Jack Henry Partners with Bits of Stock to Offer Fractional Shares as Everyday Spending Rewards
Jack Henry (Nasdaq: JKHY) has announced a strategic alliance with Bits of Stock that will allow financial institutions to provide fractional shares of stock as rewards on everyday spending. The program is embedded directly within the Banno Digital Platform, turning routine card transactions into opportunities for long-term wealth building.
Embedding Investment in Everyday Banking
With Bits of Stock’s loyalty and rewards platform, consumers can directly through their financial institution—without downloading extra apps or opening separate accounts. This functionality supports Jack Henry’s strategy of positioning banks and credit unions as the access point for all financial needs, while also strengthening deposit relationships.
The integration bridges traditional banking and modern investment tools, appealing especially to younger generations. By embedding stock rewards in checking accounts, financial institutions can transition accountholders from transactional relationships to long-term wealth-building journeys.
Driving Engagement and Deposits
Bits of Stock has reported that users of its platform tend to increase their account balances significantly, in some cases by as much as 40% within 12 months. Research conducted by NYU Stern, commissioned by Bits of Stock, also found that fractional stock rewards are 34 times more effective than spending per dollar of reward.
By offering fractional stock rewards, financial institutions can drive higher engagement, deepen accountholder loyalty, and improve deposit retention at a time when competition for deposits remains strong.
Industry Perspective
Erica Pilon, Head of Corporate Strategy at Jack Henry, highlighted the rising demand for accessible investment options:
“There is growing demand, especially from younger consumers, for in small, incremental amounts. This unions reach new investors by providing them with accessible investment tools from a financial institution they already know and trust.”
The partnership reflects Jack Henry’s mission to empower accountholders to better control their finances and improve their financial health through innovative, embedded services.
ahead Adoption Case Study
Credit Union One of Oklahoma recently launched a comprehensive three-tier checking account that integrates Bits of Stock at multiple levels. Options range from free accounts with round-ups to premium accounts offering 1% stock rewards on all purchases.
Tyrel McCain, President and CEO of the credit union, said:
“We were so impressed with member response during testing that we integrated stock investing capabilities into every checking account tier. It creates a natural progression where members can begin with free entry points and graduate to earning stock rewards as they deepen their relationship with us. It’s driving both new account openings and fee income while assisting our members build wealth through everyday spending.”
As competition among financial institutions intensifies, embedding stock rewards directly into everyday banking could assist institutions attract younger demographics, retain deposits, and diverseiate themselves from digital-first challengers. The Jack Henry–Bits of Stock partnership marks a step toward merging everyday payments with long-term wealth creation in the U.S. financial services market.
