The Financial Brand Insights - Fall 2021

Josh DeTar, Tyfone’s VP of Sales & Marketing, puts the importance of synergy among vendors succinctly: “As any financial institution evaluates their path for digital transformation, a few key points should be kept in mind. Move at the speed of digital, not the pace of banking. We can’t do it alone, find the right partners. Find partners who focus on building long-term relationships centered around a culture of continuous innovation.” Here are just a few of the benefits of looking to clusters where solutions are already aligned and vendors have synergy with one another: Synergy ● Vendor partners can do more work behind the scenes with less interfacing with the client. ● Technical risk is reduced because kinks have already been worked out, especially with pre-integrated solutions.

choosing a core meant choosing an ecosystem. And so that’s how their choice of Corelation Keystone as their core led to Bankjoy as their digital channel provider and Prisma Campaigns as their marketing platform. According to Mark Dynis, SIU’s VP of Marketing, “The longer you wait, the further behind you get. There’s no perfect time for it and we wanted to jump in as soon as we could. While features and cost are important, we do appreciate vendors that are good at relationships. We value their existing ones, as it makes integration easier for us, just as much as we value their openness to establish new ones with anyone else we may bring on board. Also, we’ve learned that even when the features are there, you can’t take full advantage of them if the vendor treats you as just another client. So how they work with us, intimately knowing our credit union, also matters.” Numerica Credit Union , as another example, has been serving Eastern Washington state and the Northern Idaho Panhandle for over 80 years. When choosing providers, they evaluated and considered Prisma Campaigns as their marketing

solution at the same time as their digital channel upgrade with Tyfone. Here’s what KayCee Murray, Senior Vice President of Information Technology said about how vendor synergy has benefitted their credit union: “Numerica has benefitted from Prisma Campaigns’ partnership with Tyfone as we’ve prepared for our digital banking platform upgrade. Tyfone already understands the power Prisma brings to the table, while Prisma already has a blueprint for how to best match their solution with Tyfone’s platform. Numerica, Prisma, and Tyfone are collaborating to create a plan to ensure our members have a seamless transition to our new digital banking platform (figure 1).”

best-of-breed vendors (smaller, specialized providers that offer an innovative or superior solution for a specific area of focus). One downside of this approach is that tackling elements one at a time can be slow. And by the time they finish the last step, the first one may already need an update.

Approach Two: “Do-it-all” vendor

Banks and credit unions that prefer to manage fewer moving parts, might opt for an approach where they can work with a single, large do-it- all vendor who offers most of the functionality required for the financial institution’s digital transformation. While integration may be pretty straightforward, this approach has its downsides. An important one is that financial institutions are unlikely to get best-of-breed in technology. Which means that in the areas that fall outside of the large vendor’s focus, the functionality will not be state- of-the-art and might require an additional update sooner rather than later. Additionally, many financial institutions have concerns with putting all their eggs in one basket and would rather hedge their bets by working with more than one vendor. Last but not least, large vendors usually have lots of consumers and a more standardized approach, which can be especially hard for the smaller institutions.

Increasing Speed of Digital Deployment

Despite the urgent need to evolve and adopt the latest capabilities, many financial institutions still lack the underlying infrastructure to support automation. Upgrading infrastructure can often be a multi- year (and sometimes unending) process, and while financial institutions can’t rush digital transformation, or avoid building their foundation, there are undoubtedly ways to ease transitions and smooth the road ahead. Banks and credit unions can reap the benefits of digital transformation sooner by getting clear on their strategic objectives and based on that, choosing clusters of best-of-breed solution providers that have synergy with one another and are open to tackling each client’s unique needs with a collaborative, agile and iterative approach. n Prisma Campaigns is an all-in-one marketing automation platform for banks and credit unions that integrates with +20 cross-technology solutions including data providers, core banking and digital channels.

● Savings on integration time and costs.

● Reduced time to market.

No Synergy ● When vendors don’t know each other, the customer is at risk of being a guinea pig for a first-time integration. ● In some cases, service providers have duplicated functionality. ● Often leads the bank or credit union to overpay for integration and connector fees. Vendor Synergy in Action One great example of synergy in action is from SIU , a credit union that has been serving Southern Illinois since 1938. As they researched for a new core, they were aware that whatever choice they made, would also define the set of vendors they could work with in the future. In other words,

Figure 1

An example of a vendor cluster in action

Approach Three: Concurrent

Leading core providers

A third option, one that our partner Tyfone —a provider of digital banking solutions—excels at and that has become our recommended approach, is where a financial institution identifies the key projects that will propel their digital transformation and evaluates best-of- breed vendors who are suited to meet the specific strategic objectives of those projects. Providers are assessed at the same time for their agile mindset, interoperability and synergy.

BI and data analytics

Money moving solutions

Marketing automation

SOURCE: Prisma © August 2021 The Financial Brand

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THE FINANCIAL BRAND INSIGHTS FALL 2021

THE FINANCIAL BRAND INSIGHTS FALL 2021

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