April 21, 2022by Brian Hink
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.
Brian Hink
Senior Director
Brian manages Remedy’s Vendor Negotiation and Bank Strategy practices.
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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!
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
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
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
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
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
