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Negotiating Core Vendor Pricing

Four vendors control 95% of the market for core, debit processing and digital banking services. It’s an oligopoly that processes billions of commodity-like transactions per day. Unlike other commodity-based oligopolies, vendors keep pricing opaque. That leads many FIs to overpay, and in fact, some pay up to three times more than others for essentially the same services. Vendor contracts typically come up for renewal once every five years. The negotiations...

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