good. And then the other part of payments that's really interesting, enterprise, it used to be less than 20% of payments, it now is over 20% of payments. What exactly is that? Why does it grow fast? Is it just another word for B2B?

So Enterprise Payment Solutions is a combination of 2 things. It's our ACH origination business and it's our Remote Deposit Capture business. And Remote Deposit Capture is capturing paper checks and converting them into images. And I know it's 2023. I know we should not be talking about paper checks, but there are still a lot of paper checks in businesses. And so that business continues to be a really nice business for us. It continues to grow. The combination of ACH origination and Remote Deposit Capture, that is also the business that our latest acquisition Payrailz falls into. So Payrailz is a payments platform that falls into that same area and continues to grow nicely. It's not -- it's not setting in the world on fire, but it's just a nice constant grower for us because we're just signing more and more merchants, and there's more and more volume out there that's being -- that we're capturing now that we weren't capturing before.

Great. And then bill pay is less than 20% of the segment now. Online bill pay, not a super-fast growth business. Is there anything you would do there to maybe get into the other part of -- like not the bank-led, but the Biller Direct?

Biller Direct? So Biller Direct, we have a Biller Direct solution. The challenge if you're in the Biller Direct business, if you're really in the Biller Direct business is you need to have a sales force that will call on nonbanks, noncredit unions, right? You go directly to the biller. And so we've debated a lot. Today, we offer Biller Direct through banks and credit unions. So if they have a customer who wants to accept bill pay at the biller's site, so the business site, not through the bank, if they have a customer that wants to accept those payments, we can support that with the Biller Direct offering that we have today. We have, as a strategy, decided not to build the sales force to go out and call on these commercial businesses and try to sell bill solutions, mainly because we stick to who we are. We are experts in serving banks and credit unions. We have a broad suite of solutions, as I mentioned earlier, to serve banks and credit unions. It's an adjacent area for us. So that's why we support it and we offer it through our banks and credit unions. We've just decided not to go out and try to serve nonfinancial institutions directly with a solution like that.

Yes. Got you. And maybe we'll move on to complementary, so kind of the last 1/3 of revenue. And this is where a lot of your noncore bank clients, the thousands and thousands sit. And maybe to kick off this segment, you're starting to put together an unbundled solution where these noncore clients can start to buy pieces of the core instead of the whole core...

That's correct.

Can you explain that a little bit? And maybe what percent of the core -- like does somebody then buy 20% of the core? Or what maybe on average would they buy to start?

So let me -- we've got 2 topics going here. So there's the Complementary segment and then you're talking about our technology modernization initiatives. So let me hit the Complementary segment first. So the Complementary segment, hundreds of products in that segment as Dave just alluded to, a wide variety of solutions. So digital banking is in there, our fraud solutions, our Internet security solutions are in that bucket, teller systems, voice response, I mean, a whole bunch of things in that area. And so you don't see a tremendous change in the amount of growth in that area because it's a whole bunch of products. As hot as Banno is right now, our digital banking application, and it is hot, as hot as that is, it's hard for that to move the needle a lot because it's one of a whole bunch of products. But they are -- many of them are best of breed, known in our space as best-of-breed solutions. Many of them were acquired, so things that we did over the past several years, and we've built up this really nice business of noncore solutions that we can sell both inside and outside the core base. So to the second part of your question, what Dave is really referring to there is what we term technology modernization. And that's a generic term. But essentially, what we've done, and we announced this in February of last year, so we're a little over a year into the public discussion of this, we made the decision about 5, 6 years ago to do what we're calling unbundling the core. So back to the core definition I gave you earlier, it's that primary system that processes loans, processes in [ GL ]. So that has always since -- and I've been in this industry 38 years, since the beginning of time, core has been sold as a thing. It is a piece of software that does all these different functions. And so what we were looking for was what is going to be our strategy to move to the public cloud, so AWS, Azure and Google. How do we get all of our solutions to the public cloud? Because we believe in the future banks and credit unions are going to want everything in the public cloud. And today, virtually nobody runs their core system in the public cloud. So we were being very forward thinking as far as strategy was concerned. And so we started to walk through how are we going to move everything in public cloud. We have several of our Complementary solutions today that are public cloud native but we wanted to get the core there. Well, as we were working through that strategy, we came up with this kind of offshoot that we refer to as unbundling. So think about all those things the core does, we're unbundling those into separate modules as we rewrite everything essentially onto the public cloud. And now customers who are not running a Jack Henry core can start to consume some of those modules and essentially shrink the size of their core conversion. I mentioned earlier, the hardest decision for a CEO of a bank or credit union is to go through a core conversion because it's so impactful, you change everything all at once. Well, if you can start to consume some of those pieces one at a time, you can shrink the overall impact of a core conversion because you're kind of converting a little bit at a time. And so we announced this in February of last year, have had great -- originally, everybody was very skeptical. Okay, what do you guys do? And nobody has ever done this before, how would this possibly work? Now we've had a whole bunch of CIOs from a whole bunch of non-Jack Henry customers kind of do the deep dive on what we're doing and compare it to the rest of the industry. And they've come back and said -- almost unilaterally have said, "You guys are way ahead of anybody else in the industry." Still got a lot of time. This is a strategy. So it's not a product announcement, it's where we're going. We've got a lot of development left to do, a lot of rollout left to do. But we're really getting a great response so far, particularly from larger institutions. And of course, we've been moving up market for several years. Again, we're not targeting the top 10 banks in the country, don't intend to do that. But moving up market into that regional bank -- further into the regional bank space, I think, this is really going to help us as we continue with that move.

And the one other question along those lines, would these be competitor core, so like Fiserv FIS cores where you take 10%, 20% away of that instead of the...

Well, ideally, I'd like to take 100%.

Yes, right?

We still -- we believe we will -- one of the things that I've said publicly aloud is I think even though we're going to offer this unbundled opportunity, just because people are wired the way they're wired, I think they're going to buy a bundle from us that looks a whole lot like a core system that they buy today. But this allows us not only to deliver a solution in a different way, but it allows us to essentially expand the TAM because now as a public cloud native solution, we can offer other things that are connected into the core that nobody offers today through this platform that we're building. So we're expanding the TAM by creating this larger opportunity on the public cloud.

Yes. Got you. And we talked about Banno is in here. It's probably the fastest-growing scale part of complementary. I mean you've grown it like a fintech company, really. What are the other maybe 2 or 3 products that are driving a lot of growth here?

Yes. So I would say digital online commercial lending has been a big driver for us. All of our security solutions, so we just recently announced a new fraud digital fraud solution called Financial Crimes Defender. That one is getting a lot of attention. Our security solutions always are big drivers in that business. And by the way, so Dave alluded to Banno, just to make sure that everybody is on the same page regarding Banno, that is our digital banking suite. And the way I oftentimes phrase it is think of whatever you have today for mobile banking and your Internet banking. So I don't know any of you in this room, or who you bank with, but I would challenge you, I'll bet whoever you bank with today, what -- the things you can do on your phone are totally different from what you can do when you sit down at your PC. I would bet almost every one of you would acknowledge that. Banno solves that problem. So with Banno, regardless of form factor, whether you're at your PC, a tablet or your phone, it's all the same functionality, the same look and feel. It's a single solution, public cloud native, getting rave reviews. It's also recognized in our space as the fastest digital banking application. And the way we talk about that is think about when you get on your phone to bank with whoever you bank with. From the time you enter your credentials until the time you can actually do something, I would bet you it takes some -- and time it yourself. I would bet you it's about 7 seconds for whoever you're banking with today before you can actually do something. On the Banno application, we measure that in milliseconds before you can actually -- before it's usable. It's called app usable timing. The app usable is in milliseconds on Banno. And so speed, design, public cloud native and the fact that our customers have the same experience, whether they're on a PC or any other form factor, that's what gets so much attention for Banno.

Yes. And it's great. We got to watch, you can actually text within it. I mean it's an amazing product.

So yes, I always cringe when people say the word text. But there's this tool called Banno Conversations within the application where you can have a conversation with somebody at the bank, which means it's all secure, it's all authenticated. You can have -- you can share PII through that conversation. And nobody else in the industry is doing that. So that's the other thing that gets us a lot of attention.

Yes. Great. Well, that's all the time we have today. So please join me in thanking Dave and Jack Henry.

Okay. Thank you, Dave.