Independent Banker - April 2020 - 19

Next: These community banks found their lending niche
would save you time, money and headaches in
the long term, says Charles Potts, senior vice
president and chief innovation officer at ICBA.
Be as specific as possible in this analysis. This
will allow your bank to focus on finding the best
partner for the problem you're seeking to solve,
without getting saddled with unnecessary bells
and whistles.
have to be especially careful to understand
what you are paying for. Cost alone shouldn't
be a deciding factor, but rather, what do you get
for that price? Ask questions such as: What's
included in the subscription fee? Are training
costs extra? What about upgrades or customization
of the product? How would the cost be
different if we were to add features?
A provider should be willing to negotiate,
2
Can we pick and choose which modules
to use, versus buying an entire suite of
products?
The more discerning you can be, the less likely it
is you'll end up with something you don't need,
bankers say. Carefully consider whether a solution
makes sense for your specific needs, because
it's easy to overbuy when it comes to regtech.
" You can buy the biggest technology for the
most money, but if it's not doing what you need it
to do, then you're wasting your time and money, "
says Mason Dees, chief technology officer at
$1 billion-asset Blue Ridge Bank in Luray, Va.,
which recently contracted with Adlumin for security
information and events management.
3
Can the product be customized to our
needs?
Some providers are more willing than others
to customize their software for a specific bank.
This may or may not be important to you, but,
at the very least, it's a good question to ask. It's
also wise to ask whether the provider works with
other similarly sized banks to make sure it will
be familiar with the needs of a community bank
like yours.
4
How does the provider stack up in
terms of technical support and training
for us?
With any new product or solution, it can take
time to bring banking staff up to speed. But if the
provider is just going to drop you and run after
the bill is paid, it's not a partnership worth pursuing.
Talk to the provider's other customers to
get a sense of the ongoing support the provider
offers and whether there's an additional cost for
those services.
5
How much will it cost?
This is the elephant in the room, and you
of bankers cited
inadequate
staffing as a
top obstacle in
implementing
an effective
compliance
program
Source: Wolters Kluwer
Cheryl Winokur Munk is a writer in New Jersey.
independentbanker.org Q 19
says Ryan Todd, information security officer at
$838 million-asset Guilford Savings Bank in
Guilford, Conn., which started outsourcing some
regtech to Ncontracts about two years ago. He
suggests you think ahead in terms of additional
solutions you might want to implement down
the road. Start with two modules because it's
more manageable, he says, but let the provider
know you're considering adding capabilities.
Knowing this, a provider may be more willing
to negotiate a more favorable pricing structure.
One cautionary note: Don't expect to reap cost
savings right away, Todd says, because efficiencies
won't become apparent until the second
year and beyond.
What are the provider's practices
around information and security?
The last thing you want to do is work with a
provider that isn't set up to protect sensitive
information. To that end, be sure you're comfortable
with the provider's assurances that its
technology is secure and yours will be as well,
says Dees of Blue Ridge Bank.
7
Will this be a one-off transaction or an
ongoing partnership?
45%
Because the regulatory environment is constantly
in flux, " an ongoing partnership is more
important than a transactional one for most
community banks, " Potts says.
He likens the process of choosing a regtech
provider to that of building a house. Think about
it like this, he says: Is the provider going to hand
you a hammer and tell you to go build a house?
Or, are they have going to give you a hammer, a
toolbox, a blueprint, a list of materials and a contractor
to help you build the house? The latter is
the provider you should choose.
6
Quick stat
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Independent Banker - April 2020

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