Pub. 5 2010-2011 Issue 6

March/April 2011 23 Extraordinary Service for Extraordinary Members. The EFT You can TRUST NetWorks is the Electronic Funds Transfer (EFT) service provider that Nebraskans have used and learned to trust like family for over 30 years. Our highly experienced staff is extremely knowledgeable and resourceful when it comes to assisting your institution. Give us a call to learn more about our services, you’ll have the opportunity to talk to someone who truly cares about and understands your EFT service needs. www.netseft.com Toll Free 800-735-6833 Local 402-434-8202 the vendor that you will NOT auto- renew. This does not mean you won’t eventually renew, but it protects you from triggering this clause in advance of contract negotiations. Another word on contracts: Even if you have recently renewed a contract, you may find your vendor open to fur- ther negotiations that can reduce your costs and improve service and product offerings. Banks are under tremendous pressure to reduce costs to offset loan losses, lost fee income, or to improve profitability. Your core processing ex- pense is no doubt a large part of your budget. Reductions here can substan- tially improve your bottom line. In addition to pure cost savings, you also may find that your vendor will offer, at little or no cost, ancillary systems that you may be paying hard dollars to third parties for today (itemprocessing, Internet banking, and loan and teller platform systems are examples). Things You Can Do Now 1. Become very familiar with your cur- rent contract for core processing: terms, expiration, contingencies (sold, merged, discontinued, etc.). Document this for your vendor management program, as well as your core evaluation. 2. Survey your end users to iden- tify any significant feature/function problems, or any support problems from your current vendor. 3. Formalize this list, and meet with your current vendor to discuss and resolve any issues, as well as to discuss their specific plans for your product. Consider discussing cost reductions, additional applications, etc., as noted above. 4. Develop a “short” list of comparable products from other vendors, and initiate a program to evaluate them. 5. If you have already been served notice of your vendor’s intent to dis- continue support of your product, accelerate your review into a full- blown core evaluation effort, so that you are in control of your timetables for conversion, training, etc. 6. Consider professional help. An industry expert who has managed dozens of system selection efforts brings valuable experience to your process, allowing you to make the best decision in the shortest amount of time. Considering the hundreds of thousands of dollars you will be spending over the life of a contract, the investment in a consultant is well worth it. Z A 30-year industry veteran, Trent Fleming works as a trusted adviser to financial institutions on matters of technology and strategy. He has worked with banks on matters as diverse as strategic planning, business continuity, employee education and training, and operational efficiency. He serves on the faculty of the Bank TechnologyManagement School at theGraduate School of Banking at the University of Wisconsin-Madison, and regularly contributes articles to industry publications. Learn more about vendor management by attending the NBA’s upcoming March 28 webinar, Managing Your CoreVendor inChallenging Times. Formore information about this webinar and others, visit www.nebankers.org/public/edsection/telesem. html or contact the NBA Education Center at (402) 474-1555 or educ@nebankers.org .