Friday, May 29, 2009

Impact of the Economy on Online Banking Systems Purchasing Decisions

By Mark Brousseau

Today’s economy has presented challenges for banks to invest in new technologies, such as online banking solutions. However, for those banks that can, now is the time to do so, says Joe Spatarella, vice president, sales & marketing, Online Banking Solutions (OBS).

"With minimal activity and deal flow, this is an opportune time to move forward and negotiate an ideal vendor partnership to take you well into the future," Spatarella says.

Below are best practices that Spatarella offers for acquiring and deploying online banking solutions in a challenging and transforming economic climate. "With little or no margin for error, the following could help you win a greater share of customer revenue with a contemporary solution when others are afraid to move," he says.

1. Set your goals: Identify a solution that can differentiate the financial institution in a crowded market. Focus on improved user experience: semantics, navigation and ability to customize at the user level without expensive vendor modifications.

2. Walk a different path to success: Find a vendor that is truly willing to partner and share project risks rather than the 800 pound gorilla who is less likely to negotiate favorable terms or who makes promises that cannot be met.

3. Go with a fixed cost model: Annual license fees and fixed per user pricing is much easier to manage than variable transaction pricing.

4. Purchase in the present, not the future: While product roadmaps are important, be sure the vendor can deliver the product version you purchased at the time you need to deploy it

5. Share in project success: A vendor will be more likely to share the risk and contribute specialized resources if there is also an opportunity to benefit from project success.

6. Watch the clock: Give yourself enough time to make a decision and give the vendor a reasonable timeframe to deliver. Don’t use so much of the project timeline on evaluation that the vendor is left with a highly compressed window for implementation.

7. Minimize the frequency: The solution must be sustainable and scalable so that in 3 to 5 years, you are not looking for another vendor and having to repeat the process with valuable time and resources. Plan for continued success, not failure.

What do you think? Post your comments below.

1 comment:

VIP cards said...

In my point of view the online banking is a really great opportunity for the peoples.It save the time and they have provide quality of works.