Changing Cores Doesn’t Have to Change Everything – Or Should it?
Change is constant. That’s especially apparent in today’s core banking platform space. The recent acquisitions in the marketplace will undoubtedly encourage some financial institutions to explore changing core providers.
I don’t have to tell anyone that changing a core isn’t exactly a small undertaking. Converting from an existing core banking platform, or even just upgrading, is a major project that impacts the entire institution. It’s like telling your 4-year-old there is no Santa Claus – you don’t want to even think about doing it.
However, banks and credit unions are using the merger and acquisition activity as an opportunity to re-evaluate their core systems. Many of them are finding that the cost and time involved in a new system is outweighing the cost of staying with the status quo.
What does this technology shift mean for the other systems financial institutions use?
The questions I’m getting from financial institutions are all along the lines of: “If I change my core, can I still integrate my existing document management with the new system?”
The answer depends on whether they have document imaging from their core provider or an independent enterprise content management (ECM) solution. For those using their core provider’s solution, if they change their core, they have to rethink document management, too.
But maybe that’s not such a bad thing. If banks and credit unions are up against a wall with a core provider’s document imaging component when they switch cores (or have to consolidate and share content from multiple acquired financial institutions), it might be time to consider an independent ECM solution that can grow and evolve with other technology improvements. With it will not only come more flexibility, but better workflow, automated retention schedules and more compliance support.
While the acquisitions in the core provider market are causing many financial institutions to take another look at their cores, in the long-term it makes sense to also consider how to evolve their content management strategies. The banking landscape is changing, and investing in an independent ECM solution that can grow and evolve with them is imperative. Financial institutions can’t afford to have their data held captive in silos.
That’s one thing that will never change.