Making a thorough checklist before you start your search for the ideal provider of Digital Core Banking software will help you identify important features and streamline the evaluation process. There is a plethora of different providers in the market, each with their own specialization. While some just concentrate on front-end apps, such as end-user web and mobile banking, others are back-end solution specialists. With the help of this checklist, you should be able to make decisions more quickly and have a better grasp of your options.
Front-end: White-label Mobile Applications and Web-Banking for End Users
Does the company that provides Core Banking software have front-end white-label apps?
Some core banking suppliers only supply part of the full Core Banking system, that is, the Core Banking engine that includes a back office. As a result, you could have to look for another front-end application supplier or manage their development in-house. Even though this scenario could seem annoying, there could be serious problems during the integration stage.
Core banking Back-office
Does the company that provides the Core Banking system have an all-inclusive back-office solution?
Although this was initially undervalued, it is important to note that some providers only offer Digital Banking solutions and apps that are specifically made for customers. This could lead to a difficult deployment process where you have to find another Core Banking engine provider and make sure these systems are compatible so that integrations work well.
Accounting and Reporting
Ask about extra features in addition to standard banking services like accounts, IBAN creation, and payment processing. Is there a strong general ledger (accounting) and reporting capabilities in the Digital and Core Banking system to satisfy regulatory and financial requirements?
Verify whether your accounting department can generate customized reports using the Core Banking system's capability for daily accounting. To ensure smooth reporting procedures, look for capabilities like data export or integrated reporting.
Customization of the Solution
It's important to understand the extent of flexibility provided, even if many providers of Core Banking or Digital software make a big deal out of customizing options. Throughout the whole business lifecycle, the solution should support customization for smooth business growth and continuity. This entails having the flexibility to adjust throughout the early phases of business operations and to accommodate further growth. Customization should include changing business procedures, adding fields for end-user applications, and customizing back-office interfaces. It shouldn't stop at just adding a new provider or branding an application.
Technological Points to Remember
Consider a range of technological factors that may impact your choice and subsequent business operations when selecting a Core Banking software vendor. Ask your provider the following queries:
To what extent can the technology be effectively integrated with external parties like banks, financial institutions and other BaaS providers?
Is it possible to switch from a SaaS to an on-premise solution?
Does the system have a completely modular, microservices architecture, with independent components operating or seamlessly integrating with one another?
Can the provider's technology meet your needs going forward without being overly advanced or antiquated?
What is the popular and versatile programming language that was used?
How well does the back-office interface blend substantial capabilities with simplicity for ease of use?
Financial Matters to Take Into Account
Cost is of the essence, and Core Banking solutions come in a wide range of costs. Make sure you comprehend all of the associated costs, such as:
Setup costs
The prices and costs of solutions can differ significantly. For example, SaaS setup costs can vary from €40k to €500k. Various Core Banking software vendors may take different tacks; some may charge more for each integration, while others may put more of an emphasis on customisation expenses. It is recommended to ask your supplier for clarification on any estimated costs, such as:
Setup price;
Integration costs (some providers may charge a fixed rate, while others may offer them for free);
Customization costs, and whether the service provides free staff hours for customization
Monthly payments for software maintenance or SaaS solutions;
Transition costs (including any discounts or financial perks) if switching from SaaS to on-premise solutions
Support
Think about the degree of assistance that your supplier offers. Different support tiers can be needed, depending on your IT resources and goals for business growth. As your company expands, providing 24/7 support becomes essential to match client expectations in a world where digital is king.
Ask about solution updates as well. How often does the provider update security and functionality? Updates on a regular basis are necessary for compatibility with third-party solutions, security patches, and feature improvements.