When bringing in a new banking technology vendor, one of the most important parts of the process is the contract negotiation. With the right contract in place, your bank can move forward knowing you are getting the technology you need at a price that works in your budget.
- Michael Wofford, Consultants & Advisors has over 45 years of experience in community banking consulting. Our team has helped over 225 banks negotiate the bank technology contracts they need. Over our years in the field, we have built a cost database that we use to determine whether or not your contract offers fair pricing. That knowledge and research positions us to be a powerful partner when negotiating banking technology contracts.
Contract Negotiation Services Help Banks Save Money
After working with over 225 community banks in Core Selection and Contract Negotiation, we have found that most banks are able to save significantly with our contract negotiation service. While the amount of savings varies tremendously based on a number of factors, such as the vendor, the time since the prior contract and other factors, we see a minimum savings of between 7 and 12 percent on their total technology spends after our thorough technology negotiation services. Many of our clients are able to save much more than this.
Using our data on industry benchmarks and price points, we are able to help our banking clients ensure that they are agreeing to the best possible contract. While we cannot guarantee any price savings from contract negotiation, we do believe that we have the knowledge and negotiation skill to help your bank achieve the lowest possible cost on your technology services.
Comprehensive Negotiations Ensure All Aspects Are Considered
When it comes to contract negotiation, the focus is often on the overall cost, but these contracts go far deeper. At L. Michael Wofford, Consultants & Advisors, we utilize an extensive checklist to ensure that negotiations cover all important considerations. This checklist includes:
• De-conversion costs
• Data requirements
Our goal is to help you agree to a long-term contract that you can live and grow with as your bank develops.
Contract Negotiation as Part of Core Selection Services
For our clients who come to us for Core Selection Services, we have worked contract negotiation into the process. In these cases, the contract is only negotiated with the selected vendor after all proposals and integration requirements have been thoroughly analyzed. The end result is a positive contract negotiation process for all involved.