Being in the financial services sector, we hear the term 'security' a lot. We are required by regulators to have policies and practices in place to protect the data in which we are entrusted. The question we must ask ourselves is how we allocate the budget we have to defend ourselves against an adversary that has better resources and greater funds then we do. The US government spends billions of dollars on security, and we hear stories of their data breaches on a regular basis. If scammers can breach even their highest security level, how do we do it with budgets that are a fraction of theirs?
The success of a bank hinges largely on their relationship with their core partner. This is especially true for community bankers since the needs for each are specific to the demands of their business. For community bankers to retain market share in an ever-evolving market, it is essential for them to choose a core solution that is intuitive, and an active partner that is willing and able to do what they need to stay competitive.
De-conversion fees are the last thing you want to think about when you feel trapped in your core agreement. As daunting as these fees may seem they shouldn't stop you in looking for a better solution for your institution. There are a few things you should be aware of before starting your due diligence in evaluating core providers. The decision made at the end of this process is one of the most substantial investments you will decide on for your institution. The following two steps will help you set expectations correctly and gauge the level of difficulty you may encounter before you begin the process. By “working backward” you will save yourself from spending hundreds of hours looking at various providers only to discover you are being held hostage by your current core provider and allow yourself the freedom to efficiently decide on a better partner for your core processing.