As you embark on the quest to find the perfect Digital Core Banking software provider, establishing a comprehensive checklist is essential to identify key features and facilitate the evaluation process. The market is teeming with diverse providers, each offering unique services. Some focus solely on front-end applications, such as 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 the available options.
Table of Contents
Front-end – White-label Web-Banking and Mobile Application for End-Users
Is the Core Banking software provider equipped with white-label front-end applications?
Certain core banking providers exclusively furnish a component of the comprehensive Core Banking system, specifically the Core Banking engine with a back-office. Consequently, you may need to seek another provider for front-end applications or handle their development internally. While this situation may appear inconvenient, it could potentially pose significant challenges during the integration phase.
Back-office
Does the Core Banking software provider offer a comprehensive back-office solution?
Initially underestimated, this aspect holds significance, as certain vendors exclusively provide Digital Banking solutions, offering applications designed solely for end-users. This can result in a complex implementation process, requiring you 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 Customisation
While many Digital or Core Banking software providers tout customization solutions, it’s crucial to grasp the depth of flexibility offered. For seamless business continuity and growth, the solution should endorse customization throughout the entire business lifecycle.
This involves the ability to implement changes in the initial stages of operations and adapt to support future expansion. Customization goes beyond the mere addition of a new provider or branding an application; it should encompass the modification of business processes, the addition of fields for end-user applications, and the customization of back-office interfaces.
Technological Considerations
When choosing a Core Banking software provider, evaluate various technological parameters that can influence your decision and future operations. Pose the following questions to your provider:
• How open is the technology for efficient integration with third parties?
• Is transitioning from a SaaS solution to an on-premise solution feasible?
• Does the solution operate on a fully modular and microservices architecture, with components functioning independently or seamlessly interfacing with each other?
• Will the provider’s technology accommodate your future needs without being too cutting-edge or outdated?
• What programming language was used, and how popular and adaptable is it?
• How user-friendly is the back-office interface, striking a balance between simplicity and robust functionality?
Budgetary Considerations
Budget considerations are paramount, and the prices for Core Banking solutions can vary significantly. Ensure a clear understanding of the expenses involved, including:
Setup fees
Costs and pricing structures for solutions can vary widely. For instance, fees for SaaS setup can range from €40k to €500k. Different Core Banking software providers may adopt distinct approaches, with some charging extra fees for each integration, while others focus on customization costs. It’s advisable to seek clarity from your provider regarding anticipated expenses, including:
• 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 Levels
Consider the level of support provided by your provider. Depending on your IT resources and business expansion plans, different support levels may be required. 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.
