15 Things Banks Look for When Buying Core Banking Software

15 Things Banks Look for When Buying Core Banking Software

Core banking helps connect the customers to their branches. Customers get the power to handle their transactions from any branch. Multi-channel software enables them to do their transactions through multiple mediums like branch, internet, mobile, etc. The software is highly beneficial in attracting customers as it makes their transactions convenient. Many banking companies outsource the software packages. A major question that arises in the minds of companies that provide such software is, what the banks are looking for when they want to buy a core banking and multi-channel software package? The following information will be helpful in answering their query.

1. Meeting objectives

A bank’s prime requirement is to meet its objectives. Whatever goals the company sets for itself, every component of the company should strive in order to achieve the same. Hence, the banks look for extraordinary software that will assist them in meeting their business goals and give them the anticipated results.

2. Price

This is a major factor when looking to buy software packages. A bank needs to check whether the potential system fits their budget. Anything with a reasonable price tag is sure to sell more.

3. Speed

Time is the most important concern for any businessman. The software in use should not be time –consuming for the employees or for customers.

4. Convenience

The core banking software should be easy to use. It should have a simplified process for any layman to decipher. The program should be customer-sensitive.

5. Longevity

No company would invest for a short term program. They need the software to assist them for a long run. They want to relax once they have bought it. A system that requires quick replacements fails miserably in the market.

6. Vendor’s reputation

What is the vendor’s reputation in the market? How has the vendor fared in its previous deals? Does it have any big success story which will attract new customers? These questions hover in the minds of banking companies when looking for banking solutions.

7. Dependability

Is the selling company capable of facing any challenge? If the bank gets into trouble, can they depend on their vendor for a solution? The vendor should be reliable during such times.

8. Features

The crux of any software lies in its features. The main reason to buy the software is the list of features that it provides. Hence, what features a particular company is offering matters the most.

9. ROI

A business lies on its returns. Whatever a banking company invests in, it expects returns. How much revenue will the software generate? If the returns are any less, then the bank will not be interested in continuing with the software.

10. Drive in customers

The core banking solutions should align with the customers’ needs. The system should be able to attract more customers. The return will increase, only when the customer base is increased.

11. Multi-channel strategy

How effective is the multi-channel strategy? Is it capable of providing segregated products and services? The program should offer versatility.

12. Innovation

This is the key word in today’s world. A bank will look for innovation in what is being offered to it. What is the new creativity in it that my competitors lack? This vital factor will enable the banks to buy the product.

13. Upgrade

The vendor should provide a facility of timely up-gradation. With the changing times, market demands change and policies are altered. Hence, regular analysis and system upgrades are necessary.

14. Customized solutions

Banks do not need tailor-made solutions. They want the vendor to understand their business and give customized solutions for them, irrespective of what it provides others.

15. Power

The bank requires authority. They do not want to be controlled by the vendors. They want freedom to make alterations in the program as per their requirements.

Largely, the answer to the question depends on what the company wants to gain from replacement. All of these factors will help the vendors to give correct directions to their product strategies.

Click here to learn more about core banking.

Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. After working many years in the website marketing industry, he decided to take on blogging full time and also get his finances headed in the right direction. He has been blogging at ModestMoney since 2012. Also check out his contributions to Equities.com and Benzinga.

3 thoughts on “15 Things Banks Look for When Buying Core Banking Software”

  1. Avatar for Thomas @ i need money ASAP!
    Thomas @ i need money ASAP!

    My friend works for a bank in their internet channel. She says that the main focus at the moment is sales & revenue. The banks are starting to learn that people purchase all sorts of things online and its extremely cost effective for them to deliver their products this way.

  2. Avatar for Yash Parekh

    Banking software’s first responsibility is to provide an end to end protection to customer’s accounts plus the reliability. These are clearly defined points to look upon. Good blog.

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