EP63: 10 steps for effective core banking system selection

Core Banking Systems are critical to a bank’s competitiveness, and selecting the wrong platform can lead to major opportunity losses. Despite many vendors offering proven solutions, success depends on choosing a system that truly fits the bank’s business strategy and future needs. Based on extensive regional experience, Cedar outlines a structured, objective approach to selection. Key steps include clearly defining and prioritizing business owned requirements, choosing the right sourcing model (prime vendor vs. best-of-breed), and fixing evaluation criteria upfront. A transparent RFP process, disciplined solution evaluation led by business users, and rigorous reference checks are essential. Detailed contractual and financial terms, including total cost of ownership, must be carefully assessed to avoid surprises. When these steps are executed well, half the project is already complete, significantly improving the chances of timely, successful implementation and long-term value realization.