Splitit and Jack Henry Team to Help Banks Compete With BNPL

Splitit, a bank-linked installment payments company, has partnered with two Jack Henry platforms, SilverLake core banking platform and Banno Digital Platform through the Jack Henry Fintech Integration Network (FIN). The press release highlights how the partnership aims to assist banks in competing with buy now, pay later (BNPL) services.

According to the release, when customers choose third-party BNPL apps over their bank, the bank loses out on various aspects such as transaction visibility, fee income, engagement, and the opportunity to strengthen the primary banking relationship. Splitit's platform, integrated with Jack Henry, allows banks and credit unions to bring payment innovation back into the banking relationship by offering installment capabilities for deposit accounts and debit cards.

Splitit's Chief Technology Officer Ran Landau emphasized the importance of providing installment payments seamlessly integrated within the banking relationship, given the growing expectations of consumers. The PYMNTS Intelligence report indicates that installment lending has transitioned from being a financial lifeline to a tool for managing purchasing and cash flow preferences, primarily driven by wealthy consumers valuing payment flexibility, budgeting control, and convenience.

The report suggests that banks benefit from these relationships due to their transaction histories, established trust, and direct access to consumers, which can help reduce customer acquisition costs and retain installment products within their ecosystem.