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Michael Carter

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Recent Posts

The Core System Conundrum

Posted by Michael Carter on Nov 8, 2017 9:00:00 AM

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Replacing a bank or credit union’s core system is not a decision to be taken lightly. A conversion to a new software provider can easily take more than a year in a best case.  These projects have often been compared to a heart transplant – very expensive, high risk and resource intensive. They also usually consume IT bandwidth that is needed to respond to a litany of business priorities such as the front office channels, products and services consumers depend on daily.

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Topics: bank vendor management

“Trust, but Verify” – When Managing Vendor Contract Negotiations

Posted by Michael Carter on Oct 25, 2017 9:00:00 AM

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Ideally, a good business partnership should result in a “win/win” for all parties involved. Vendor relationships are no exception. No vendor will last long if their approach is predatory toward their clients. 

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Topics: Vendor contract negotiation, Vendor contract negotiations

The Next Generation of Mobile Banking

Posted by Michael Carter on Oct 18, 2017 9:00:00 AM

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In my last post, I recounted the extent to which the iPhone transformed the very notion of mobile banking. Let’s now shift the focus to catalysts for the next wave of banking innovation.

While the iPhone’s quantum leap occurred in 2007, its full impact on financial services didn’t emerge overnight because it took developers some time to leverage the opportunities this new platform enabled, and then another chunk of time for many financial institutions (FIs) and mass market consumers to embrace those capabilities. These phases were essential to making the smartphone the indispensable tool for navigating modern life, and they would be and will be repeated on rare occasions. 

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Topics: Vendor Contract Management, Vendor contract negotiation, mobile banking

How the iPhone Changed Banking and Vendor Contract Negotiations

Posted by Michael Carter on Oct 4, 2017 9:00:00 AM

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As you certainly must know – unless you are returning from a long, wireless sabbatical spent in a cloister of monks sworn to silence, the iPhone recently celebrated a “big” birthday.  The device that changed most everything about banking, shopping, driving and more is 10 years old. 

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Topics: Vendor contract negotiation, Vendor contract negotiations, strategic sourcing, iphone X

Core Conversions: Are Financial Institutions in Denial or Pursuing New Approaches

Posted by Michael Carter on Aug 18, 2017 12:00:00 PM

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Much has been written about the “stickiness” of consumer payment apps and their value in cementing bank and credit union relationships with customers and members, but behind the scenes at most financial institutions (FIs) there is a far stickier relationship.  In this relationship, the bank or credit union is the customer and the cement composed of those mission critical services provided by their core processing vendor.

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Topics: Vendor Contract Management, Vendor Contracts, strategic sourcing

How Tech Trends Lead to Longer Vendor Contract Rosters

Posted by Michael Carter on Aug 9, 2017 11:00:00 AM

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Most bankers would agree that, all other things being equal, minimizing the cost of complexity is a key operational goal, which normally means consolidating around a limited number of financial services vendors. The big “gotcha” in the above statement, however, is that all other things are rarely equal, and recent industry trends reveal that other factors are at work.

In a perfect world, core banking service providers would serve as one-stop shops for ancillary products like mobile banking and remote deposit capture as well. In fact, an acquisition spree by the cores over recent years was aimed to round out their portfolios and solidify that single-source status. Recently, however, newer startups have delivered compelling enough innovations to prompt financial institutions (FIs) to expand their horizons. 

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Topics: Vendor Contract Management, Vendor contract

What to Consider When Working With FinTechs

Posted by Michael Carter on Jun 29, 2017 11:00:00 AM

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In less than a decade, the smartphone has become essential to our daily lives. Perhaps ironically, its primary function of allowing us to make a call at almost any time and anywhere has been superseded by a dizzying array of other activities it facilitates, including banking. The convenience and accessibility with the smartphone and subsequent digital devices, e.g., tablet, wearables, etc., has changed things radically for financial institutions (FIs). Today, consumers determine how, when and where they will access financial services. To say this change has complicated things for banks and credit unions is an understatement.

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Topics: Vendor Contract Management

How to Cost Effectively Monitor Vendor Contracts

Posted by Michael Carter on Jun 21, 2017 9:00:00 AM

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A study conducted by the International Association of Contract and Commercial Management (IACCM) found that poor vendor contract processes cost companies as much as nine percent of their total revenues. Although this was a cross-industry study, there is little reason to believe the financial services sector fares any better or that the picture has improved since 2015. With so much money being left on the table and the drumbeat for cost efficiencies sounding as loudly as ever, financial institutions are seeking new ways to make this area easier to manage more effectively.

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Topics: Vendor Contract Management, Vendor contract