Getting Value Faster Without the Core March 10, 2018January 31, 2019 Q2 Your most important bank branch is closed if you delay launching account opening At Gro, we have fantastic support for core banking systems. We currently support 16 popular cores from all the major vendors such as Fiserv, FIS, Jack Henry, and Finastra (formerly D+H and Misys). We have a number of senior people on our teams that came from those companies and know core banking systems inside and out. I’m convinced banks should launch without support for a core at first. Our core adapters are also designed to be completely reusable so there’s no need to write code during an installation. As a bank administrator, you can simply adjust mappings in a portal and even update arcane settings like account number generation algorithms without changing code in many cases. Despite all this, I’m convinced banks should launch without support for a core at first. Unlike online banking and mobile banking, account opening and loan origination don’t need real-time interaction with the core in most situations. In digital banking, users want to see their balances and recent transactions even if those transactions were only seconds ago. When users apply for a loan or a checking account, they’re submitting their information but they don’t necessarily need to see information generated from the core. It’s an amazing experience when they can get real-time feedback from the core, but it’s not currently the show-stopper many bankers think it is. In this rising rate environment, banks should open accounts for legitimate, profitable customers as fast as they can. The point of reference for most bankers today is almost exclusively with digital banking and payment technologies. Those systems require real-time interaction with the core and require a big-bang rollout to many users at once. Account opening and loan origination systems are completely different. Bankers can control who is routed into these systems even when using advanced digital marketing, CRM, and marketing automation technology. So it’s a big mistake when bankers delay launching account opening and loan origination while waiting for their core integration to complete. Banks can grow deposits and get new customers while the core integration is underway. Almost as important, bankers can get lots of experience using their new digital sales solution without the core. Since they control how many applicants come in, there’s no reason to worry about overwhelming back office staff. And even if you did overwhelm them, it’s probably worth the extra effort if you’re getting profitable loans and new accounts. Even with rock-solid core adapters, most banks struggle to get core connections live. Often there’s a business process and paperwork with the core vendor to allow a new connection, even if it’s technically ready and waiting. Bank network administrators also usually require weeks or months to make the necessary network changes to connect a new system to the core. However long this process takes, banks are missing out on growth if they delay launching their new sales platform. Imagine if customers were banging on the doors to a bank branch to come in and open an account, but the branch staff wouldn’t let them in just because the headquarters is being redesigned far away in another state. In this rising rate environment, banks should open accounts for legitimate, profitable customers as fast as they can.