Thank you to everyone who attended MK Decision’s webinar Master the Vendor Selection Process. A special thanks goes out to Kevin Minton, First Bank of Alabama’s Information Security Officer and Vice President, for his unique insight into the best practices when choosing a FinTech partner.
If you are looking to plan for your institution’s digital future, but may have missed the webinar, do not worry! We highlighted key takeaways to assist in your vendor selection process.
Partner with a FinTech Vendor for your Digital Transformation
The top four megabanks account for 57% of the United States’ banking technology spend. As a result, community financial institutions struggle to compete with smaller IT budgets and fewer in-house resources. Who can help these financial institutions achieve their digital transformation? Agile, FinTech vendors like MK Decision.
Assemble a Multi-Departmental Team
Before taking your digital leap, you must build a multi-departmental team to identify department needs and requirements. Define top priorities regarding new additions to your services, current enhancements, and reductions.
Put Your Needs in Charge of the Project
With your project team now in place, it’s time to construct an action plan. How are you looking to grow? Determine which Key Performance Indicators (KPIs) should be set as a measurement for your digital transformation success. If your institution is looking to increase applications with online channels, record how many applications you are currently receiving either online or on paper.
When looking for vendors, have a clear understanding of your digital goals. What features do you want to introduce? Which products are you looking to offer? Does your vendor support both sides of the balance sheet, or is their product suite limited? Think about the implications each of these questions could have on your long-term partnership.
Outline key features that would set a vendor apart, for example:
- Online shopping experiences
- Real-time identity verification
- Automated credit decisioning
- Core processor integrations
Build a Requirement Traceability Matrix
After determining your requirements, create a traceability matrix listing each member of the project team’s:
- Priority Level
Ensure each requirement is captured and agreed upon by your team before getting started with a vendor. Building a matrix will allow your team to evaluate how vendors measure up against one another.
Create a Vendor Scorecard
Now that you have defined your institution’s requirements and have a visual of your digital transformation, it is time to evaluate your potential vendors. Determine which attributes are most important to you and create a vendor scorecard.
The MK team outlined our top considerations we look for when it comes to selecting a partner.
- Cultural Fit
- Financial Products Supported
- Customer Experience
- Banker Experience
- Reseller Integrations
- Financial Products Roadmap
- Due Diligence
- Legal Agreement Terms
The weight of each attribute is dependent on your institution and should be approached with as much consideration as your requirements. Partnerships lend opportunity for future growth beyond their current product suite. Ask yourself, how is your partner projected to grow over the next five years? Does their roadmap align with yours?
Remember the vendor selection process takes time. If you cannot afford to do it right the first time, you may not have the opportunity a second time around. Selecting a vendor should be strategic to ensure your institution is on a pathway to success.
Strive for Continuous Improvement
After your implementation, measure the KPIs your team defined before launching your digital transformation. Have you experienced growth? Where is there room for improvement? Continuously evaluate your digital transformation to ensure your FinTech partner exceeds your expectations and plans for your continued success.
Poll Results: Biggest Challenge When Selecting a Vendor
While this may seem like an enormous undertaking, you are not alone. After surveying our webinar attendees, we found that the biggest challenge when selecting a vendor was comparing vendors. By utilizing these helpful tips, ensure your vendor selection process is seamless and well-executed.
Launch Your Digital Transformation
Community financial institutions across the country are taking the first step towards going digital. Get started by watching MK’s webinar here!