If your bank has ever been through a core vendor change, you know converting is an intensive process that requires countless hours and numerous resources. But, when contract renewal rolls around, you should still ask yourself, “am I happy with my core banking provider?”
Whether or not your bank decides to change cores, it’s important to engage your current provider in a candid discussion. Contract renewal is an ideal time to ensure your bank is getting maximum value from its core relationship. If your provider doesn’t meet your minimum requirements or align with your bank’s strategy, then it’s time to start evaluating other vendors.
Warning Signs You’re Ready for a Core Banking Change
Every bank should undergo its due diligence to ensure it has a core platform in place to support its long-term objectives. Here are five warning signs that it’s time for a core processing change:
- You manage your bank by spreadsheet.
- You don’t have a 360º customer view.
- You can’t deliver an omnichannel customer experience.
- You have more open tickets than resolutions.
- You’re failing regulatory compliance audits.
These warning signs are just some of the reasons why your bank may choose to change cores. Often, the real drivers of change pertain to your bank’s corporate strategy and factors like cost, efficiency, customer service and your core’s ability to help you meet customer demand.
If your core banking system is holding you back from supporting your strategic vision or keeping you from meeting customer expectations, it’s more than a red flag. It’s time to find a new system, and a new technology partner. To find out if your bank is ready for core change, download CSI’s Definitive Guide to Selecting a Core Processing Partner.
When is the Right Time to Make a Core Provider Change?
The question is no longer, “is the risk worth the reward,” it’s “what time is the right time to make a change?” That’s because putting off a needed system change is far more risky than the cost and complexity of conversion. When technology is underperforming and you do nothing, you can no longer support your bank’s strategy—and you could be out of business.
And though the thought of moving to a new core provider can send shivers up the spines of the most seasoned bank leaders, it shouldn't be a scary process. The key is to assemble a multi-disciplined search team that allows you to identify a core provider that meets not only your technology needs, but also your financial needs. Learn more about putting together an effective search team in the second installment of our Selecting a Core Provider blog series.