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)