Creating a Checklist for Selecting a Digital Core Banking Software Provider

If you’re embarking on the journey of finding the right Digital Core Banking software provider, it’s essential to establish a checklist to identify key features and facilitate the evaluation process. The market is filled with diverse providers, each offering distinct services. Some focus solely on front-end applications like web and mobile banking for end-users, while others specialize in back-end solutions. This checklist aims to streamline your decision-making process and enhance your understanding of available options.

Front-end – White-label Web-Banking and Mobile Application for End-Users

Does the Core Banking software provider offer white-label front-end applications?

Certain core banking providers exclusively provide a component of the comprehensive Core Banking system, specifically the Core Banking engine with a back-office. Consequently, you’ll have to seek another provider for the front-end applications or handle their development internally. This introduces additional time requirements for application development and integration with the Core Banking system. While this situation may seem inconvenient, it can potentially lead to significant challenges during the integration phase.

Back-office

Does the Core Banking software provider include a comprehensive back-office solution?

Initially, you might underestimate its significance, but certain vendors exclusively furnish Digital Banking solutions. This implies that they solely offer applications designed for end-users. This can lead to a cumbersome implementation process for you, as you will need to identify another provider for the Core Banking engine and ensure compatibility between these systems for seamless integrations.

General Ledger and Reporting

Beyond primary banking functionalities, such as accounts, IBAN generation, and payment processing, inquire about additional features.

Does the Digital and Core Banking system provide a robust general ledger (accounting) and reporting capabilities to meet both financial and regulatory requirements?

Check if the Core Banking system supports daily accounting and offers the ability to generate specific reports for your accounting department. Look for integrated reporting or data export features to facilitate seamless reporting processes.

Solution Customization

Many Digital or Core Banking software providers offer customization solutions, but it’s crucial to understand the extent of flexibility provided. For seamless business continuity and growth, the solution should support customization throughout the entire business lifecycle. This includes the ability to make changes during the initial stages of operations and adapt to support future growth. Customization involves more than just adding a new provider or branding an application; it should also allow modification of business processes, addition of fields for end-user applications, and customization of back-office interfaces.

Technology

When selecting a Core Banking software provider, consider various technological parameters that can impact your decision and future operations. Ask your provider the following questions:

  • How open is the technology to integrate efficiently with third parties?
  • Is transitioning from a SaaS solution to an on-premise solution possible?
  • Does the solution operate on a fully modular and microservices architecture, with components that can operate independently or seamlessly interface with each other?
  • Will the provider’s technology support your future needs, avoiding being too novel or outdated?
  • What programming language was used, and how popular and adaptable is it?
  • How user-friendly is the back-office interface, balancing simplicity with robust functionality?

Price

Budget considerations are vital, and prices for Core Banking solutions can vary significantly. Ensure you understand the expenses involved, including:

Setup fees

Costs and pricing structures for solutions can vary significantly. For instance, fees for the SaaS setup can span from €40k to €500k. Different Core Banking software providers may have distinct approaches, with some charging extra fees for each integration, while others focus on customization costs. It’s advisable to inquire with your provider about the anticipated expenses, seeking clarity on:

  • Setup fee
  • Costs for integrations (some providers may offer them for free or charge a fixed rate)
  • Customization expenses and whether the provider offers free staff-hours for customization
  • Monthly fees for SaaS solutions or maintenance fees for software purchases
  • Transition costs if moving from SaaS to on-premise solutions, including any financial privileges or discounts

Support

Consider the support level offered by your provider. Depending on your IT resources and business expansion plans, you may require different support levels. 24/7 support becomes crucial as your business grows, meeting the expectations of customers in a digital-first world. Additionally, inquire about solution updates – how frequently does the provider update functionality and security? Regular updates are essential for security patches, feature enhancements, and compatibility with third-party solutions.

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