Emerging Trends in Core Banking System Requests for Proposals Within the Fintech and Banking Sector

Kael TheoWritten by
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Introduction

Core banking system overhauls are among the most consequential procurements for financial institutions, with RFPs often exceeding 200+ requirements. Institutions prioritize modernization drivers like cloud migration, API-first architectures, and regulatory compliance. Vendors must navigate layered technical, security, and operational criteria while procurement teams balance innovation with risk mitigation.

Key Requirements in Modern Core Banking RFPs

1. Cloud-Native Capabilities

Banks increasingly mandate cloud-native solutions, with 68% of 2023 RFPs referencing AWS/Azure/GCP compatibility. Example: TD Bank’s 2022 digital core banking RFP required “containerized deployment with Kubernetes orchestration,” mirroring trends seen in ECB’s public tender archive.

2. Regulatory Compliance

GDPR, PSD2, and local mandates (e.g., Singapore’s MAS 610) dominate functional requirements. A 2023 Nordic bank RFP allocated 25% of scoring to compliance documentation, including audit-ready SOC 2 Type II reports.

3. API and Ecosystem Integration

Open banking readiness is non-negotiable. RFPs like National Bank of Canada’s 2023 procurement specified “pre-built connectors for 15+ payment schemes” and adherence to BIAN service models.

Evaluation Criteria Breakdown

Technical Assessment (40–50% Weight)

  • Modularity: Scoring for microservices architecture (e.g., 0–5 scale for “customizable product modules”)

  • Uptime SLAs: Minimum 99.9% for transaction processing in 94% of RFPs analyzed

Commercial Viability (30–35% Weight)

  • Pricing Transparency: Tiered pricing models outperform opaque quotes (see Wolters Kluwer’s RFP template)

  • Client References: 3+ live deployments in similar asset tiers

Best Practices for Vendors

  1. Gap Analysis First: Map RFP requirements to your product’s capabilities using tools like Qorus RFPIO or Loopio.

  2. Evidence over Claims: Replace “supports real-time processing” with “handles 2,300 TPS in production at [Client Bank].”

  3. Compliance Packaging: Create a dedicated annex with certifications (ISO 27001, PCI DSS) hyperlinked to audit reports.

Procurement Team Recommendations

  • Standardized Scoring: Adopt weighted criteria matrices like Gartner’s Critical Capabilities framework.

  • Vendor Proof Sessions: Require scripted demos validating 10–15 key workflows (e.g., EOD reconciliation).

Future Trends

Expect AI-driven RFP automation by 2025, with tools like Responsive AI analyzing historical bids to optimize scoring. ESG factors will likely grow from current 5–10% weighting to 15–20% as seen in recent ING Group RFPs.

Conclusion

Winning core banking deals demands precision in addressing technical mandates while demonstrating operational resilience. Vendors should invest in compliance automation tools, while banks must refine evaluation models to balance innovation with systemic risk controls. The next frontier? Real-time RFP scoring integrated with vendor risk management platforms.

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