Performance Consulting Solutions for Banks


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Case Study: Core Technology Selection

Bank Selects CMPG to Assist in Core Technology Selection and Acquisition

At this bank, the Chief Administrative Officer (CAO) and the Chief Operations Officer (COO) were jointly responsible within the Executive Leadership Team for finalizing the selection of core processing technologies and the deployment basis (in-house or outsourced) for this multi-billion dollar institution. A series of acquisitions had culminated in processing with several of the industry core and ancillary solutions providers. To align the organization, there was a requirement that account processing become resident in a single solutions set, and where duplicity existed, the organization take advantage of the combined organization size to gain further economies of scale.

Of critical importance was the need for objectivity in the evaluation and the need to have a strategic direction identified within a short evaluation period, so that final solution selection and vendor negotiation could proceed.

The Executive Leadership Team set out to secure assistance to accomplish the following:

  • Identify all options available for core and ancillary processing
  • Develop a decision support framework for the evaluation and selection of core processing and ancillary supporting solutions
  • Develop a vendor negotiations strategy
  • Create an evaluation model to compare solution offerings
  • Review and recommendations on contract terms
  • Participation with the client in contract negotiation

The project focused on ensuring that all viable core processing and supporting application suites were included within the evaluation. The decision support matrix was crafted to ensure equal participation and influence from each stakeholder. Solution selection and contract negotiation were predicated upon a formal process developed by CMPG and approved and executed with key executives.

For example:

  • How could the organization financially benefit in changing the delivery method of core banking application services (in-house versus outsourced processing)?
  • Where is there opportunity within the vendor portfolio to leverage lower cost economies?
  • What are the solution strengths and weaknesses of available core banking and supporting applications?
  • What solution best meets the defined objectives of the organization now and in the future?
  • What are the risks and possible rewards with changing solution vendors?

A plan was drafted that allowed the completion of the project over a 120 day period. This included:

  • A participative evaluation of a decision support matrix
  • Identification and prioritization of areas of consolidation and economies of scale
  • Administration and completion of a vendor bidding program
  • Recommendation on the improvement to processing contracts
  • Finalization of a vendor solution suite selection at favorable terms

Company:Southern Regional Bank
Asset Size:$4 Billion
Services:Project Management
Duration:6 Months
Key Challenges:
  • Identify all options available for core and ancillary processing
Key Benefits:
  • CMPG delivered the market review of solutions and contract opportunities within the prescribed timeframe, where the organization lacked the internal knowledge to complete this task
  • CMPG administered the receipt of vendor processing bids
  • Detailed sourcing strategies emerged from the analysis of presented vendor solution options and pricing
  • The approach allowed executives to preserve any pre-existing relationships with solution vendors by using CMPG as the evaluation and decision support intermediary
  • Achieved results exceeded all executive expectations