Core banking software isn’t free, and any fintech business hoping to pick the best core banking partner will want to weigh up those costs, and make sure the software fits into their budget and overall plans. If you are browsing for core banking software options, be sure to have a few things ready to ensure you are making the best choice.
What You’ll Need
First of all, you should have your business plan drawn up. This should be a 3-year plan and should cover any development you plan to make in your business over that time period. The banking officer who oversees your case will need to see this plan in order to move forward.
You also need to have a budget ready, which should also cover the first few years of your business.
If you have a chief technical officer (more info) for your business, they need to be ready to answer any questions and liaise with the banking officer.
Once all of these are ready, you can begin requesting quotes and looking at core banking software and solutions.
Calculating Core Banking Costs
Your core banking needs may change from one year to the next. When you are assessing your choices, try to look ahead at the next 2-3 years and determine what your core banking costs might be in that period, as your business grows and its needs shift. If you go with a cheaper core banking platform right off the bat, you may pay more in the long run, as you add in additional features and try to develop your core banking solution.
Planning ahead for several years is helpful in truly evaluating costs, since each core banking system will have varied pricing plans that can save you money by signing up for multiple years. The costs can change after the initial year as well, so be aware of that. Early initial costs from one platform may not be as cost effective as a platform with consistently competitive rates from year to year.
What Will Your Costs Be?
No matter which digital core banking software you go with, you will need to pay for the software itself, as well as the initial setup. On top of that, there will be monthly subscription fees and maintenance costs, which all vary from one platform to the next.
The monthly fee may change after a period of time, with most cloud core banking plans keeping a fixed rate for the first three years. How much you pay each month, though, can vary based on how many transactions you make. Be sure you know what your monthly fee is going to include for you.