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How good is your relationship with your core vendor salesperson? Have you known them for a while? Do they invite you and your team to fun events? It can be fun to get together with those you have a working relationship with for a local sporting event or concert.
Here are three topics you can address with your technology vendor in Q4 that might improve your relationship in 2022 and beyond: 1) regular meetings, 2) contract management, and 3) strategic planning for 2022 and beyond.
Cryptocurrencies get a lot of attention these days. Much of that attention is due to the volatility of the asset compared to other currencies. In other words, if I bought a bitcoin for $15,000 a couple years ago, could it be worth $45,000 today?
Our partner, Charlie Kelly, was asked by The American Association of Bank Directors to join their podcast, “Calling All Bank Directors” to explain Bank Technology to outside Directors. The association felt that outside bank directors were often less familiar with bank technology than they should be.
If you are in charge of marketing or data analytics at your bank, you likely are familiar with the concept of the primary account relationship. For those of you that are new to the concept, it goes something like this: People can shop anywhere for their financial products. Most of us have relationships with more than one financial institution. You may have your checking account and your savings accounts at one bank, your auto loan with a credit union, and your mortgage somewhere else. Your student loan may be with an online-only lender.
When it comes to financial institution technology (everything from teller lines to client-facing mobile applications) used by your bank or credit union, you might be tied to a core vendor for five, seven, maybe even ten years. For technology that usually comprises the 3rd largest expense, negotiations are crucial and simultaneously, quite infrequent.
Beginning the renewal process at the “right” time can be one of the most important decisions of the overall process. Most vendors will allow an early renewal, within reason, but I am quite certain a lot of banks are not aware of that timeframe and do not fully understand the value of renewing early. What is the appropriate timeframe? Keep reading.
Bankers provide digital tools to their customers, but many community bank CEO’s and even most “Digital Experts” from large financial technology organizations struggle to answer two questions related to their digital users:
Three Things to Discuss with your Core Vendor prior to the New Year
Should your Outside Directors understand financial technology?
After completing one renewal on your own, it was evident that market pricing information was necessary for an effective negotiation. Remedy was able to provide that plus other contract information that made for a positive renewal. Remedy was able to achieve more than our expectations, including significantly lower rates.
Amy Johnson, COO
Dairy State Bank, Rice Lake, WI
We wanted to ensure our pricing and contract terms were in line with those of other financial institutions. Remedy had the tools and knowledge to help us out. The process, from beginning to end, lasted about 4 months. Remedy took care of all the negotiations and simply kept us apprised of where the negotiations were at and how they were going.
Ben Hansen, CEO
RSNB Bank, Rock Springs, WY
Remedy Consulting was able to achieve much more than our expectations during our core contract negotiation including significantly lower rates and contract language that much more favorable to the bank. We were extremely impressed with the project management and professionalism shown by the Remedy Team. Highly recommended.
Walker Jordan, President
Bank of Monticello
Our organization was engaged in a negotiation with our core provider for a contract renewal. Although we were already well into the process, I made the decision to hire Remedy because I felt the negotiations were taking too long and consuming too much of my management team's time.
Josh Hoppes, CEO
Mutual Savings Association, Leavenworth, KS
Cornerstone Bank thanks Remedy Consulting as a strategic partner in core contract negotiation. Brian, Project Manager, streamlined the process of our core vendor renewal and advised us as to the new technologies that we could continue/implement and still receive a cost reduction on our five-year contract. We are happy to highly recommend Brian and the Remedy Team.
John Doull, President
Cornerstone Bank, Overland Park, KS
