Bank Director.com recently published an article by Jack Milligan, Editor-in-Chief for Bank Director Magazine,”When It Comes to Core Conversions, Look Before You Leap” (Link Below) which features helpful information for financial institutions faced with choosing a core provider from Steve Heckard, Senior Consultant, Technology Solutions, ProBank Austin.
According to the article, banks typically change core providers because of aggressive growth and the need to support expanded product lines, or because of price. Steve shared a third reason for change: unresolved service issues that leave the bank’s management team frustrated, angry and open to change.
In the article, Steve says that core providers should understand their clients’ strategic objectives and business plans and offer a road map on how their products and services can support their needs.
Steve recommends that management teams ask three questions when choosing a core provider:
1) Have you exhausted every opportunity to remain with the present vendor?
2) Why was the new vendor selected?
3) How will the conversion restrict bank activities for the next 18 months?
In working with his clients, Steve covers the conversion process in every RFP so that bank selection committees understand what’s ahead, training requirements, and the overall impact on their banks.