Tag: core banking systems

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

Banking and Fintech RFP TemplatesPublished 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.

Respond Smarter and Faster with FintechRFPs.com Templates

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

Emerging Trends in Fintech RFPs: What Vendors, Consultants, and Procurement Teams Need to Know in 2024

Banking and Fintech RFP TemplatesPublished on


The financial sector faces unprecedented cybersecurity risks, with global losses from banking cyberattacks exceeding $10 billion annually. As threats evolve, procurement teams are rewriting RFP requirements to address zero-day vulnerabilities, ransomware resilience, and third-party risk management – making cybersecurity the most heavily weighted criterion in 78% of 2024 banking RFPs analyzed.

The New Cybersecurity Baseline in Banking RFPs

Modern banking RFPs now mandate specific technical controls rather than generic compliance statements. The European Central Bank’s 2024 TARGET2-RFP requires vendors to:

  • Implement quantum-resistant encryption by Q2 2025

  • Provide SOC 2 Type II reports with <30-day issuance cycles

  • Demonstrate 99.99% availability during DDoS attacks (with third-party attestations)

Regional banks have followed suit. A Huntington Bank core system RFP (publicly available on SAM.gov) includes 42 mandatory cybersecurity requirements across:
• API security (OAuth 2.1 mandatory, disabled HTTP methods)
• Behavioral analytics (AI-driven anomaly detection with <5% false positives)
• Supply chain audits (vulnerability disclosure processes for all open-source components)

Vendor Response Pitfalls and Solutions

Fintech providers often fail cybersecurity scoring by:
Mistake: Citing generic ISO 27001 compliance without mapping controls to specific RFP requirements
Solution: Create a compliance matrix cross-referencing each security requirement with:

  • Implementation status (live/beta/roadmap)

  • Supporting documentation (pen test reports, architecture diagrams)

  • Incident response timelines (e.g., critical patch deployment SLAs)

Example response framework from a winning NCR Corp. proposal to a credit union core processing RFP:
markdown
| RFP Requirement | Our Solution | Evidence |
|———————–|—————————————|———————————–|
| FIPS 140-2 encryption | VaultMaxx HSM | NIST Certificate #3571 (2023) |
| 24/7 SOC monitoring | GuardDuty AI + human analysts | Incident log samples (Appendix D) |

Procurement Team Best Practices

Leading institutions now employ:

  1. Red team testing as part of vendor evaluations (Bank of America’s 2024 merchant services RFP required vendors to withstand simulated APT attacks)

  2. Third-party audits of vendor responses (Wells Fargo uses BitSight for continuous security ratings of shortlisted vendors)

  3. Cyber insurance validation – 64% of RFPs now require minimum $50M coverage with breach response provisions

Future-Proofing Strategies

  1. For vendors: Build “living security documentation” with auto-updated evidence libraries (e.g., links to current FedRAMP authorization packages)

  2. For proposal writers: Include breach scenario walkthroughs demonstrating containment workflows (TD Bank scored vendors 23% higher for this in 2023 evaluations)

  3. For procurement: Adopt NIST CSF 2.0 scoring rubrics with 35% weight on “Govern” and “Identify” functions – the new differentiators in 2024 bids

The cybersecurity RFP landscape will continue hardening, with Gartner predicting 100% of banking RFPs will require attested SBOMs by 2025. Vendors that institutionalize evidence-based security storytelling – not just compliance checks – will dominate shortlists.

Why Core Banking RFPs Demand Precision

Banking and Fintech RFP TemplatesPublished onUpdated on

markdown

 

The selection of a core banking system is a high-stakes decision for financial institutions, often shaping operational efficiency for decades. RFPs (Request for Proposal) for core banking platforms follow rigorous frameworks to ensure technical fit, regulatory compliance, and long-term scalability. This article dissects prevalent RFP requirements, evaluation methodologies, and strategic insights for vendors and procurement teams.

 

Why Core Banking RFPs Demand Precision

 

Core banking RFPs typically exceed 200+ requirements, spanning legacy system decommissioning, real-time transaction processing, and API-led integrations. For example, a 2023 RFP by a mid-sized U.S. credit union (sample structure) prioritized:

 

    • 24/7 uptime SLAs (≥99.99%)

 

    • Regulatory compliance (AML, GDPR, CCAR)

 

    • Total cost of ownership (TCO) over 10 years

 

 

Failure to address these comprehensively risks disqualification.

 

Key Sections in Core Banking RFPs

 

    1. Technical Requirements:

       

        • Multi-currency and multi-entity support (e.g., FedNow integration)

       

       

       

 

    1. Commercial Terms:

       

        • Subscription vs. perpetual licensing models

       

        • Penalties for missed implementation milestones (e.g., 5% of contract value per week)

       

       

 

    1. Vendor Vetting:

       

        • Minimum 5 live implementations in similar-sized institutions

       

        • SOC 2 Type II or ISO 27001 certifications

       

       

 

 

How Banks Evaluate Proposals: Weighted Scoring Models

 

A Nordic bank’s 2022 RFP revealed this scoring breakdown:

 

    • Functionality (40%): API scalability, batch processing speed

 

    • Cost (30%): Implementation + 5-year TCO

 

    • Vendor Stability (20%): Financial health, client retention rates

 

    • Innovation (10%): AI/ML features for fraud detection

 

 

Vendors must align responses to these weights—showcasing cost savings in sections weighted higher.

 

Best Practices for Vendors

 

 

    • Differentiate with Data: Cite benchmark results (e.g., “Processes 1,000 TPS vs. RFP’s 500 TPS requirement”).

 

    • Preempt Objections: Disclose implementation risks with mitigation plans (e.g., phased migration).

 

 

Advice for Procurement Teams

 

    • Standardize Evaluation: Use weighted scoring sheets to reduce bias. Tools like RFP360 automate comparisons.

 

    • Require Proof: Demand client references and sandbox demos for shortlisted vendors.

 

    • Future-Proof Criteria: Include modularity for CBDCs or open banking extensions.

 

 

Future Trends in Core Banking RFPs

 

Expect tighter integration of:

 

    • Sustainability Metrics: Carbon footprint of cloud hosting providers.

 

    • AI Ops: Automated root-cause analysis in downtime scenarios.

 

 

Key Takeaways

 

Core banking RFPs are transitioning from monolithic systems to modular, API-driven architectures. Winning requires vendors to marry technical depth with commercial pragmatism, while banks must balance innovation with risk mitigation. Both sides benefit from transparent, data-driven dialogue—early vendor consultations pre-RFP can surface unseen requirements.

 

For public RFP repositories, explore SAM.gov (U.S.) or TED Tenders (EU).