Okay, I think we're going to get started here. Are we pretty close? Maybe shut that other door. Thank you. Okay. I'm waiting. I'm giving extra time. My clock, my countdown clock hasn't even started, so I'm going to get some extra time on this. Hi, everybody. Technically, good afternoon, as of now. I'm Mimi Carsley. I'm the CFO of Jack Henry. Delighted to be with you. Apologies in advance, weather issues flying out of Dallas last night to going on about three hours of sleep. So if I start speaking a different language or something, just give me a, give me a nudge or something. Okay, so today you're here to hear about Jack Henry. Let me do the obligatory mention of some forward-looking statements maybe in our discussion today. There's also going to be some reference to some non-GAAP metrics.
You can look at our website or most recent earnings release for any reconciliation. As I talk about most of the time, I might make mention to FY 2023 or 2024. We are a June 30 filer, so, moving on to that. Okay. So happy to be talking about Jack Henry. Thankful for William Blair for giving us the opportunity. I could talk about Jack Henry all day, but I'm going to limit it to 30 minutes. We're going to have a little bit of a Q&A after for anyone who's interested in staying. I'm gearing today's talk to those of you a little less familiar with Jack Henry, so, for that, I encourage you to look. We put out an Investor Day presentation that has a lot of our metrics. We don't do a lot of presentations.
In fact, I was just telling Chris, this is the only investor meeting where we actually put together slides, but we do have a really fulsome Investor Day deck. Our Investor Day is coming up. It is right after Labor Day. So if you have an interest, Vance Sherard, sitting in the corner, who's going to join us for the Q&A after, please let him know if you'd like to be on the mailing list for our Investor Day. It will be at the Dallas Airport, so you don't even technically have to leave the airport to join us. So let's start off with. So I started my career, I was a portfolio manager, like a lot of you are. So I like thinking of things from both the buy-side perspective and from a portfolio manager perspective.
So, let's talk a little bit about Jack Henry. If you're completely new to Jack Henry, we are a well-rounded financial technology company, and I'm going to talk a little bit about our culture and what we do and who we serve, and what we do from a market perspective. But as I think about it, and I'm going to roll through some of these in a little bit more detail in a while, but it is a very large, strong, sticky business, serving critical technology support for U.S. financial institutions, with an experience. We've been around for 48 years, so an experienced, seasoned team on discipline, and a great track record of shareholder value generation. So let's jump into some of the deal. So let's start about culture.
Jack Henry culture is really at the essence of what we do. I like to say we're like a Midwest values company, and our ethos, if you ever get an email from any of us or get a business card from Vance, on the back of our business cards, it says: Do the right thing, do whatever it takes, and have fun. And we really live by that motto, and that stayed consistent since the founding of the company. And we run the company on three pillars of success and focus areas: our associates, our clients, and our shareholders. And we are in the people business. We are a technology company, but we are in the people business. So first and foremost, we like to create an engaging work, you know, environment for our associates.
We believe that if you treat your associates well, they will in turn deliver service excellence, which we are known for in the industry. And if that happens, then it just kind of takes care of itself from a wonderful virtuous cycle, and we will take care of shareholders from a performance perspective. So it's easier said than done. It sounds really simple, hard to do, but that's the motto of which we've been living. Oh, and it would help if I actually clicked the green button, so sorry for that. So that's the motto of which we've been operating the company for 48 years. So I could fill a page with logos. We win a lot of logos. We're very proud of that in regional markets and national markets.
These are just a couple of ones we're especially proud of because it is a more objective. Companies like Newsweek, Computerworld rank us. They say we're some of the hip kids. You know, we win these, like, innovative fintech, even though we're a 48-year-old company, and they survey our employees. The second way we measure how we're doing on those three pillars of success is we do engagement surveys, and we don't just do them once a year. We do it on your anniversary, your work anniversary. So we have a continuous listening for our employees to make sure that they feel like they're doing rewarding work, they feel like they have a place they can bring their best selves to work, and therefore, will bring innovation and service excellence.
So, we rank at about 80%, which is great, compared to benchmarking of about 69%. We're pretty proud of that as well. And then the last is, I mentioned before, we pride ourselves on service excellence. So, anytime our customers have a call with our service center, we do a follow-up survey, and we consistently rank around 4.7, 4.75, which, you know, if you have kids in school or remember school, like, my kids are in school, getting a 5.0 is pretty hard. It means you have to, like, pretty much get, get a 4.75, you have to be scoring fives most of the time. So we're, we're doing that, and that leads to incredible retention. We have a 99%+ retention of our customers, ex-M&A.
So we have customer relationships, over 55% of our relationships with banks are over 20 years. Over 33% of our credit unions have been with us over 20 years, so incredibly happy and loyal customers. And that comes from delivering products that, that add value and, and doing the right thing in the way we serve them. The next is a little bit just around our sustainability. We believe not only that corporate sustainability is the right thing to do, but we also see it as important for the viability of our business model, preserving value for our associates, our clients, and our shareholders in the communities we serve. And, and we view that leadership is a privilege. We can have a broader impact on the industry, and we can be a force multiplier for good.
So, it's not just about feeling good and it being the right thing to do. We also see it as a competitive advantage. Employees want to work for a company that aligns with their values, and customers, especially younger generation customers, and we say this to banks and credit unions all the time, they want to do business and work with a company that aligns with their values. So, in March, we published our fourth annual sustainability report, and that goes over how we're living up to our sustainability commitments, communities, impact, our, our responsible business practices, and our environmental standards that we have. So that kinda covers a little bit of the how we operate. Now let's shift to, who we serve. So Jack Henry is very focused in who we serve.
We serve community and regional financial institutions in the U.S., and we believe that community and regional financial institutions are the lifeblood of Main Street America and the bedrock of the economy. If you live, you know, bicoastal, you think that everyone kind of banks at J.P. Morgan and Wells Fargo, and that, you know, is what happens. But the community, the role that community banks play in the U.S. economy is really important. They do most of the lending, most of the small business enablement in the U.S. economy. They have more creativity for lending practices than the mega banks or big tech, and they consider more factors when making credit decisions. And so they really do act as a guide in the money moments of need, and really understand the communities they serve, and they have more personalized service.
They are known for the personalized service. In fact, I was in Detroit at a client conference about a week ago, and my Uber driver, going back to the airport, said that he had been with his community bank for over 30 years, and he brought his son into the bank, and his son was baffled that he didn't even have to show ID. Like, the banker knew him, they, like, took his deposit, they knew his account number. Like, it's about a different level of service and engagement. And in this digital financial fragmentation world, being at that hub of a central, trusted advisor position is paramount. And so we have, as I mentioned, we've been in business for over 48 years. We are 100% focused in the markets we serve. So we, I, I'll get into the segments we serve.
We do a lot in payments. We have a lot of applications, but we serve financial institutions. And so we serve over 7,500 clients. There are only about a little over 9,000 banks and credit unions in the U.S. today. So we serve a lot of clients, and that accounts for over 240 account holders in the U.S. So we have a wide breadth of touching end customers and banks and credit unions. So let's go into that profile. It's a diverse profile. There's a lot of misnomer out there. Jack Henry only plays in the small banks. After SVB, there was a lot of, like, small banks, and they talked about, like, $100 billion banks being a small bank. That is not a small bank.
So if you think about the U.S. financial market as a pyramid, there's about 10-20, let's call it tier one banks, the J.P. Morgans, the Wells Fargos, the banks that you would recognize the name and logo, if you saw it. After that, the triangle expands quite wide, and at the very bottom, talk about, like, the $50 million and less small size, a lot of small credit unions. We don't really serve those small. You know, we have point solutions, but in general, we tend not to serve the smallest of the financial institutions in the U.S., and we tend not to serve the highest, largest institutions in the U.S., and that's by design. We feel like it's not economic. We feel like they don't have the resources to help with technology.
It's just not where we feel it's attractive to play strategically. But that leaves a really big swath in the middle, and you can see that we have over 23% of the market share in banks in a sizable section of the market, and that is in the $1 billion-plus to 10 billion size market. And we have over 46% of the $500 million and up-sized credit unions. So that's a lot. If you think about the industry over the last four decades, it has been consolidating at about 4% a year. That's not a new phenomenon. Yet our assets have grown tremendously in the banks we serve and the credit unions we serve.
So in the last 10 years, it's gone from roughly about $970 trillion in assets of clients we serve to over $2 trillion—Sorry, $970 billion to over $2 trillion in FI assets over that time period. But we have diversification in the revenue model. So while the count of U.S. institutions have been going down, we, our revenue models are based on the number of account holders, the number of active users for applications, the number of transaction volumes as it relates to payments, even the amount of assets. And so our revenue model is not dependent on the number of financial institutions in the U.S.
And if anything, we've been continuing to grow upmarket, and both by organic growth of our institutions as they grow, as they acquire other banks, as well as in new core wins, new competitive wins in larger-sized institutions. So today, our average size on both the bank and credit union is over a billion-dollar size institution. So, and that's just core. This slide is core. When you think of core, think about an ERP system, the heart, the blood, you know, the whole system, how you open an account, how you record a loan, how you record a deposit, the kind of back-office mainstream of a bank and credit union. So that's the one of the products we offer. We also all talk a lot, we do a lot of payments, and we have a whole suite of complementary solutions.
But today, our largest core customer is just under $50 billion in assets, with aspirations to grow to $100 billion in assets. On the other, the complementary and payment side of the house, we serve up to institutions that are over $200 billion in assets. A large swath and diversity of the client. You know, main takeaway is certainly solid market presence with, with room for growth. That talks a little bit of, you know, who we serve. Let's talk about this. This is kind of how we operate and what we do. Just for the sake of time, I won't go over the full wheel, but I'll, I'll point to a couple. So at three o'clock, driving innovation at, at scale and speed at the time the industry needs it.
So about 5 years ago, for those who might know us a little bit better or know our reputation, I would say we might have been more perceived as a laggard in the industry. And, and I'd like to say that today, we're not your father's Jack Henry, right? Today, we are on the cutting edge of technology, setting trends for our industry in our tech monetization strategy, in the new products we're rolling out, like fraud, like Banno, our digital banking app. So a lot of innovation. We are build and an acquirer shop, so we have a tremendous capability for internal development and do a lot of internal development. But as you see from 11 o'clock, we're also an experienced acquirer, and we've done over 48 acquisitions in the company's history.
We're a disciplined buyer with a really strong track record, but we don't chase, and we have the internal capabilities. So if valuations in the market aren't interesting or too high or we're just not seeing the property, we're heads down and we're developing. The last one I'll call out is at 5 o'clock, and that's kind of fostering an open ecosystem. We started as a core-only company, and so we knew that our banks would have to get technology from others, and we wanted to be the easiest, most open bank to deal with. We can deal with banks if you want, and credit unions, if you want best of suite, you can buy everything from us. We're happy to sell it to you.
But if you want best of breed or if you only want a point solution of our best of breed of this particular point solution, but you already have something, we want to make it easy. So we work with over 1,000 fintechs in the market today that have easy API integrations into our system. We've issued over 1.7 million tokens to third parties last year around those APIs, and we have jackhenry.dev, a very healthy ecosystem that we're supporting. So let's talk a little bit about the solutions we offer. So we offer over 250 solutions, really around nine capabilities. So think about lending, think about commercial banking, commercial relationships, fraud and financial crimes, wealth management, back-office operations, info security, digital banking, and payments. So I like to group them to say, like, these are mission-critical applications.
A lot of people talk about, like, what's happening with the economy, what's happening with bank IT demand, and we'll get to that in a bit. But what these solutions are for are long contracts around core. You can't run a bank or credit union without a core system, or they're helping them gather deposits, or they're helping them with risk management. So these are really important tools and solutions in a bank or a credit union. The bulk of our solutions are delivered hosted SaaS model, long-term contracts. So on the core side, that can be anywhere around 7 years, all the way up to 12-year contracts with institutions. And as I said, we have an over 99% retention rate, and then in our other solutions, usually around a three- to five-year contract length time.
So I would say the diversity of our offerings, the nature of our products, the long-term contracts with high retention rates really lead to the resilience and the durability of the Jack Henry model. So every year we put out a survey. If you go to our Jack Henry website, you can find it. It's called the Strategic Benchmark Survey. We ask our bank and credit union CEOs, like, what's on their mind? What are they looking—what are their priorities for investing? How much are they going to spend in the coming year? The most recent survey that came out, really pretty fairly consistent over the last three years in terms of needs. Not surprising, the number one strategic priority was around deposit gathering.
Particularly post the stimulus money period of COVID, it's been more challenging for most banks and credit unions around deposit gathering, so growing deposits is paramount. Number two, with rising interest rates, not too surprising, it's around driving efficiency is the number two priority. That's talking about operational efficiency, data analytics, AI, back office automation, and then number three is around growing loans. So, the good news is, no matter what the challenge an FI, that's financial institution, is facing, we say technology is usually at the heart of that solution, if it's not the solution. You know, no longer are people just kind of throwing bodies at a challenge. It really is around technology helping their solution. Doing on time. Doing great. So, as I said, we do a lot of internal development.
We spend about 14%-15% of revenue annually on our R&D efforts. We think that's about double the competition. The list on the right is not exhaustive, but it gives you a sense of what we're prioritizing from a research and development perspective. We've been doing a ton around modernizing and securing our tech platform, enhancing our solutions, streamlining operations. We'll talk a little bit about our tech modernization effort in a moment, but we really think that we have the ability to drive innovation and shape the future of our industry. We're hearing great validation from banks, from partners around the tech modernization story. So let's jump into that a little bit more. So we talked about that core system, that the ERP of a bank or credit union.
If you think about that, it's really about 30 pieces of functionality: opening an account, posting interest to a loan, you know, deposit, managing the profile of that account holder. Like, there's kind of 30 nuggets, if you will, that makes up a core system today, and today it's one system. What we're doing is we're first of all moving to putting it in the public cloud. So today, a bank or credit union can either host it themselves, roughly about 28% of our clients still do that, or they host it in, we host it for them in our private cloud environment. Then, where we think it's moving is public cloud. So we've partnered with Google. We also work with Azure. We also work with Microsoft.
but our biggest partnership is with Google, and what we're doing is not only rewriting a full core and making it digital cloud native API first, but we're also unbundling it. So it will be a more modular approach, which is great, 'cause today, we like to make the analogy that replacing your ERP system is like heart and lung surgery at the same time. And a CEO and a CIO of a bank or credit union would tell you they would rather retire or die, very strong wording, right? Retire or die, rather than replace their ERP system. But if it's in modules, then you don't have to do it as a big bang. So today, your bank closes on a Friday, the old system, and you don't breathe, and then on Monday, you open up with your new system.
It's about 12-18 months of readiness because every process, every training, every procedure in your bank or credit union is touched by that system. So if you can decouple it, you can de-risk that, right? You can also think about a staged approach over time. So you could use one of our flagship cores today, and then over time, add in these new modules. So, so that's kind of what the plan is. This gives you a visual representation of how that might work, how you might integrate third parties into it. Why you would move to the public cloud? There's a lot of public cloud benefits. Today, credit unions are real-time processing today, but banks are still batch.
So if you think about an end-of-night process, an end of month, end of quarter, end of year, a lot of capacity, and you have to have that capacity at all times, but you may not need it at all times. So, you know, in the cloud, compute capacity is somewhat unlimited. You can burst in your demand, much more efficient from pricing. You can do real-time updates all the time. If you think about how many times your iPhone or your apps on your iPhone can give you updates, much more than a once a year or twice a year, larger codebase that most programs are in today. The security enhancements, just the developer tools, the compliance, it's all much better and more efficient in the public cloud. So that's kind of where we're moving. We're probably still...
We started releasing modules this year. We have domestic wires. We have some other modules going out. It's helping us not only on the core, but we're able to use that code in some of our other products as well, which is going to be a long-term margin enhancement for us as well. But we're probably three to five years away from a full core in the cloud, and we're essentially skating to kind of where the puck is. And we think that three to five years is both when the readiness of our clients will be ready, but also the regulators.
If you think about the core, that's where all your PII, right, your personally identifiable information, is in the cloud, and the regulators are still nervous about that, and they are also figuring out how to rewrite all of their training procedures around how to monitor, how to do surveillance to cloud systems. So today, a lot of our other products and services are already public cloud native. Anything we're writing and releasing in the last three years has been public cloud native, but the core system, it's gonna take a little bit more time. So we talked a little bit about the products we offer, the services. Let me talk about just how it shows up in financial reporting. So we report on three segments, operating segments, plus corporate. Core, we just talked a lot about, that's that core processing for banks and credit unions.
Then there's payments. So we do credit card and debit card processing. We do enterprise payments. We do bill pay and payment center. So our payments, we have about $230 billion worth of monthly processing volume. We facilitate credit and debit. We do our Zelle, real-time payments, which is RTP, FedNow, P2P, A2A. So you think about all the faster payment rails, we do all of that. We're also the largest remote deposit capture solution in the U.S., with over 3,000 customers. So that's payments, that's core, and then if you think about complementary, I like to say, if it's not payments and it's not core, it's complementary, just like it's everything else. That's where you'll find our loan solutions, that's where you'll find our fraud solutions, that's where you'll find our digital solutions.
Our Banno banking platform is in that complementary. And so together, that's consistently about 7%-8% growth a year. And you're talking on a $2 billion revenue base. So that's our growth model. So diversification across the three segments and businesses, and long-term high recurring revenue. I'm running out of time here. So the last is just talking about our sense of responsibility as good corporate allocators of capital, being good stewards of our investors' capital. I've already talked about we've been a disciplined acquirer over the last several decades. Our capital allocation approach kind of has remained consistent, but yet dynamic. So our priorities are certainly operating liquidity, maintaining that, reinvesting for our growth. We talked about that 14%-15% in R&D. We have a very healthy and committed dividend program.
We've grown over the last 20 years, consecutive fiscal years. We do share repurchases, and we have very low leverage. So that will remain consistent. Obviously, M&A is always a wild card, in terms of what opportunities that might say. And if we think about what might be interesting and compelling in terms of acquisitions, it certainly needs to be an acceleration opportunity for our tech roadmap. It needs to be digital cloud native. It needs to be financially attractive. So all of that, all in, we have a ROIC of over 20% that we're quite proud of, and we are certainly committed to sustainable value creation and investor capital return. So in summary, 'cause we're running out of time here, lots of happy, loyal customers. Many are growing. Scalable, sizable markets generating, you know, real value.
Diversification of customers, diversification of products, yet a focused strategy on serving financial institutions. A SaaS model with high recurring revenue at attractive margins, and growth that's not dependent on acquisitions. We are an organic grower, so acquisitions are kinda the gravy on top, if you will, and a model that is capable of continuous margin expansion. So kind of where we are, I like to say Jack Henry is a premium franchise. It has limited macro sensitivity, it's a durable and predictable grower, and we produce attractive, high single-digit performance and margin expansion. So it's delivering profitability and growth. Okay.
And with that, let's close on just our mission and purpose, 'cause it, it's at the heart of everything we do at Jack Henry, and that's we strengthen the connections between people and their financial institution through technology and service, and really aim to help our financial institutions stay competitive and help them reduce the barriers to financial health for their, for their end users. So with that, I thank you for your time, and thank you, Chris, for having us here today.
Yeah. I want to thank you, Mimi and Jack Henry, for coming. Given this is the last presentation of the day, we will have the breakout here. Last but not least, for a complete list of research disclosures and/or potential conflicts of interest, please visit williamblair.com. Thank you, everyone.