By Published On: March 10, 2023

Dear Bank and Credit Union Executives,

How often have you sat through technology vendor presentations claiming their systems are the pinnacle of banking technology? They promise unprecedented efficiency and profitability. Yet, often, these claims fall short of reality. I’ve observed many CTOs and CIOs struggle to conceal their skepticism, particularly when such endorsements are backed by other C-level executives due to political reasons or corporate dynamics.

As a C-level executive, it is crucial to ensure you aren’t deceived by these exaggerated claims. Let’s delve into a few common examples. Vendors might boast that their system is “the best in the market.” But one must ask: Who defines the market? What criteria make their system the best? Are there comparable systems available that meet or exceed their offerings?

Others may claim their technology is “revolutionary” or “game-changing.” However, what specific changes does it bring, and how do these changes impact your operations? Is it a true revolution, or merely a modest update to existing technologies?

Additionally, some may tout their systems as “the most advanced” or “state-of-the-art.” Yet, what exactly makes them advanced? Are other available systems potentially more sophisticated or better suited to your needs?

Here are steps to safeguard your institution against falling for such overblown marketing pitches:

1. Conduct Thorough Research: Don’t take their word as gospel. Engage with other banks and credit unions, request references, and seek out independent reviews and analyses of their systems.

2. Scrutinize Overly Ambitious Claims: If a claim sounds too good to be true, it likely is. Approach such statements with a healthy dose of skepticism.

3. Demand Proof: Challenge vendors to substantiate their claims. Ask for clear explanations and evidence that what they are selling can deliver as promised.

Perhaps I’m being forthright, but as leaders in your field, you have an obligation to make well-informed decisions about your banking systems. Don’t allow vendors to mislead you with their hype. Instead, insist on due diligence, ask probing questions, and commit to informed decision-making. This is the only way to ensure that your bank or credit union acquires a system that truly meets its needs and fosters long-term success.

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