Gonzo Banker: 5 Tips for Selecting Bank Software

Selecting any type of software for your bank, such as document management software, is a decision that should not be made lightly. There are a number of factors to consider when choosing the bank software that is the best fit for your company.

Why isn’t your current system working? How have your needs changed since it was implemented?

As discussed by our friends at Gonzo Banker in a recent webinar co-sponsored by Alogent, here are five steps to take when selecting bank technology.

1. Business Needs Assessment

Begin by making an inventory of all of the technology you currently use. You’ll likely discover some technology that you’d like to keep and interface into, some technology that you’d like to replace, and possibly even identify some unknown technology that no one knew about. During this process, you may discover that your current system meets your needs but hasn’t been implemented properly. The main goal of the business needs assessment is to gain an understanding of your organization, strategy, and need for technology.

During the business needs assessment, there are several exercises to participate in. Benchmarking is a way to set a standard with the technology you are currently using so that you’ll be able to compare later statistics to make sure that you are seeing increased productivity as a result of your technological changes. Interview key stakeholders, business line managers, IT, and end users to understand their view of your current technology and challenges associated with it. This is a great way to understand the processes as well as what will be impacted in a software conversion. The Conversion Project Readiness Assessment (request more information here) helps identify your financial institution’s capacity to handle a system conversion.

2. RFP Best Practices

Describe your current business and technology environment, list all systems used, and include business issues that require a narrative response from potential vendors. Do some initial research before releasing the RFP (request for proposal) and search for vendors that look like they will be a good fit for your institution’s needs.

3. RFP Response Analysis

Narrow your list to 4-5 vendors and ask them for a proposal and a bid. Conduct a side-by-side comparison to understand what each vendor can provide. Combine the unit, license, maintenance, and transaction costs provided by each with the financial institution’s transaction and account volumes as well as anticipated growth rates to reach an all-in five year cost for each vendor’s proposal. By comparing the vendors side by side, you will be able to see which vendors meet the most requirements.

4. Vendor Demonstrations

Depending upon the type of system you’re seeking, it may be helpful to invite vendors to conduct demonstrations to help you filter down to a finalist. Create an agenda for the demonstrations with guidelines to help you make sure you see what you need to see. Ask each person on your selection committee to use a rating sheet for each vendor.

5. Make the Final Decision

Utilize your vendor rating sheet to help the decision remain objective. There are five key factors to examine:

• Functionality
• Vendor strength (how many clients do they have, is the company financially stable, etc.)
• Price
• Risk
• Software architecture

Don’t be afraid to ask other banks about the vendors you are considering. Doing so can pay huge dividends and help you avoid disaster.

Looking for a better way to manage documents? Contact our team at Alogent for a risk-free consultation of your needs.