Nov 5 (Reuters) - Financial technology company Jack Henry & Associates 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

and FIS , respectively.

The company continues to see its adjusted revenue for 2025 to be between $2.35 billion and $2.38 billion.

(Reporting by Arasu Kannagi Basil and Niket Nishant in Bengaluru; Editing by Mohammed Safi Shamsi)

((Niket.Nishant@thomsonreuters.com;))