Navigating the Decision-Making Process: From Alluring Demos to Critical Vendor Evaluation in Banking Technology Upgrades.
As a bank executive researching options to replace your aging core banking system, you’re likely bombarded with dazzling demos and slick sales pitches from vendors, each promising transformative technology. However, these marketing efforts only reveal part of the picture. To make an informed decision, you need to look beyond the surface and thoroughly vet potential partners by evaluating their operational realities. Here’s why:
The Limitations of Demos
Demos are carefully curated to impress prospective clients, not necessarily reflect real-world application. Salespeople script and choreograph demos to highlight strengths while downplaying weaknesses, presenting idealized versions of the technology. Crucial questions often remain unanswered, such as:
– How usable is the platform across different workflows?
– How reliable is core system performance under load?
– How quickly do they respond to incidents and support requests?
– How flexible are they around customizations?
– How much effort is required for upgrades?
Demos alone rarely reveal these critical operational realities that can significantly impact your bank’s day-to-day functioning. You need additional sources to assess them.
The Value of Reference Checks
Speaking to vendors’ current customers can provide the missing puzzle pieces left after demos. Candid feedback from peers who already use the systems carries enormous weight, offering real experiences beyond the sales pitch. Good questions to ask references include:
– How intuitive and efficient is the platform for your users?
– How reliable and robust is core system performance?
– How responsive is vendor support when issues arise?
– How complex and disruptive are upgrades?
– Would you recommend this partner and platform?
Evaluating Service Levels and Vendor Responsiveness
Even the most flawless software requires solid service backing it. Carefully evaluate potential partners on operational factors beyond sheer technology capabilities:
– Review service level agreements (SLAs) for performance, response times, uptime, and reporting.
– Ask about flexibility around customizations and change requests.
– Discuss their staffing model, team strengths, capacity, and turnover risks.
– Request a crisis scenario response plan for major incidents.
This due diligence confirms whether vendors have the resources and processes to deliver ongoing support and service.
Aligning with the Right Partner
Ultimately, you want a partner invested in achieving your bank’s business objectives, not just selling technology. Before committing, ensure your goals, priorities, and challenges align with theirs. Probing beyond demos into operations, commitments, and philosophies illuminates this fit.
You need more than just a software vendor; you need a trusted partner for the long, complicated journey of core modernization. Vetting beyond demos establishes this. It reveals partners worth embracing for the long haul, not just short-term sales cycles. With rigorous evaluation now, you gain a strong foundation for core banking success together into the future.
Found this article interesting? Check out these three related reads for more.
- Unmasking vendor exaggerations Navigating core banking system claims
- Evaluating core banking system implementation timelines
- Don’t get baited by vendors’ dream teams
#VEndorDueDiligence #BankingVendorSelection
