a16z Live How Jack Henry is Modernizing Banking Infrastructure
Dec 19, 2024
Ben Metz, Vice President and CTO at Jack Henry, leads the charge in modernizing outdated banking systems. He reveals how many banks still rely on pre-internet technology and the regulatory hurdles hampering innovation. Metz shares insights on integrating AI and cloud computing into community banks, aiming to reshape the financial landscape. He discusses the critical need for startups to collaborate with traditional institutions and offers practical advice for fintech founders eager to drive change in an evolving market.
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Bano's Journey
- Ben Metz's startup, Bano, initially aimed to build an open banking platform similar to Plaid.
- Acquired by Jack Henry in 2014, the team grew from 40 to 900 engineers.
Community Bank Importance
- Regional and community banks are vital to the US economy, supporting local businesses often overlooked by venture capital.
- Jack Henry's success is tied to these institutions, creating a shared fate model.
Pre-Internet Legacy
- Most US dollar settlements rely on pre-internet software, creating a complex "desert of edge cases."
- This outdated software, not the hardware, is the main issue in financial infrastructure.