Selecting the right digital banking solution is one of the most important decisions banks and credit unions need to make. Consumer and business expectations of digital banking have increased substantially over the last decade. Those institutions that fail to design a compelling digital experience may lose customers to direct competitors, as well as to neo-banks and fintechs.

Despite the benefits of switching to a modern digital banking solution, doing so comes with risks. The potential impact on customer experience, complexity of integrations, operational challenges, and other costs make changing digital banking solutions second only to migrating the core banking system in terms of risk. An inadequate solution, or problems integrating it, may be immediately visible to customers.

How to select the best digital banking solution

Whether banks and credit unions should upgrade their current digital banking solutions depends primarily on how well their current solution meets their business objectives, overall product set, and target audience. Banks and credit unions still using a legacy solution from their core banking vendor, such as those with basic account balance and transaction viewing functionality, might find it particularly worthwhile to explore their options.

Sorting through those options can be daunting. The marketplace has grown from a limited set of simple solutions provided by traditional core banking vendors to a broader range of solutions from both core vendors and new entrants. Although it is impossible to choose a single solution that is best for all financial institutions, the five considerations below are a starting point for the decision-making process.

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