David Foss on bank specialization
From CNBC TechCheck+ chats with Jack Henry CEO David Foss following SVB collapse — 3/14/23 · · CNBCTelevision
“They're not specialized in serving cryptocurrency or fintechs as we saw with Silicon Valley Bank; most of our clients are serving some community and they don't feel they have that same exposure.”
On , David Foss, Executive Chairman at Jack Henry & Associates, Inc, spoke about bank specialization during CNBC TechCheck+ chats with Jack Henry CEO David Foss following SVB collapse — 3/14/23 on CNBCTelevision.
About David Foss
In a March 2023 appearance on CNBC's TechCheck+ following the collapse of Silicon Valley Bank, David Foss, CEO of Jack Henry, discussed the impact on regional banks, which are his company's core customers. Foss stated that the actions taken by the Treasury Department, the Fed, the FDIC, and the White House were "the right thing to do" to build confidence in the industry. He noted that most of Jack Henry's clients serve local communities and do not have the same exposure to cryptocurrency or fintechs as Silicon Valley Bank did. Foss said that bankers have been "buckled down" to reassure customers about their financial health, emphasizing that the situation is "not 2008 all over again." Foss also addressed Jack Henry's business performance, stating that the company had "absolutely not seen the slowdown" that competitors reported, and that it had a record sales quarter in December 2022 with a larger pipeline than ever before. He attributed a slight reduction in debit processing guidance to a shift consistent with trends reported by Visa and Mastercard. Foss said that rising rates have had a "not significant" impact on Jack Henry due to its low leverage, and that banks' improved net interest margins could give customers more money to spend. He added that bank consolidation could be a tailwind for Jack Henry, as acquiring banks need services to integrate new platforms. Regarding acquisitions, Foss said the company does not seek transformational deals but looks for additive products that customers want, and he expects opportunities to acquire assets at reasonable valuations.