Pub. 4 2013 Issue 3

www.wvbankers.org 26 West Virginia Banker Why do bankers fear core conversions? One factor is the fear of change itself – has the bank made the right decision in investing heavily in a technology platform that will be the backbone of all bank operations? A nother factor is the volume of work that goes into a core conversion proj- ect. Ensuring that every transaction, customer and report makes the transition from one data processor to another can be tricky, especially if changing the format of the database. And the final factor many bankers claim makes core conversions painful is the people side – getting staff trained on a new system and comfortable with using it to its maximum capabilities. The good news? While a core conversion will always be a large-scale project, there are distinct steps banks can take to ensure the conversion is as smooth as possible. From preparing the data to preparing the staff, a little bit of planning in advance goes a long way toward ensuring a success- ful transition. Prepare the Process Any successful conversion begins with a clear process detailing how the bank will manage the project. Banks and processors must ask a great deal of questions up front and prepare a clear blueprint of the con- version. Keep in mind that it is imperative for the bank’s management, at all levels, to participate in the planning and completion of all tasks on the project plan. Remember, too, that banks must plan out the conversion on paper before tackling the work itself. Set a schedule and stick to it, because the schedule drives cost, and stick- ing to it also improves decision making. In the words of author Steven Covey, be- ginning with “the end in mind” keeps the bank focused on the goals and end results, and helps guide the steps in between. In terms of whether to perform the conversion piecemeal or in its entirety, it’s generally best practice to take an all- at-once approach. This helps ensure the overall integrity of the bank’s everyday operations. The strongest core providers will convert everything as close to the way a bank is currently processed as possible, minimizing new products and services at the beginning of the conversion window and adding new options later after the dust has settled. Prepare the Tech Preparing the technology itself begins with the most critical step of all: ensuring the data is ready for the migration from one system to the next. Getting basic customer account information correct is critical to a successful conversion. Take the time to scrub and clean up data in the orig- David Hyberger is vice president of conversions for Computer Services, Inc. (CSI). During his more than 30-year career with CSI, David has been involved with numerous aspects of core conversion projects, including strategic planning, education services and onsite implementations. He currently oversees the implementation of new banks onto CSI’s NuPoint core bank processing system, providing leadership to ensure success- ful transitions for each conversion project. inal system as much as possible, so that the new system receives the most accurate information as possible. Also be aware of how reporting is com- pleted in the new system compared to the old. Compare reports and tests from both systems to ensure that the new core plat- form can produce the items and formats necessary to evaluate the bank’s data. Staff also must be prepared to quickly fix problems in the new system. In even the most seamless conversions, there are small issues that will pop up – a data field that doesn’t migrate correctly or an auxiliary integration that hangs up. By constantly testing and remaining primed to trou- bleshoot any issues that arise, banks are mentally prepared for the small hiccups that will inevitably occur. Prepare the People While preparing the process and prepar- ing the tech are critical, nothing is more important than preparing the people. Training and communication are vital to the successful conversion. Have end users practice using the new system before official rollout. End-user training on the new core system also is important to user adoption and the ultimate success of the project. Training should be more than a one-time orientation program. Ongoing webinars, eLearning classes, in-person training, phone support and “conversion schools” all can help bank staff prepare for and better utilize the new system. Banks also should communicate with customers any potential impact. If systems will be offline or unavailable for some reason, communicate that clearly and well beforehand to ensure that customers understand the changes that are coming. While a core conversion will always be a major undertaking, spending the time to properly prepare the process, the tech and the people will set a bank up for success. n Taking the Pain Out of Core Conversions By David Hyberger is vice president of conversions for Computer Services, Inc. (CSI)