Feb 2, 2023

3 ways that delaying a software merger – especially Core Systems – will CRUSH scaling efforts for your bank.

Feb 2, 2023 | Brian's Blog

1: An “interim” integration solution quickly becomes permanent
2: You WILL run into more problems long-term
3: It severely limits further growth

Before we dive into these, let’s address the elephant in the room:

Merging Core Systems sounds like the common sense thing to do.
Who isn’t doing that?

In theory, Yes. It’s common sense to merge Core Systems immediately.
But in practice, it’s a considerable amount of work and relatively easy to put on the back burner by using a simple integration that is good enough in the meantime.

Back to our 3 points.

1: An “interim” integration solution quickly becomes permanent.

When banks implement a less-than-ideal solution and spend a few weeks adjusting to it, they often find it to be “good enough for now”.

But the longer you wait,
The more complicated things will get.

Before you know it,
What was once relatively simple is now a VERY tall order.

Best to get it out of the way ASAP

2: You WILL run into problems long-term

It’s not if, but when.

As your subpar integration is forced to handle more and more,
Things begin to break.

Now you find yourself spending time and money fixing the integration when it could have been spent properly merging the Core Systems from the beginning.

And thanks to #3,
You’ll still have to complete that merger eventually.

3: It severely limits further growth

2 different software with a decent integration is manageable,
But how about 3? 4? 5?

It doesn’t take long before it is ENTIRELY unmanageable.

And when you hit that breaking point,
Cleaning up the pieces is going to take a lot of time and money.
AND, it is hard to focus on the next acquisition or merger when the last one isn’t truly complete.

If a tech merger isn’t your #1 priority?
What is?

Digging deep on banks is what I do.

🔔 Find me here, weekdays at 8:30 EST, for insights on banking, data science, and some of my crazy adventures. 🔔

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