Independent Banker - November 2017 - 46

on community bankers' time, it is
quite common for bankers not to be
up to speed on the functionalities and
product offerings available to them
through their core processors, " says
Ware. " Because core processors are
viewed as legacy technology providers,
community banks do not view
them as innovators. " Community
banks should engage in regular
discussions with their core processors,
according to Lorence, to change
this paradigm for the benefit of both
parties. Looking beyond day-to-day
operations also brings bigger goals
and objectives within reach.
" We discovered lots of room at
the table for both parties to communicate
with each other and focus on
what their long-term objectives are, "
he says.
The core processors realize that
community banks are busy serving
their customers and probably only
think about their core systems when
there is a problem, when contract
renegotiation time looms or when
customers request a service the bank
isn't offering. Regular dialogue with
core processors about medium- and
long-term goals could save community
banks headaches down the line.
" If the core processor doesn't know
what you need, they can't be there to
provide it for you, " notes Lorence.
" Bankers need to ask core processors
specific questions and participate
in core processor conferences and
other outreach initiatives so they can
stay apprised and make more strategic
decisions, " adds Ware.
For example, a community bank
could share its goals with its provider,
which could then detail its technological
offerings that could help the bank
realize its defined goals. " Everyone
needs to work together to fulfill the
end result, which is great technology
that serves both the end user of the
community bank and the community
bank itself, " says Lorence.
While IT staff need to be at the
head of the table when community
banks meet with core providers, the
bank as a whole must be represented.
This includes people from the
operations, lending, marketing and
accounting teams. A C-level executive
should also be on hand to " help lead
more from a strategic goals perspective, "
says Lorence.
" Make sure that everyone who
would touch this system has an
opportunity to voice what they need
or how things are currently working. "
Once the dialogue starts between
community banks and core providers,
bankers may be surprised to learn to
what extent core providers can help
them grasp strategic opportunities.
" Core
processors
are
technology
enablers with a
tremendous amount
of information available to their end
users, " says Lorence. " Community
banks should make more time to
learn more about the technology they
currently have versus viewing technology
as a limiter to progress. "
Susan Thomas Springer is a writer
in Oregon.
To read the full
best practices
guidelines from the
community bank
perspective, visit
icba.org.
Statement of intent
What does a good working relationship look like? Here's a sample of some
of ICBA's best practices guidelines for core processors in their relationships
with community banks.
Innovation
Core processors should:
» offer new products and/or
upgrades to existing products
» provide R&D resources and platforms
dedicated to community
bank innovation
» respond to requests for product
enhancements within a
reasonable time frame
» provide support for thirdparty
integrations at a
reasonable cost and support
open-source applications
» offer best-in-class products and
services that help community
banks compete with large banks
and nonbanks.
Support
Core processors should:
» help community banks maximize
products to stay competitive,
agile and relevant
» provide products that are easy
to learn and use
» provide opportunities for community
banks to beta test new
46 ICBA IndependentBanker November 2017
products and updates before
mass introduction
» provide responsive customer
service and timely problem
resolution.
Voice
Core processors should:
» provide opportunities such
as focus groups, user groups
and one-on-one interactions
for community banks to
provide feedback
» allow community banks to negotiate
contract terms and service
level agreements.
Access to information
Core processors should:
» provide user-friendly data to
help community banks identify
customer activity, profitability
and predictive behavior
» provide timely and informative
aggregate industry trend data
and analysis to help keep community
banks aware of changes
in the marketplace.
http://www.qmags.com/clickthrough.asp?url=www.icba.org&id=20402&adid=P46E1
Independent Banker - November 2017

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