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© 2017 Jack Henry & Associates, Inc.®1 © 2017 Jack Henry & Associates, Inc.®
Outsourcing Rules of EngagementJHA OutLink Processing Services™
Presented by:
Ralph Borenstein, Senior Director of Operations
Jack Henry & Associates, Inc.®
© 2017 Jack Henry & Associates, Inc.®2
Legal Disclaimer: Dates contained in this presentation are
provided as estimates only and can be changed at any time
at the sole discretion of Jack Henry & Associates, Inc. This
information may not be incorporated into any contract and
should not be relied upon in making purchasing decisions.HANK YO FOR THE
OPPORTUNITY TO
SHARE JHA’S STORY
© 2017 Jack Henry & Associates, Inc.®3
About OutLink
OutLink Solutions
Allen Data Center
Charlotte Data Center
Lenexa Core Director Data Center
Item Processing & Print Centers
Synergy Express Center
jhaCall Center™
Disaster Avoidance
Summary
Discussion
Agenda Topics
© 2017 Jack Henry & Associates, Inc.®4
In the outsourcing
business since 1995
OutLink Overview
© 2017 Jack Henry & Associates, Inc.®5
328 348 364 387 409 427 473 514 539 557 568 577 604 611 622 6200 2 8 31 37 48 51 57 66 88 106 127 163 168 199 200
0
500
1000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD
Banking Clients CU Clients
OUTLINK IS OUR
OUTSOURCING
BUSINESS.
WE PROCESS FOR
820 financial institutions
which represent $348B
in assets.
71 banks and 3 credit
unions with over $1B in
assets.
OUTLINK CONSISTS OF
Three core processing centers
jhaCall Center™
Four check image keying and
balancing centers
Three print centers
An enterprise content
management center
© 2017 Jack Henry & Associates, Inc.®6
Why Do Financial Institutions Outsource?
“Outsourcing helps us manage
costs and avoid surprises …”
“Outsourcing helps us do a better
job of managing compliance …”“Replacing staff has become a
non-event for our institution …”
“We now have much more
time to focus on building
our business …”
Financial Institution’s comments who have moved to OutLink:
“We no longer worry about
providing our own core
disaster recovery …”
© 2017 Jack Henry & Associates, Inc.®7
Formalized policies and procedures across all operations.
JHA Internal Audit reviews every processing site annually.
FFIEC joint regulatory team reviews OutLink annually with complete
examinations on eighteen month cycles.
SSAE18 Type 2 examinations
A “Big Four” external audit firm conducts annual review of all core applications and core processing sites.
This report is provided as part of our service to JHA customers.
OutLink Best Practices
© 2017 Jack Henry & Associates, Inc.®8
OutLink Core Data Centers
THREE CORE PROCESSING CENTERS
Allen: SilverLake
Charlotte: CIF 20/20®
Lenexa: Core Director®, CruiseNet®, and Episys®
RECOVERY SITE
Branson
820 CUSTOMERS LIVE
SilverLake: 236
CIF 20/20: 328
Core Director: 56
CruiseNet: 77
Episys: 123
© 2017 Jack Henry & Associates, Inc.®9
OutLink Core Data Centers
0
100
200
300
400
500
600
700
800
900
Banks Credit Unions
© 2017 Jack Henry & Associates, Inc.®10
Allen Data Center
© 2017 Jack Henry & Associates, Inc.®11
Redundant
communications
and power
capabilities
State-of-the-art
processing
environment
12.9 mm
accounts
processed
nightly
99.999%
processing
success
Outstanding
system
availability –
stable and
consistent
IBM iSeries
systems
Fully protected
by generator
and UPS
backups
Allen Data Center
7x24x365
© 2017 Jack Henry & Associates, Inc.®12
Allen Facility
Top-Tier Data Center Built in 2012 with Significant Structural
and Infrastructure Enhancements
Continued Focus on Change ControlPhysical change control for items such as deployment and cabling keeps
environment operationally sound
Logical change control utilizing products such as Turnover facilitates structured
testing and production transition
© 2017 Jack Henry & Associates, Inc.®13
Charlotte Data Center
© 2017 Jack Henry & Associates, Inc.®14
Redundant
communications
and power
capabilities
State-of-the-art
processing
environment
6.2 mm
accounts
processed
nightly
99.992%
processing
success
Outstanding
system
availability –
stable and
consistent
IBM iSeries
systems
Fully protected
by generator
and UPS
backups
Charlotte Data Center
7x24x365
© 2017 Jack Henry & Associates, Inc.®15
Charlotte Facility
Top-Tier Data Center Built in 2012 with
Significant Structural and Infrastructure
Enhancements
Continued Focus on Change ControlPhysical change control for items such as deployment and
cabling keeps environment operationally sound
Logical change control utilizing products such as Turnover
facilitates structured testing and production transition
IBM iSeries POWER7 has 21 processors currently with
processing capacity to support foreseeable future
growth
Telecommunication infrastructure includes:- Significantly increased internet bandwidth with multiple
carriers
- Full router redundancy and protection
- Capacity to accommodate future growth
Data Center is 2,000 square feet in a secure controlled-access facility
Communications cabling above equipment while power feeds are below floor
IBM iSeries POWER7 has 21 processors currently with processing capacity to support
foreseeable future growth
Telecommunication infrastructure includes:
- Significantly increased internet bandwidth with multiple carriers
- Full router redundancy and protection
- Capacity to accommodate future growth
Power Infrastructure includes:
- Dual feeds from grid
- 1,500 kw generator
- UPS
- All equipment is supplied through two power feeds
© 2017 Jack Henry & Associates, Inc.®16
Lenexa Core Director®
Data Center
© 2017 Jack Henry & Associates, Inc.®17
Redundant
communications
and power
capabilities
State-of-the-art
processing
environment
Over 690,000
accounts
processed
nightly
99.999%
processing
success
Outstanding
system
availability –
stable and
consistent
IBM xSeries
virtualized
systems
Fully protected
by generator
and UPS
backups
Lenexa Core Director Data Center
7x24x365
© 2017 Jack Henry & Associates, Inc.®18
Lenexa Core Director Data Center Staff
Our Lenexa Data Center team is solely focused on our customers and
their needs
Our Data Center Staff consists of several staff members with over
20 years experience, many with 5-15 years of experience and a few
newcomers. In this business … we are very good at what we do!
© 2017 Jack Henry & Associates, Inc.®19
OutLink Item Processing Centers
FOUR REMOTE KEYING CENTERS
Allen, TX
Lombard, IL
Totowa, NJ
Oklahoma City, OK
DISASTER AVOIDANCE
Allen and Branson
476 CUSTOMERS LIVE
Item Volumes Average 2.71M with
Peaks Over 4.7M Items per Day
380
390
400
410
420
430
440
450
460
470
480
490
Customers Processed
2012
2013
2014
2015
2016
2017 YTD
© 2017 Jack Henry & Associates, Inc.®20
Item Processing Centers
• Complete electronic image processing utilizing 4|sight and Check Image Exchange
− Fully integrated with JHA Core systems
− Duplicate presentment detection
− Inputs from Teller Capture, Branch Capture, Merchant Capture, Federal Reserve
Bank and 3rd Parties.
− Outputs to Federal Reserve Bank, 3rd Party Correspondents, Internet Banking,
Fraud System, etc.
© 2017 Jack Henry & Associates, Inc.®21
OutLink Print Centers
THREE REGIONAL PRINT CENTERS
Allen, TX
Totowa, NJ
Shawnee Mission, KS
DISASTER AVOIDANCE
Full Disaster Avoidance Posture
between all 3 Print Centers
392 CUSTOMERS LIVE
Over 4.1M statements
generated & mailed monthly
657K customer notices
generated monthly
© 2017 Jack Henry & Associates, Inc.®22
Print Centers
• High speed automated insertion equipment
• Color and black/white printing capabilities
• Fully protected by generator and
UPS backup
© 2017 Jack Henry & Associates, Inc.®23
Synergy Express Center
© 2017 Jack Henry & Associates, Inc.®24
OutLink Synergy Express Center
SOFTWARE AS A SERVICE
Enterprises Content Management
Highly Integrated solutions that maximize efficiencies, reduce operating
costs and enhances Customer Service
DISASTER AVOIDANCE
Full Disaster Avoidance Posture
in Springfield and Branson facilities
491 CUSTOMERS LIVE
0
100
200
300
400
500
600
Customers Hosted
2010
2011
2012
2013
2014
2015
2016
2017 YTD
© 2017 Jack Henry & Associates, Inc.®25
OutLink jhaCall Center
FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES
Center Located in Springfield, MO
Competitive Differentiator
DISASTER AVOIDANCE
Monett, MO and Branson, MO
38 SERVICE ENGAGEMENTS YTD
Conversion Assistance Services0
5
10
15
20
25
30
35
40
Service Engagements
FY11
FY12
FY13
FY14
FY15
FY16
FY17 YTD
© 2017 Jack Henry & Associates, Inc.®26
jhaCall Center™ ⎻ What is it?
SERVICES
Full Call Center outsourcing
Overflow services
After-hours Call Center services
Select Services: Event-based
assistance
24/7 Call Center outsourcing
DR/BCP services
Full business operations outsourcing
SOFTWARE
Your bank uses our Call Center
software
Efficiency, Efficiency, Efficiency
© 2017 Jack Henry & Associates, Inc.®27
Customer Service
Business is About People
It’s good to remember that and
treat the people you deal with as
individuals. Relationships keep
us together, and together we
can do great things.
- Jack Henry & Jerry Hall
Premier Service …
Jack Henry’s primary and
sustainable competitive
advantage …
Client Satisfaction …
Regulary and accurately
measured with formal annual
surveys ... 50,000+ routine
online surveys ...
© 2017 Jack Henry & Associates, Inc.®28
OutLink Support Experience
OutLink enhances your complete support experience
• You contact JHA through a voice line or through the client portal.
• JHA support departments provide software support.
• OutLink Data Centers provide assistance with operational issues and scheduling.
• CRM (customer relationship manager) facilitates “getting things done” within
JHA – they are your advocate for your financial institution.
• Over 325 associates in OutLink “run your business” and we leverage our
entire company to support your ongoing needs and your future goals
“OUR BIGGEST DIFFERENTIATOR IS SERVICE …”
© 2017 Jack Henry & Associates, Inc.®29
OutLink Client Portal
© 2017 Jack Henry & Associates, Inc.®30
OutLink Communication
Extensive communications to our clients
Proactive communication of special events
Scheduled down time notifications – 30 days in advance
Extensive Monthly Performance Statistics provided on-line
Real time alerts to programming fixes and special releases
Service Alerts advising you of any unusual events
Hourly updates during system outages
Toll-free number to call at any time during a processing “event”
Monthly Performance Reporting
Bi-Annual OutLink Newsletter
Quarterly Regulatory Newsletter
© 2017 Jack Henry & Associates, Inc.®31
The MountainSecure, 170 feet underground facility in Branson, MO.
Impervious to most natural disasters including hurricanes, earthquakes, floods, tornados.
Serves as a backup location and also a live and active operations site for many JHA products.
Multiple levels of telecommunications resiliency.
Robust hardware configurations to ultimately support all OutLink sites in business interruption or
disaster scenarios.
Full data replication technology helps ensure complete recovery services.
© 2017 Jack Henry & Associates, Inc.®32
Disaster Avoidance
HIGH DISASTER TOLERANT TECHNOLOGY AND PROCESSES
Reducing the impact felt by you and your customers.
DISASTER AVOIDANCE TESTING
Consists of reversing the replication between the two sites.
We then run in production for an extended period of time.
The ultimate test of disaster recovery.
PRIMARY/STAND-BY MODEL
Two geographically disparate locations are synchronized “near real-time”.
Hardware is the same in both locations.
We utilize SAN replication and/or software replication.
All applications and associated data required for production exist on active media within both environments.
Tape backup largely eliminated as a required component for production data restoration.
© 2017 Jack Henry & Associates, Inc.®33
We provide you with the ability to
deliver technology solutions to
your customers.
We are your data center! We allow you to focus
on the business you know best – the business
of banking.
OutLink Advantages
We manage regulatory compliance. We manage disaster recovery.We offer a single point of
technology focus.
We enable a predictable cost
model for budgeting.
We take total responsibility for
computer operations activities.
At the same time, you have full
control over products, cycles, and
user security and management.
© 2017 Jack Henry & Associates, Inc.®34
Discussion
WE LOOK FORWARD TO
EARNING YOUR BUSINESS AND
A HIGHLY SUCCESSFUL
PARTNERSHIP