How to Begin a Digital Banking Evaluation Project

Selecting the right digital banking platformvendor is one of the most critical decisions a financial institution can make. Whether you're seeking a more modern experience, greater flexibility, or deeper integration capabilities, knowing where to begin can feel overwhelming.

How to Begin a Digital Banking Evaluation Project: A Step-by-Step Guide for Financial Institution Leaderswas created to help you cut through the noise and move forward with clarity. This guide breaks down the key phases of a successful evaluation-from aligning stakeholders and defining goals to identifying must-have requirements and engaging potential vendors. Along the way, it highlights the key roles involved, common challenges to anticipate, and best practices for laying the groundwork for long-term success.

Whether you're just beginning to explore your options or preparing to launch a full-scale request for proposal (RFP), this resource will help you take the first steps with confidence and purpose.

1. What's Your "Why"?

Before evaluating vendors, take time to clearly articulate why your institution is considering a digital banking platform change. Define the core business drivers - whether it's modernizing outdated technology, improving the user experience, enhancing scalability and security, or enabling third-party integrations. Identify specific pain points in your current system that are holding you back. Most importantly, align your internal teams around strategic goals such as growth, retention, and operational efficiency so every decision you make during the evaluation supports those priorities.

Let's explore some real examples of what led financial institutions to explore new digital banking vendors and ultimately leave their incumbent provider:

Bank, Small

Frustrated by stagnant innovation, persistent bugs, and poor support from their incumbent provider, this institution realized it was time for a change. Despite repeatedly voicing concerns, critical issues (such as long-standing Android login failures) went unresolved, leading to declining satisfaction scores and damaging app store reviews. Ultimately, they needed a partner that could keep pace with evolving technology and protect their brand reputation.

Bank, X-Large

This institution ultimately chose to leave their incumbent vendor after years of struggling with a drawn-out, painful implementation and ongoing product challenges. They found their incumbent to be reactive rather than strategic, with high staff turnover, slow execution, and a poor cultural fit. What began as a core conversion turned into a full digital search when they realized they needed a true partner-not just an order taker-to support their growth and vision.

Credit Union, X-Small

This institution ultimately left their incumbent provider after repeated delays and broken promises around their incumbent business banking platform, which hindered a critical core conversion tied to a recent bank acquisition. They grew frustrated with product immaturity, inconsistent UX across channels, and a lack of fintech integration options. Combined with bugs in basic retail functionality, they sought a proven, fully developed solution that could deliver immediately.

Credit Union, Small

After decades with their incumbent vendor, this credit union decided to leave due to declining innovation, lackluster support, and an inability to scale with their rapid growth. Repeated implementation failures, delayed roadmaps, and minimal third-party integrations made it clear that their incumbent was no longer a strategic partner. As they crossed $1B in assets, they needed a modern, cloud-native platform with strong APIs, responsive support, and a partner mindset to help deliver a seamless, scalable digital experience for both members and staff.

Credit Union, Large

This financial institution began searching for a new digital banking provider after seeing member satisfaction and NPS scores decline under their incumbent vendor. They felt the platform lacked the modern capabilities and responsiveness needed to differentiate their experience and keep pace with industry standards. Ongoing challenges with support and backend performance further reinforced the need for a more aligned, forward-thinking technology partner.

2. Build an Internal Task Force

A successful digital banking software evaluation depends on collaboration across departments. Start by forming a cross-functional task force that includes representatives from IT, digital banking, operations, marketing, and compliance. Each brings a unique lens:

• ITwill evaluate core integration, security, and scalability
• Digital banking leaderswill focus on user experience, admin tools, and daily management needs
• Operationscan identify internal workflow gaps and process improvement opportunities
• Marketingwill assess the platform's potential for user engagement and personalization
• Compliance and riskensures the solution meets regulatory and fraud prevention standards

Appoint a dedicated project lead and an executive sponsor, ideally someone at the VP or C-level to champion the effort, remove roadblocks, and ensure alignment across stakeholders. Take time early on to define each team member's role and area of input. The project lead and their team will lead vendor communications, manage the RFP process, and document technical requirements. A well-structured team helps maintain momentum and ensures the evaluation reflects the full scope of your institution's needs.

3. Document Requirements Early

Before engaging vendors, take the time to clearly define what you need in a new digital banking platform, and why. Align internal teams on your non-negotiables versus nice-to-haves, so everyone is evaluating solutions through the same lens. This clarity will keep your process focused and help you avoid being distracted by features that don't serve your goals.

This stage is also about laying the groundwork: conducting market research to understand industry trends, emerging technologies, and potential partners. Just as important is identifying the right internal stakeholders-from IT and operations to digital and user experience-to ensure cross-functional input and readiness from the start. Doing this upfront sets you up for a more efficient and informed evaluation.

View the Sample Needs Assessment to help your stakeholder team begin capturing and organizing the business needs driving your search for a new digital banking platform.

4. Understand the Market Landscape

From platform-based solutions to point products, legacy systems to modern cloud-native offerings, the market is vast and moving quickly. Use this stage to educate your team, explore what's possible, and build a broad view of the vendor ecosystem. The more informed you are now, the more confident and empowered you'll be later, and able to narrow down your shortlist on your own terms, not just based on the most eyecatching demos or sales pitches.

Read analyst reports, peer referrals, and user communities to get a balanced view of the landscape. Here are some to consider:

Using Analyst Reports to Guide Your Evaluation

Analyst reports offer unbiased insights into vendors, market trends, and platform capabilities-helping you quickly understand who stands out and why. They're a smart way to narrow your shortlist, validate assumptions, and uncover critical questions early. In short: they help you evaluate faster, smarter, and with more confidence.

• IDC FinTech Rankings: Recognizes leading global technology providers serving the financial services industry.
• Aite Matrix: U.S. Digital Banking Point Solution Providers: Research on platform functionality and vendor support for digital banking solution providers.

Tapping Into Peer Insights for Digital Banking Evaluations

When starting a digital banking evaluation, connecting with peer institutions through user communities and groups is a smart first step. These conversations offer real-world insight into what others have learned-vendor performance, evaluation criteria, implementation challenges, and hidden costs.

By learning from those who've already been through it, you can avoid common missteps, uncover smarter strategies, and make more confident, informed decisions. It's a small investment of time that can lead to better vendor alignment and stronger long-term results.

Begin building your vendor list, but keep in mind: features alone shouldn't drive your shortlist. Focus instead on alignment with your long-term strategy, flexibility, and partnership potential.

7. Align on Budget and Business Case

As you evaluate vendors, it's important to estimate the total cost of ownership including implementation, licensing, integration, training, and ongoing support. Go beyond price alone by identifying key ROI drivers, such as faster feature deployment, improved operational efficiency, increased digital adoption, or stronger user retention. Start preparing early materials that clearly outline the business case, so you can secure leadership and board buy-in when it's time to move forward.

8. Engage Vendors Strategically

Once you've defined your needs, begin reaching out to vendors with purpose. Set up initial discovery calls to assess strategic alignment and cultural fit. Request tailored demos that focus on your institution's specific priorities, whether that's configurability, real-time data access, or self-service tools. Be transparent about your goals, challenges, and any non-negotiables to ensure the conversations are productive and focused from the start.

9. Plan for What Comes Next

A great digital banking evaluation doesn't end with vendor selection - it prepares you for what's ahead. Assess your internal capacity to manage implementation, including IT resources, training needs, and timeline expectations. Start outlining a change management and communication plan to keep staff and account holders informed and engaged. Finally, choose a vendor who does more than provide technology. Instead, find a partner who can support your long-term vision - one that enables ongoing innovation, extensibility, and a true collaborative relationship beyond go-live.

10. Partner with a Consultant (Recommended Step!)

Bringing in a consultant can bring clarity, speed, and confidence to your digital banking evaluation. These experts understand the vendor landscape, anticipate common pitfalls, and can help you define clear requirements, align internal stakeholders, and avoid costly missteps.

Whether you're short on time, navigating internal complexity, or simply seeking an experienced advisor, a consultant can de-risk the process and position your institution to make a confident, future-ready decision.

Key considerations when selecting a consultant:

• Industry Expertise:Prioritize consultants with hands-on experience evaluating digital banking platforms and deep knowledge of financial institution needs.
• Vendor Neutrality:Ensure they remain unbiased and free of financial ties to vendors, so recommendations are objective and in your best interest.
• Tailored Approach:Look for a partner who will adapt their process to your institution's size, goals, and internal capabilities-not rely on a one-size-fits-all playbook.

Next Steps

Choosing a digital banking software partner isn't just a technology decision, it's a strategic move that can shape the future of your institution. By following the steps in this guide, you're already laying the foundation for a thoughtful, well-structured evaluation process rooted in clarity, collaboration, and long-term vision.

As you move forward:

• Revisit your goals often to stay aligned on what matters most
• Engage cross-functional stakeholders early and often
• Prioritize partnership potential, not just product features
• Take your time-this decision deserves it

Need a sounding board or want to see how other institutions are navigating their evaluations? Whether you're just getting started or exploring what's possible, our team is here to share real-world examples, success stories, and practical insights to help guide your next step.