implications of core and it contracts on your financial institution
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Implications of Core and IT Contracts on your Financial
InstitutionMay 28, 2015
Stacy Litke, Managing DirectorJennifer Healy, Managing Director
Market dynamics continue to dramatically change the way information technology (IT) is used and
applied to support community and regional banks.
Business units utilize departmental
systems to access and analyze information
Executive management has access to powerful
information and analysis tools
Anytime, Any where, Any
Method computing with direct access
to data
Knowledge workers access and update data at the point of
presence
Vendor Management as a Continual Process
• Managing contract dates• Accountability for Service Level Agreements• Tracking of issues, required enhancements, partnership• Terms of the “divorce”• Annual financial statements and third party reviews
What makes core contracts different?
• Mission critical• Difficult to replace• Holds key customer data• Integrated or interfaced to multiple systems• Long term
HUGE RISK!
Trends in Core Technologies to Consider in Negotiations
• Timing o 6 - 12 months o Over 12 months
• Satisfaction with System and Vendoro Meeting needs of users and Managemento Vendor viabilityo Ability to meet future needs
Factors that will influence strategy:
Trends in Core Technologies to Consider in Negotiations
• Pricingo Favorable? Average? Unfavorable?
• Systems Position in Life Cycleo Growing – Winning deals, trendingo Solid / Middle of life cycle – Vendor extension
strategies include price cuts and rebranding efforts
o Sunsetting - not profitable or vendor changing its focus
Keys to Remember
• Be prepared with dates, terms, issues• Allow adequate time to complete process• Consider future needs• Option for professional assistance
Questions?
Stacy LitkeManaging [email protected]
Jennifer HealyManaging Director
om
www.thenbsgroup.com