Independent Banker - April 2024 - 64

ADVERTORIAL SPOTLIGHT
Guest Experts:
Core Technology
Core Modernization Strategies for Banks to Consider
CHALLENGE: With technology moving at a rapid pace and heavy competition flooding the industry, community banks are
constantly being nudged to implement a modern core system. However, banks may not be ready for the investment.
SOLUTION: While a full core transformation is ideal, there are other options available when exploring core modernization.
Bankers can read through the options in this piece, learn their advantages and disadvantages, and determine which one
is best for their bank.
2. Core Intervention
Phil Layher,
Director of
Business
Development
Core Modernization Options
Updating the core isn't all or nothing.
Here are the options available.
1. Core Transformation
A core transformation requires
replacing the existing core platform
with a modern system. Banks may
pursue this option when their core
is obsolete, is a barrier to growth or
compliance, or because their provider
is sunsetting their system.
The advantage - Benefits include labor
and cost savings when automating
manual activities; increased revenue
opportunities with new products; and
improved compliance with enhanced
security capabilities.
The disadvantage - Timeline and
costs vary. Also, a full transformation
may involve large data migrations and
multiple system integrations.
Banks that have five to ten years
left on their core may consider an
intervention. This includes upgrading
the core version, updating the
database or codebase, or enhancing
existing products. The bank can also
add a separate core system to test new
products and capabilities.
The advantage - Banks can modernize
their core and forgo common
challenges, e.g., data migration
complexities, and the risk for potential
business disruptions.
The disadvantage - Older systems may
not play well with newer frameworks,
which can add costs and delivery time.
3. Core Retention
If the core is currently meeting the
bank's expectations and there is no
urgency for change, then there's
always the option to keep it as is.
The advantage - The bank doesn't
have to worry about investing time
or money in a new system and can
research modern core products and
services on their own time.
The disadvantage - Legacy systems
are limited on updates, which are often
necessary to meet today's compliance
standards. Additionally, it can be
difficult to find IT resources versed
in older technology languages and
mainframe systems.
How IBT Apps Can Help
While this information is a great guide,
selecting a new modern core option
may not be that easy. If the bank
desires more guidance, they can
contact us at IBT Apps.
We specialize in modern core and
digital banking technology, and tailor
solutions to fit a bank's needs. If a full
core transformation is a possibility,
we'll discuss expectations, costs, and
deliverables upfront, and support you
throughout the process.
Ready to discuss core options?
Contact us!
Interested in learning more about a
core transformation? Download our
ebook at go.ibtapps.com/full-coretransformation-guide
Phil
Layher
Director of Business Development
Phil.layher@ibtapps.com
512-616-1188
www.ibtapps.com

https://go.ibtapps.com/full-coretransformation-guide https://go.ibtapps.com/full-coretransformation-guide http://www.ibtapps.com

Independent Banker - April 2024

Table of Contents for the Digital Edition of Independent Banker - April 2024