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

Kael TheoWritten by
Published on

Introduction

The modernization of core banking systems remains a top priority for financial institutions, driven by digital transformation, regulatory pressures, and customer expectations. Recently, Requests for Proposals (RFPs) for core banking solutions have evolved to reflect these demands, prioritizing scalability, cloud readiness, and API-first architectures. Institutions are increasingly shifting from monolithic legacy systems to agile, modular platforms—making RFP requirements more complex and vendor selection processes more rigorous.

Key Trends in Core Banking RFPs

1. Shift to Cloud and Hybrid Deployments

Banks and credit unions now explicitly demand cloud-native or hybrid deployment options in RFPs. For example, the Bank of London’s 2022 RFP emphasized “vendor-agnostic cloud compatibility” to avoid lock-in with single providers. Similarly, the European Central Bank’s guidance on digital euro infrastructure highlights resiliency requirements for cloud-based core banking systems.

2. API-First and Open Banking Integration

Over 60% of recent RFPs reference “real-time API capabilities” for Open Banking compliance. The National Australia Bank’s 2023 core banking RFP required vendors to demonstrate pre-built integrations with major payment schemes (e.g., Faster Payments, SEPA) and third-party data aggregators.

3. Modularity Over Monolithic Solutions

Procurement teams now favor vendors offering à la carte modules (e.g., lending, deposits) instead of all-in-one suites. A credit union RFP in Colorado scored vendors higher for “configurable functionality” and penalized rigid, proprietary architectures.

Evaluation Criteria: What Banks Prioritize

Modern RFPs evaluate vendors using weighted scoring models focusing on:

  • Technical Fit (30–40% weight): API specs, uptime SLAs, disaster recovery

  • Regulatory Compliance (25%): GDPR, PSD2, SOC 2 reports

  • Total Cost of Ownership (20%): Implementation timelines, scalability costs

Example: A Canadian bank’s RFP template allocated 15% of scoring to “vendor viability,” requiring audited financials and client attrition rates.

Best Practices for Vendors Responding to RFPs

  1. Map Responses to Evaluation Criteria
    Use the RFP’s scoring rubric as an outline. If “cybersecurity” carries 20% weight, prioritize detailing ISO 27001 certification and penetration testing processes.

  2. Provide Real-World Use Cases
    Instead of generic claims, cite measurable outcomes: “Reduced Core Banking Processing Time by 40% for [Bank X] via our containerized ledger.”

  3. Preempt Procurement Team Concerns
    Address common deal-breakers upfront:

    • Data residency options

    • Regulatory change protocols (e.g., adapting to FCA/OSFI updates)

Advice for Procurement Teams

Conclusion

Future core banking RFPs will likely mandate AI-driven automation (e.g., self-healing systems) and ESG disclosures (e.g., carbon footprint of cloud hosting). Vendors must align product roadmaps with these trends, while banks should adopt dynamic scoring models to evaluate innovation capacity alongside technical specs.

Actionable Takeaway:
Fintechs—benchmark against the Monetary Authority of Singapore’s core banking RFP guidelines. Banks—publish clearer scoring methodologies to attract qualified bids.

FintechRFPs.com offers a curated library of professionally written RFP and RFI templates tailored for the fintech, banking, and payments industries. Whether you’re preparing responses for compliance, API integrations, cybersecurity, or core banking solutions, our templates help you save time, reduce errors, and improve your win rate with procurement teams and institutional buyers.

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Take the next step: explore our growing collection of fintech-specific RFP templates and boost your bid quality—visit FintechRFPs.com today.