Peapack-Gladstone Bank doubles escrow business with Jack Henry

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Peapack-Gladstone Bank added Jack Henry & Associates’ deposit escrow management system to its technology lineup in 2018, aiming to increase revenue and efficiencies and compete directly with the national banks in its geographical area. Since using Jack Henry’s Agiletics Escrow System, the bank more than tripled its escrow business from $89 million in 2018 to $300 million in December 2021.

Four years ago, the $6.2 billion- asset bank, which has been in business in New Jersey for over 100 years, was looking to add commercial deposits, particularly low-cost deposits, to its portfolio. To do so it needed a configurable and scalable escrow management platform that would serve this new type of customer and support the bank’s long-term vision. Peapack-Gladstone Bank had a small and cumbersome escrow business at the time, mutually executed by the bank’s employees.

Jack Henry’s deposit escrow solution enables business customers to open, maintain, and close their own escrow sub-accounts for multiple lines of business, such as landlord-tenant, attorney-trust, real estate, and others, through a user-friendly online portal. Banks grant access and control directly to customers, allowing them to manage unlimited types of escrow relationships. Since leveraging Agiletics, Peapack-Gladstone Bank has automated processes, increased productivity and efficiencies, and has seen both existing customers and new clients respond positively to being able to self-manage their escrow accounts.

Ashley Vroom, AVP at Peapack-Gladstone Bank explained, “We used to work all day long to manually allocate and open sub-accounts for our customers. Jack Henry’s escrow management system has helped us free up resources, allowing us to focus on growing our business and strengthening our relationship with our customers. We now have a great contactless system that empowers our customers to manage their own escrow accounts, removing the middleman and reducing delays and mistakes.”

With Jack Henry, Peapack-Gladstone Bank now has the same escrow deposit capabilities as national banks. The bank has significantly increased the number of commercial deposits in its portfolio without adding resources, managing 333 active master accounts and 8,319 active sub-accounts in March 2022. Kevin Runyon, Executive Vice President at Peapack-Gladstone Bank, commented, “Jack Henry’s escrow management solution has helped us strengthen our position in the market. We are now gaining customers from the likes of Capital One, Wells Fargo, and Bank of America. Having the same escrow deposit capabilities as the big banks, while being able to manage the product more effectively and deliver better support is what drives people to us and has allowed us to grow.” The bank also appreciates the solution’s features when it comes to navigating compliance requirements and regulations.

Stacey Zengel, president of Jack Henry Banking, said, “Peapack-Gladstone Bank is a strong example of a regional bank dedicated to supporting its local communities. By investing in modern technologies, the bank continues to put clients first, even in the face of unexpected events and challenges. As a result, it has attracted new business banking relationships, expanded old ones, and continued to improve its bottom line through low-cost deposits. At Jack Henry, we are proud to have contributed to its success and look forward to a long and prosperous collaboration.”