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Less Burn, More Return

Assessing the Impact of Vendor Contracts on Community Bank Efficiency & Value

American community banks and credit unions are overpaying for core processing and IT services at a time when cutting non-interest expense is critical to survival and growth. Less Burn. More Return is a new study by the Business Performance Innovation Network that examines key challenges facing community financial institutions, including increased regulation, growing competition from large institutions, and tightening net interest margins. However, the study finds that management teams can find some relief. Institutions are reducing the cost of core services by as much as 43 percent, and by an average of 24 percent, by restructuring vendor contracts based on national pricing data.

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Media Coverage

May 22, 2023 – Study: Credit Unions Dramatically Overpay for Core Systems
Robert McGarvey, Credit Union Times
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May 22, 2023 – Bankers Hiring Hagglers to Negotiate IT Contracts
Jackie Stewart, American Banker
Community banks are spending a little bit of money now in hopes of saving more on core processing and IT-service contracts. Read more »