10 Things Your Core IT Provider Won't Tell You
When it comes to negotiating and renewing these multi-million dollar relationships once every five to seven years, community banks are at a distinct disadvantage negotiating against their Core and IT service providers – bankers have to know what to demand in advance. Suppliers protect these secrets within a team of highly skilled negotiators, contract writers and lawyers who negotiate hundreds of contracts each year with different institutions – never sharing with you what they negotiated differently with any other institution nationwide. To make matters worse these core vendors have formed a market oligopoly, controlling 93 percent of the industry, effectively blocking community institutions from the chance to receive a fair deal through any lack of formidable competition.
Services such as Account & Item Processing, Internet Banking, Bill Payment, and EFT/ATM services are crucial for community banks to successfully compete against the large banks. However, with these unfair contracts, the deck is stacked against smaller institutions. The ultimate effect of overlooked contract terms is often prohibitively expensive problems for franchises and shareholders during future routine corporate events and mergers.
In this session, Aaron Silva will take the audience through 10 critical issues and negotiating secrets that bankers should know before they sit down at the negotiating table. Silva will discuss his latest proprietary research findings that outline the problems, pitfalls and best practices in restructuring vendor contracts based on nationwide intelligence. Through real life examples of how banks often pay in excess of $1 million more than necessary over the life of their core services contracts, the audience will learn how to dramatically improve their core and IT spending efficiency and better protect their institutions from downstream risks hidden within their contracts.
AARON SILVA, PRESIDENT & CEO OF PALADIN fs AND GOLDEN CONTRACT COALITION
Mr. Silva is a recognized and respected industry leader and negotiations expert standing
for community financial institutions against the powerful oligopoly of Core & IT suppliers. After spending 15 years selling IT services to bankers across the country, Silva recognized that bankers lacked real market intelligence and pricing data necessary to enter these one-on-one negotiations intelligently. This realization served as the catalyst for founding Paladin fs and the Paladin Blue Book in 2007. With more than 100 successful transactions and $135 million in cost reduction since Paladin’s inception - Silva realized the industry still needed a counter-balance to the oligopoly formed by “The Big Three”. In June 2016, Silva launched the Golden Contract Coalition with the unprecedented goal of aggregating large numbers of banks and $1B in combined contract revenue - manufacturing the leverage necessary to put the power back into the hands of community financial institutions and once and for all disrupt the major suppliers’ business models of one-sided, over-priced, and unfair deals.
Silva is a sought-after, entertaining and accomplished speaker for national banking and credit union events as well as an influential writer and industry-wide resource on both strategic and technology issues facing executive leaders of franchises under $15 Billion. Continually receiving the highest reviews from session attendees, he is an energetic, engaging and thought-provoking professional speaker that will add great value to your event. In addition to his professional accomplishments, his research has been the foundation for highly regarded studies on pricing disparities, hidden costs and defective terms in supplier contracts, developed by the Business Performance Innovation Network and other market analysts.