What Are Bankers’ Top 8 Factors in Deciding the Best Core Banking System? BY JASON YOUNG, CSI As we begin the new year, many institutions are reflecting on their goals and plans for the year ahead. And some may even be evaluating whether to change core providers as current contracts near expiration. But what should bankers consider when deciding upon the best core bank system? We used findings from surveys, industry research reports and interviews from recent years to develop eight factors that banks should keep in mind when deciding on the right core banking platform. TOP CONSIDERATIONS FOR EVALUATING A CORE PLATFORM Factors for switching technologies include cost, satisfaction with their existing technology suites or a cultural mismatch with their provider. But since a conversion often overhauls business processes and takes a considerate monetary and time investment, deciding on the right partner requires a great deal of consideration and discussion with key stakeholders at the bank. Here are eight factors that should play a part in bankers’ evaluation of core platforms: 1. Expected Comprehensive Functionality Bankers favor a core platform approach to technology primarily because it eliminates dealing with multiple vendors and disjointed experiences. So, it’s hardly surprising that product suites and functionality top the list of essentials as bankers begin searching for a new core. Core contracts can last for decades, so banks must consider whether the vendor’s technology will successfully carry them into the future and grow alongside them. A core banking platform must offer comprehensive functionalities to support various banking operations, including customer onboarding, account management, deposits, loans, payments and reporting. This also includes integrating digital banking solutions to rival big banks and digital experiences elsewhere. 2. Whether a Core Will Maximize Return on Investment Banks evaluate the cost-effectiveness of a core banking platform by considering factors such as the initial implementation investment, ongoing support costs and potential customization or integration expenses. The best deals with new technologies often originate from the core vendor or their existing partners, as there are fewer implementation and integration steps. Although customer demands often drive technological priorities, most investments ultimately seek to save money one way or another. For instance, responsive cloud-based architecture can eliminate some software and hardware expenditures. Built-in efficiencies like streamlined onboarding can also bolster the bottom line by helping customers open accounts and spend money from them faster. 3. Core Banking Platform Customization and Ease of Use Bankers look for banking functions to reliably fit together and interact cohesively. The core platform should be easily navigable with search functionality, easy-to-decipher data, readily available tutorials and reliable service representatives who assist with the platform as needed. On the vendor side, a thoughtful adherence to UX design principles can go a long way. Bankers often praise platforms with an aesthetic appeal, a natural hierarchy, CURRENCY | 7
RkJQdWJsaXNoZXIy MTg3NDExNQ==