Are you getting the results you expected from your core banking system provider, or do you have doubts about its suitability for your business?
Whether you’ve only just partnered up with your current provider, or you’ve been using their technology for a while, there’s no bad time to change if the business case is right. But how do you know if it’s your business that isn’t using your core system to your full advantage, or whether you’re just not the match made in heaven you once thought?
Here are some of the tell-tale signs that your provider may not be the best match for your business.
1. They overpromise and underdeliver.
A good core banking system works straight out of the box, seamlessly integrating with your existing systems with little interruption to your business.
But does your existing core banking system do everything you need it to, or are you constantly negotiating new features and integrations with your provider to little effect? Perhaps it doesn’t perform as expected, experiencing frequent downtime or updating slowly.
2. Implementation is slow or incomplete.
What kind of implementation did your current provider leave you with? Was it comprehensive, training your team on the whole system, or did it leave you to foot the bill for additional integrations.
Even after years of work, implementation may still be incomplete, meaning you’re unable to use your core banking system to its full potential; perhaps you’re still using legacy systems or manual labour to complete tasks on which your team is yet to be trained.
A better provider will have undertaken a comprehensive implementation that helps you configure your core banking system for your unique demands, so you can continue growing your business from day one, not day 100.
3. Their support team doesn’t understand your market.
In order to cut costs, many core banking providers won’t invest in a permanent presence in the markets they serve, instead relying on a team based in their international headquarters or on third-party alternatives. This means they lack the kind of holistic understanding of your market and are unable to rapidly respond to your needs with in-person support.
However, a more successful provider, to meet the very particular needs of their customers, will employ local specialists who truly understand your market. This not only makes implementation, customer support, and maintenance faster and more responsive, it also means the team is more invested in your growth and success.
4. You have to keep paying for new features.
Some core banking system providers will force you to pay additional fees to gain access to updates, upgrades, and features instead of providing them automatically as standard
These could be urgent security updates or business-critical functions that you will miss out on if you don’t fork out the extra capital. The question is: is this model affordable for your business in the long-term?
A good provider will be invested in your success and so will make sure you have access to all the tools, updates and features you need to grow and grow fast.
5. It doesn’t scale as your business grows.
For any growth-focused business, scalability is the number one concern. Some core banking systems – particularly those that aren’t cloud-native – will be limited by the available server space, meaning your business growth will eventually encounter a ceiling as the system’s servers are unable to deal with the number of clients you are on-boarding, or new products you are launching.
A cloud-agnostic architecture such as Oradian’s scales as your business does, enabling you to grow more sustainably when compared to a core banking system not based in the cloud.
Making the case.
Switching core banking providers is a big decision, and making the wrong move could become a costly mistake.
But making the right choice now can reap dividends in the future, ultimately allowing your business to fulfil the growth potential that may currently be hindered by the wrong core banking system.
To help you make the right choice and determine whether it’s really time to choose a new provider, take a look at our core banking checklist.