The Remedy Blog

Timing isn’t everything, or is it?

| by Brian Hink | 0

When calling on prospect banks or credit unions I rarely come across a member of the C-Suite who is looking forward to the renewal process of their core software. The common theme among executives is that they feel the cards are stacked against them and the negotiation game is exhausting. There is no doubt, that without vendor knowledge or a solid understanding of the renewal process/methodology the entire negotiation process can be quite daunting.

The key to managing the renewal process from the consultant's perspective is to get leverage on the side of the bank or credit union client that we negotiate for. Below are a few tips prior to your next renewal:

  • Begin the process when you have roughly 18-24 months remaining in your contract. There are a lot of benefits in doing so, one of them being that you can put your vendor on their heels at least thinking you may be shopping for a new vendor (see system selection page of Remedy’s website).
  • Don’t wait until under 12 months to negotiate your contract. The big vendors know time is on their side and the client may lose some leverage points due to lack of time.
  • Schedule time on calendars of key stakeholders at the bank or credit union as well as the board of directors so all know how important the timing of your core renewal is.

So, when it comes to the contract renewal process, time may not be everything, but it certainly can get you through the process more successfully.

For more information on the contract renewal process and timelines, reach out to Brian Hink.

Trusted Advisor to Banks and Credit Unions

Remedy Consulting helps financial institutions (FI) thrive through best-in-class fintech consulting services specializing in System Selections, Contract Negotiations, Outsourcing/In-House Advisory, Bank Mergers & Acquisitions, and FI Strategic Planning. As a trusted advisor to banks and credit unions located in Wisconsin, the Remedy Team has executed over 700 system selection and vendor negotiations since 2016. Our clients receive a cost reduction on their core vendor contracts and increased efficiency with Remedy's Price Repository. To learn more about Remedy Consulting, contact us today!

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