Nov 5 (Reuters) - Financial technology company Jack

Henry & Associates ( JKHY ) posted a 17% jump in first-quarter

profit on Tuesday, driven by higher demand for its technology

solutions, as banks and financial institutions accelerated their

digital modernization initiatives.

The company offers technology and payment processing

services mainly to small- and mid-size financial institutions.

Technology is crucial for such firms to meet customer

demands for a seamless digital banking experience and to compete

effectively with fintech companies.

Many banks see technology spending as a core business need

rather than an optional cost, which is prioritized only during

favorable economic conditions.

Services and support revenue increased by 4.2% to $356.7

million in the quarter ended Sept. 30, while processing revenue

grew by 6.6% to $244.3 million.

Profit rose to $119.2 million, or $1.63 per share, for the

first quarter, compared with $101.7 million, or $1.39 per share,

during the same period last year.

So far this year, the stock has appreciated by 13.6%, in

contrast to gains of 52.8% and 44.1% for competitors Fiserv ( FI )

and FIS, respectively.

The company continues to see its adjusted revenue for 2025

to be between $2.35 billion and $2.38 billion.