CORE and ancillary technology agreements are often misunderstood. Too many banks treat them like a routine vendor agreement—focused on price, finalized at the last minute, and disconnected from strategy. But that approach can cost banks not just money, but their independence.
With consolidation accelerating in our industry, the decisions made around your next contract—especially the process you follow leading up to it—can have real long-term consequences.
Done right, this is a strategic opportunity. Done wrong, it’s a missed chance that could end up defining the next decade of your bank’s future.
“Prescription without diagnosis is malpractice.”
That’s something we say often because it applies directly to this process. We’ve worked with banks who bring us in after they’ve already chosen a vendor or narrowed it down to two. They want help negotiating terms. But if no one has taken a step back to ask: What are we great at? Where are we headed? What might change in the next five years? — then the contract is being negotiated in a vacuum and the bank is missing a tremendous (and perhaps, last) opportunity.
Negotiating your CORE contract is not just about pricing — it’s about alignment. You need to make sure your vendor, your tools, and your future plans are on the same page. That starts with a solid strategy—not just budget—and that often can be more important than pricing.
Future-proofing matters more than you think
One of the most costly oversights we see is failing to build in contract flexibility for what might happen. Even something with only a 10% chance of occurring needs to be considered—because if it does, and your contract doesn’t account for it, the costs can be massive.
A few years ago, we worked with a bank that wanted to leave their core provider. They hadn’t addressed deconversion fees in their original agreement. The vendor’s opening quote? Exorbitantly high (seven figures). That number should have been a fraction of that, but the contract didn’t put any guardrails in place. We were successful in negotiating that number down for our client, but it’s always easier—and less expensive—when you bake those protections in from the beginning.
Most of the “gotchas” are tied to growth
Another blind spot is how growth is billed. Vendors don’t charge a flat rate for expansion. Different lines of business are billed in different ways—and those fees can add up quickly.
For example, if a bank expects to grow heavily in the digital space and use APIs to connect with fintechs or third-party platforms, the vendor may charge based on usage. The more you access, the more you pay. If you don’t forecast that and address it in your pricing model, you may find that growth becomes financially unsustainable by year three, four, or later of the contract.
That’s why we spend so much time upfront mapping out where a bank is headed and aligning that with how the vendor bills for each area of growth. Without that clarity, the true cost of ownership can spiral.
Technology buzzwords aren’t strategy
Lately, everyone is talking about AI. Two years ago it was workflow, before that it was CRM. Vendors will use the buzzword of the moment in every demo—but the definitions vary wildly.
One of the things we do is help banks make sense of what’s actually being offered. We sit in on demos with our clients because we ask different questions—and vendors present differently when they know someone knowledgeable is in the room. That’s not about calling them out; it’s about cutting through the hype and making sure the solution actually supports the bank’s goals.
Pick a lane—and own it
A lot of banks try to be everything to everyone. But the truth is, the days of being all things to all people are over. The most successful banks know what they do best—and lean into it. The others? Many of them get acquired.
When we work with a bank, we guide them through a discovery process to surface what they do well, where they’re growing, and what matters most. We ask the uncomfortable questions. Sometimes, we’re the first ones pushing leadership teams to define a real strategic path forward. But that clarity is what allows you to build a contract that truly supports your direction, not just the status quo.
Final thoughts
CORE contracts aren’t just technical—they’re transformational. But only if you treat them that way.
Before you discuss pricing, before you look at vendor comparisons, take the time to understand your strategy. Make sure the tools you’re choosing—and the terms you’re agreeing to—are built for the future you want. Because in this space, you don’t know what you don’t know—and that can be a very expensive problem.
In the end, your CORE contract needs to do so much more than fit your budget. It needs to fit your goals, your growth, and your future. Choosing the right partner—someone who understands both the technology and the goals of your institution—is one of the most strategic moves you can make. And it can make all the difference in your success.
