Systems Evaluation & Contract Negotiation

Challenge

- Evaluate core and ancillary contracts in an acquisition environment.
- Both banks used the same core vendor but different platforms.
- Asset size of the combined institution: $900 million.

Solution

- Conducted technology assessment and needs analysis to assess current acquiring bank system usage and develop future system requirements, including new products and services.
- Developed RFP for incumbent vendor with detailed functional requirements for merged banks and reduced Early Termination Fee of target bank.
- Scored RFP and vendor demo responses from working sessions with acquiring bank IT committee members and made final recommendation.
- Negotiated contract terms and conditions with incumbent.

Results

- 9.5% reduction of Early Termination Fee
- 23.5% annual net savings
- $675,000 in additional flex credits over a five year term
- Improved processing solution (new products)

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