According to FIG partners, the volume of bank mergers increased by nearly 20 percent between 2013 and 2015. Deloitte reported that October 2016 was the busiest month ever for overall domestic mergers and acquisitions, adding that “acquiring technology assets has surged in importance as a top strategic driver of M&A.”
Many financial institutions are using data automation technology tools to reap the benefits of such expansion efforts. They can:
- Avoid conversion fees that can approach a million dollars
- Achieve an almost immediate return on investment (ROI)
- Reduce the migration project duration by as much as 75%
Time is money
The above numbers should get the attention of banking executives and their operations managers, but industry veterans know that getting the target bank’s customer accounts integrated and operational within the acquiring bank’s core system is critical. Depending on the size of the conversion, data entry software will require eight to 12 weeks for completion. Without the software, it can take core vendors six months or up to a full year to complete the migration timeline.
A tool, such as Nintex Foxtrot® RPA, doesn’t eliminate the process; it automates it. Data entry software works around the clock if need be, and it isn’t a complicated, “experts only” solution, which means it’s easy to implement and adopt by your conversion team and IT staff. Plus, the gateway technology works at the user interface level so it doesn’t have to be intricately and expensively tailored at the programming level, the core vendor’s realm of limited options and seemingly unlimited costs.
Data entry software offers speed in setup, execution and the elimination of extra steps, such as the post-migration data cleanup that is often necessary when a vendor begins converting data on the traditional programming level.
One of the biggest tasks in the banking world is a data migration after a merger or acquisition. There is always a risk-reward element to every major business shake-up. It is time for your bank to capitalize on the major growth opportunities that are mergers and acquisitions.
For more information, read our white paper, “4 Reasons why an automated employee is right for your financial institution.”