So, you’ve finally had it – your core provider just isn’t meeting your expectations and you’d rather find someone who does than continue to burn a hole in your bank’s wallet. You’re ready for change.
But making the decision to split isn’t the hard part. Actually breaking up with your core provider causes most of the angst because core providers, especially the big-box vendors, are notorious for having complex contracts that make it downright impossible to call it quits. Just thinking about the process is why many banks often rethink their decision and revert back to their old technology.
Yet, if there’s a will, there’s a way. Firing your core provider may not be a simple task, but we have some guidance to help ease the termination process, so your bank can move on and find a better, more beneficial partnership.
Best Practices to Part Ways With Your Core Provider
- Take a final assessment of your technology and start a wish list.
Spend some time thinking about your current core technology and invite your team to discuss what works well, what could use improvement, and what new products or integrations you’d like to add. Use our core assessment tool to evaluate your technology and uncover the possibilities that await you when you transition to a modern core provider. - Review your contract terms and renewal process.
There are multiple line items to review in your contract prior to switching core providers. First, take a look at your contract terms, renewal dates, deconversion fees, and any additional associated costs and termination details. Second, consider these terms and fees for each system, product, and service you purchased. Many providers do not have coterminous contracts and impose different terms for different products. Additionally, core contracts may not include explicit renewal dates and your bank may be renewing automatically when the terms expire. If this is the case, be sure to submit a letter of nonrenewal to your provider. - Secure a new core provider.
Now’s the time to start exploring new core providers, if you haven’t already done so. Once you’ve called it quits with your core provider, you’ll need to begin the due diligence and vendor management process to secure a new provider. When doing your research, make sure to keep these characteristics in mind, so that your technology and partnership needs are met. When you’ve made your final decision on your new provider, make sure before signing any contracts that you discuss the terms of your existing contract. This will allow you to collaborate on a realistic timeline for conversion as well as any additional timelines for ancillary products. - Start the transition process. When you have properly reviewed your contracts and know your terms and fees, and secured a new provider, then it’s to time to begin preparing for the deconversion process. Your new core provider will work with your existing provider to transfer data files and your integrated partners to ensure they can be converted to the new system.
You’ll also need to prepare your team for the transition. Here are a few things to consider:
- Identify key team members that will be involved in the conversion process and prepare them for their role.
- Introduce your team to the provider’s conversion team, so there’s good communication up front.
- Work across departments to clean up your account files, so the conversion runs smoothly.
- Identify questions or concerns you have up front with the new provider to ensure a successful transition.
There are a few additional things you can do to help you have a successful transition. Download our free ebook to learn more about them.
Look Forward to a New Core Partnership
Securing a new core partnership is a time to reset and start over with a new provider, and hopefully, it’s with one who shares your same vision for growth and equips you with the products and services your bank needs to stay competitive and compliant.
We also hope that your new provider cuts you a break and simplifies the legalese, so that your terms and conditions are clear, your costs and fees are transparent, and your contracts are coterminous.
If your new provider is incapable or unwilling to fulfill the above, you may just experience déjà vu and find yourself in the same situation you were in not too long ago. However, we remain optimistic that this won’t be the case and that your bank will receive the exceptional service and support it deserves. Just like you serve your customers, your provider should do the same for your bank.
Best of luck and let us know if we can help you on your journey!
IBT Apps reduces the stress of conversion! If you’re up for renewal and considering other core options, we can help. Connect with us to discuss your options.
