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5 secrets behind the successful procurement of a new core banking solution

Procuring a new core banking solution is an experience few brag about. Even fewer have been involved in replacing an existing one – but those who have done so have gained many priceless experiences. Here, we share our customers’ most valuable lessons.

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1. "Allow the procurement to take time – and effort."

An essential part of procuring a core banking solution is that time needs to be set aside for working on the change itself. Otherwise, there is a significant risk of getting stuck and starting over again. You'll see benefits by carefully planning what time and space is required for the project and thinking through which platform and supplier are best suited for your business.

2. "We should have involved more people in procuring the core banking solution."

Changing your core banking solution will – and should – involve large parts of your organisation. Our customers' experience is that it is essential to include as many aspects of the business as possible early in the process. Many challenges that arise later on can be avoided by having the necessary competencies in place and an overview of the project and preventing them before they happen.

3. "We did some testing but should have done even more."

This is a lesson we often encounter in procuring core banking solutions. Powerpoint presentations in all their glory, but to get an accurate picture of how well the organisation will work with a potential supplier, you need to test the collaboration early – preferably even before you make a decision. If the supplier uses agile working methods, be sure to put them to the test during the evaluation. Workshops, role-plays and other techniques give you a fair picture of what it will look like in a possible collaboration – which means that you avoid surprises down the road.

4. "We needed to meet the right references."

What was more or less successful with the platform and supplier you were curious about? What were their strengths and weaknesses? What challenges arose, and how were they handled? Maybe you have an existing relationship with another bank that uses one of the platforms you are considering. Otherwise, it may be worth contacting a few of the supplier’s previous customers to learn from them. Feel free to let a broader group in your organisation ask questions about specific matters to get the best possible basis to weigh in on your decisions.

Read more: 8 tips for conducting a feasibility study of your implementation project

5. "It was good to find out what requirements the supplier set at an early stage."

A common experience is that the supplier's expectation of what you, as a bank, should bring with you into the project is a vital decision parameter. When you compare different offers, you will probably see that they all have a slightly different approach. How open and transparent is the supplier with what you need to do during the project? Do they have a plan for what you need to deliver and what it should look like?

How reasonable are their expectations, and what are the conditions for meeting them? Of course, there will be more situations later in the project where either party could have been more precise. But to minimise the ambiguities, it’s essential to discuss these issues as early as possible – preferably before you have chosen a partner.

Do you want to know how our core banking solution from Applicon works? Contact us, and we will tell you more!

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