Paladin Blog

The government moves at the speed of a glacier with a bad hip. But every once in a while the glacier actually gets somewhere.

Hi, I'm Daniel. And I Was An Idiot.

I’m the CFO of In Vendors We Trust Bank - have you heard of it? I’m a banker just like you. I work hard, I manage my balance sheet meticulously, and I take pride in making decisions that benefit my community bank.

Meet Daniel, The Banker Who Had It All Figured Out..until he didn’t.

Daniel is a sharp, capable community banker. He knows his market, he manages his risk well, and he prides himself on making financially sound decisions for his institution.  So, when the dreaded core IT vendor contract renewal from FIS landed on his desk, he saw it as just another business challenge to conquer.

Let me tell you about one of the worst trading days of my life.

Breaking Free: It’s Time to Rewrite the Rules of Core IT & Fintech Contracts

For years, community banks have felt trapped in a David vs. Goliath struggle with their Core IT providers. Fiserv, FIS, Jack Henry – these Big Three giants have held the power, locking banks into one-sided contracts that often feel unfair and exploitative. But the tide started to turn back in 2016 when the The Golden Contract Coalition (GCC) was launched by our CEO, Aaron Silva in partnership with Pillsbury Winthrop Shaw Pittman (Pillsbury).  Aaron’s company Paladin fs is the only advisory firm to have created an independent, 3rd party coalition designed to battle the Big Three head on.  

The American Bankers Association tried many years ago to tame the Big Three with the formation of their Core Platforms Committee but has largely failed in this endeavor, petering out remaining momentum back in 2022.  Solving the issue of fair contracts will only work if the economic buyers (banks and credit unions) come together in a free market coalition with the confidence and expertise of industry leaders such as Paladin and Pillsbury.  Unfortunately, the ABA does not have experts familiar with Core, IT and Fintech contracts on staff and this is not in their mission to employ them.

The Art of Successful Core IT Negotiations: Best Practices from Banking's Top Contract Experts

When it comes to core IT contract negotiations, community banks face a critical challenge: how to secure favorable terms while maintaining vital vendor relationships. With technology contracts representing one of a bank's largest non-interest expenses, the stakes couldn't be higher.

To demystify the art of successful negotiations, we've gathered insights from our panel of veteran negotiators. 

The Writing's on the Wall - In Disappearing Ink

Attention, community bankers! The tectonic plates of banking technology are shifting, and if you're not paying attention, you might just find yourself doing an impromptu dance on the San Andreas Fault of financial services. The latest tremor? Our friends at the Big Three - Fiserv, FIS, and Jack Henry - are starting to play a high-stakes game of Jenga with their services, and guess who's left holding their breath as the tower teeters? That's right, it's you, the community banks and credit unions.

Fiserv has decided to kick off this party by beginning to ask their clients to ride into the sunset without Retail Online Banking (ROB) and Business Online Banking (BOB) services after December 2026. If you think that's a problem for future-you, think again. In the glacial world of core banking systems, 2026 is practically next Tuesday.

How much am I overpaying for core, IT, and fintech services? 

It’s the most frequent question we’ve received since we started helping community banks and credit unions fight back against unfair vendor agreements over fourteen years ago. 

Naturally, it’s a fair question to ask, but it’s impossible to provide a simple answer to such a complex financial question. Core banking agreements and fintech vendor contracts have so many nuances that it’s impossible to pinpoint the “right” price to pay for these services without hiring an expert armed with market intelligence to analyze your contract — there are just too many factors at play.

I have recently been enjoying this classic TV show with my 10-year-old son. 151 more episodes to go! He is enjoying a classic show his grandparents watched at the same age, but he does not bank with a financial institution running COBOL (Common Business-Oriented Language). Some things stand the test of time. Your core processor running COBOL will not.

The pandemic of 2020 has been a major business disruption and distraction to the community banking industry - and all industries globally for that matter.   Albert Einstein was famously quoted, "In the midst of every crisis lies great opportunity."   This fact is not lost on  the legacy Core & IT suppliers Fiserv, FIS and Jack Henry as they have recently blanketed their current clients with pre-emptive and unsolicited contract renewals years ahead of their maturity dates.   These "Pandemic Deals" as they are being referred to, are finding bankers flat-footed and making many to feel cornered into a long-term, multi-million dollar decision at a great time of uncertainty and when their collective minds are on so many other pressing matters.  Bankers that have contacted Paladin feel these offers are intimidating as some vendors tease "take -it-now-or-leave-it" deals that feel more like a strong-arm tactic than a partnership hug.