How to Choose the Right Core Banking Software and
Vendor for Your Bank?
If you are facing the challenge while choosing the right Core Banking Software and
Vendor and if you are in confusion in selection from a shortlisted few, the
following points can be useful to you in making the right decision.
- Today in almost all banks Customer Services are automated.
- Many banks in the world are running on age-old legacy system technologies and
platforms without changing the software of banking for the sake of technology
- Major cyber fraud, cybersecurity threats to Banks increases from its Wide Area
Network, Exposure to the Internet, and from Human actors in the organization.
The instances of cyber fraud threats or cybersecurity threats to Banks due to
development technology/platforms that are used in bank’s banking software is
- The decision of banks to change banking software is mostly due to Limitations
of Functions, Limitations of Reporting of software.
- Required for change banking software appeared due to helplessness of present
vendor to upgrade its product functionally, gives support services to bank.
- There is a shortage of budget on Bank to purchase multiple tools, software,
vendor services to cover the GAP between solutions that are available in the
present banking software in Bank and expected features, solutions in new
software, and expected services from CBS vendor.
- Multiple times the banks do not have sufficient IT Staff or do not have
essential training facilities for its IT Staff.
Considering above mentioned Facts and Scenarios, banks must make sure that the
following in the process of new banking software evaluation:
- Detailed product walk-through of the banking software. The evaluations of
serious banking software had walk-through sessions for up to 2-3 days.
- Most of the software only offers operational reports and are lacking any
Statutory Compliance Reporting and Analytics i.e. BI Reporting. In the
walk-through, make sure that the vendor shows all statutory and analytical
reporting and BI Reports and that explains all business logic in the complex
- Choosing of vendor’s customer site for an onsite visit from the list of few
possible customers of the vendor. Detailed onsite visit of the customer; Inspect
at the banks visited, that all those features, reports, delivery channels are
included which are missing at your bank.
- Examine track record of modifications by the vendor at its banks of the
customer for reports addition, new delivery channel developments and the
reasonableness of price, and promptness in following delivery timelines.
- Examine the track record of the services by the vendor from several customers.
- Choose the evaluation points for banking software and score for every point.
- Workout on the TCO of the bank for the next 5 years due to the Hardware,
Connectivity, Legal Software that needs to implement the banking software.
- Don’t take decisions in a hurry only on some suggestions or under influence
without following the due process.
- Don’t finalize the software only based on the price but it should be based on
some of the technical scores and commercial scores.
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