Pub. 12 2021 Issue 1

Pub. 12 2021 I Issue 1 Spring 19 West Virginia Banker The key to success here is to build flexibility into your evalua- tion cycle but choose a decision date and stick to it. Realistic time frames for processing decisions will vary amongst different organizations, depending on project dollar value, application, institution urgency level, relia- bility of existing core processing solution, etc. Ideally, the vendor selection process should allow your staff enough time to become educated on the technology industry's viable market alternatives. Establish Decision Criteria In the beginning, project goals and criteria should be estab- lished and refined throughout the evaluation cycle. These objectives are the foundation of your vendor selection and give the project direction. Some of the more common criteria are tied to the following: • Software functionality and capabilities • Price • Projected organizational growth • Cost justification or business case • Existing and projected customer base • Future product offerings • Vendor service reputation, onsite parts or guaranteed response times • Industry trends and how they match your criteria RFI There are over 70 different core processing options. The best advice here is to shop around. You can start the process by sending out an RFI (request for information) to seven or eight core processing vendors. By conducting preliminary core vendor presentations and obtaining some initial pricing, you can begin to narrow the field of core processing alternatives to the best four or five vendors that make sense for your organization. Furthermore, if the core processing salespeople know that several viable competitors are involved in the selection process, they are more likely to offer additional services at a more competitive rate. RFPs In both the RFP and proposal presentation process, the keys to success are questions, questions, questions. “If you don’t ask for it, you won’t get it.” This phrase holds true for the core processing industry. We usually advise our clients to draft an RFP to answer many of these questions because the written word is much more binding than the spoken promise. When drafting an RFP, it is imperative to keep it short and to the point. Many qualified core processing vendors may have nei- ther the time nor the staff to respond to a lengthy RFP. The list of questions to ask are many and may include any- where from 300 to 3,000 questions. In the RFP and proposal process, the following general areas should be addressed: experience, financial stability, workflow, turnaround, error rates and price per item. Site Visit and Reference Call Questions Once you have selected your final two vendors, we strongly recommend that our clients call and visit bank sites similar in size and customer base. When calling or visiting the sites pay careful attention to the following points: • Observe day-to-day department operations • Develop a list of specific deposit, data warehouse and lending questions • What were the bank’s core decision criteria? • Why did they select their core or ancillary system vendor? • Is the system user-friendly? • Is the vendor open to interfacing to third party products rather than just forcing you into one of their products? • Did the vendor interface to all your third-party software? If not, which? • Did the vendor thoroughly test the third-party soft- ware interfaces? • Did any of your third party vendors have any issues with the way the vendor wanted them to interface with their core? • Has it ever been necessary for the vendor to implement their disaster plan? • How long did your conversion take? Was this in line with their stated expectations? • Describe what you liked best about the conversion process. • Describe any major issues you encountered during the conversion process. • How did the vendor respond to these major issues that came up? • Were you satisfied with the vendor’s training before conversion? • Describe the training methodology and materials provid- ed by the vendor. • Did you receive post-conversion vendor support? Continued on page 20