Independent Bancshares Inc. taps Jack Henry for core banking upgrade

By Vriti Gothi

Independent Bancshares Inc., the holding company of FM BANK and Quoin Financial Bank, has selected Jack Henry to upgrade its technology infrastructure, in a move aimed at enhancing digital capabilities and operational efficiency across both institutions.

The deployment will see the banks transition to Jack Henry’s core processing platform, alongside a shift from an in-house system to an outsourced operating model. The strategy is designed to streamline and standardise back-end processes, allowing internal teams to focus more directly on customer service and relationship management.

FM BANK, founded in 1996, operates six branches across rural communities in Minnesota, while Quoin Financial Bank, acquired in 2023, runs three branches in South Dakota. Together, the banks manage close to $1 billion in assets, serving agricultural, small business, commercial, and residential real estate clients—segments where community banking relationships remain critical.

As part of the upgrade, both institutions will adopt the Banno Digital Platform to enhance digital banking for retail and business customers. The platform’s integration capabilities, including access to a network of more than 1,000 FinTech partners, are expected to provide flexibility in tailoring services to specific customer needs.

John Virnig, President of FM BANK, said the transition is aligned with the group’s ambition to strengthen its role as a primary financial partner in its markets. “Moving to Jack Henry allows us to deliver a higher-level banking experience while equipping our employees with better tools to serve customers,” he said.

The decision also reflects a broader trend among community banks to partner with technology providers that offer scalable infrastructure and open ecosystems. As competition from digital-first institutions intensifies, smaller banks are increasingly investing in modern core systems to remain relevant and improve customer engagement.

The partnership underscores a wider shift in the US banking sector, where outsourcing core systems and leveraging FinTech integrations are becoming central to digital transformation strategies, particularly among mid-sized and community institutions seeking to balance cost efficiency with innovation.