underlying core platform in place — often by taking advantage of cloud-based offerings. You essentially position a corelike solution next to the legacy core. The strategy can help FIs quickly adapt to market conditions and changes in consumer attitudes. Rather than waiting an extended period to turn to an alternative core with better APIs, the FI can gradually migrate data over time. What once took years could occur in as little as one weekend. A sidecar core approach could apply to several areas, including real-time card issuance products or Buy Now, Pay Later (BNPL) platforms. The possibilities for this are endless. Going Core Agnostic Legacy providers also present challenges in terms of support and service. Let's say you want to do a conversion. How do you achieve this without disruption for your customers or members? Traditional core providers use point-to-point integrations, which are not always efficient and can have a spiderweb of connections for something as simple as opening an account. It pays to be core agnostic by turning to alternative third parties to bolt onto the core or run parallel systems. There are many options to consider — it comes down to developing a sound strategy with the right partner to recognize the value in months rather than years. Middleware firms can have reusable APIs for a solution that is easier to manage. They can help the FI understand that a digital strategy doesn't have to involve a core conversion. Still, you must hold your cores accountable for access to data. Conclusion Banks can move nimbly and capture value faster by pursuing a strategy that identifies sidecar solutions that work with the core or operate in the cloud. This strategy can be a difference maker in improving customer satisfaction, accelerating loan closing times, or adding new products and services. It can be achieved in a fraction of the time it would take to consider and convert to a new core. Jeff Ostheimer is the Director of Fintech Advisory Services at SRM (Strategic Resource Management) based in Memphis, TN. Jeff spent nearly two decades working directly with the banking C-suite on core and digital transformation initiatives. Jeff regularly provides insights on open banking, banking as a service, and fintech trends to SRM's clients and the industry at large. To learn more about SRM's expertise in core banking systems, fintech consulting, vendor sourcing, and beyond, contact Colorado representative Phillip Foster at pfoster@srmcorp.com or 303-588-1484. Banks can move nimbly and capture value faster by pursuing a strategy that identifies sidecar solutions that work with the core or operate in the cloud. Colorado Banker 22
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