Our Viewpoints

Our Viewpoint

Driving More Efficiency from Your Core Solution

September 27, 2013

Today’s economic and regulatory environment is challenging financial institutions to look for more ways to leverage their core system to meet customer expectations, while at the same time creating operational efficiencies and reducing costs.

An obvious place to begin is to increase efficiencies among your staff. Financial institutions are looking for their core solution to run a greater portion of their enterprise operation versus using many stand-alone applications. Accordingly, integration between the applications an institution does use and essential core functions – deposits, loans and customer management – is critical. Faced with lower staffing levels and increasing customer expectations, financial institutions need to carefully scrutinize each additional application they choose to run. Aside from reducing the obvious burden on IT staff, single-sourcing also eases the regulatory burden of managing many vendor relationships, training on several discrete systems, and the overhead of backups, maintenance and upgrades.

Another issue for financial institutions that are examining efficiency to consider is whether to deploy the core in an in-house or outsourced environment. A case can be made for either deployment model depending on many factors; however, finding a balance between optimally leveraging existing IT staff and over-staffing information technology just to support the infrastructure of an in-house system is a key part of the analysis. Most institutions employ some level of internal IT staff dedicated to employees’ day-to-day needs and critical customer channel systems. Debate exists around how much an institution should take on itself and what service level they are committed to provide to staff versus its customers. The decentralized nature of data today allows financial institutions to manage outsourced servers as if they were in-house. Does it matter that the server is down the hall, in the basement, at a centralized operations center or a thousand miles away in a world-class data center? It is our belief that in order to compete, financial institutions need to analyze their needs along with their competency and the expense associated with managing IT staff, and then make the decision about where to invest their IT infrastructure dollars. D+H continues to invest heavily in software as a service (SaaS) based delivery solutions, and we continue to make significant investments in our world-class data centers.

Finally, financial institutions can leverage flexible and efficient core solutions to maximize their product offerings. Aside from the staffing benefits of single-sourcing, integrating channel solutions with the core ensures “one version of the truth” with regard to customer information. This directly impacts not only the information the credit union provides to its member, but also ensures a smooth experience for members accessing accounts via multiple channels. D+H continues to make significant investments in how it enables the back-end core solution to facilitate new products and features, like enabling members to choose bundles of products or design custom characteristics of a specific product, such as CD terms or features of a share draft account, for example. By approaching product management from a customer-centric perspective, as opposed to being limited by what your technology allows you to deliver, you will use a powerful and flexible core solution to create a better customer experience.

D+H’s core offerings help financial institutions of all sizes better connect with their customers across channels through tight integration and streamlined support and training with its market-leading channel solutions. This enables banks and credit unions to do more with less – and to exceed the ever-increasing needs of consumers.


Tom Berdan
Vice President, Market Development

Tom Berdan capitalizes on his 25 years as a banker and 15 years in the banking software industry, using his expertise to serve as vice president of market development for D+H where he manages industry research and outreach. Prior to that, Tom served as vice president of product management where he oversaw D+H product roadmaps, including core systems, branch automation, self-service and business intelligence. Tom holds an MBA from the University of South Florida, Tampa, and a Bachelor of Business Administration from the University of Wisconsin, Milwaukee.