20 Questions for Vendor References

by Jimmy Sawyers

When conducting site visits or checking vendor references, discuss the following with the key people at the financial institution reference:

1. What due diligence did you perform to select this vendor?
2. What other vendors did you review?
3. If you had to make the decision all over again, would it be the same? If not, why?
4. Do you find the vendor flexible to the financial institution's needs?
5. How well does this vendor interface to third-parties?
6. Please tell us about the support you get from the vendor?
7. Phone calls returned within _____________ (minutes, hours)?
8. Are support people knowledgeable?
9. What do you like least about this vendor/system?
10. What do you like most about this vendor/system?
11. Tell us about the user group. How often do you meet? What is the forum?
12. Please tell us what the system has done to make the financial institution: 1. More attractive to customers? 2. More profitable? 3. More efficient?
13. If you had to assign a letter grade (A-F) to this vendor, what would it be?
14. Using human terms, where would you place this system in its life cycle (e.g., infant, teenager, middle-aged, elderly, etc.)?
15. When your contract term is up, will you look at other vendors?
16. Tell us about your conversion. Was it painful, smooth, uneventful?
17. How are your response times at the branches (data communications, CPU speed)?
18. Do you believe the vendor is financially stable?
19. Have you seen any disturbing trends that we should note?
20. How is the system delivered across your network (workstation requirements, any noted glitches, desktop issues)?

Installments will include:

1. System Selection: Strategies for Success
2. The Anatomy of a System Selection
3. 20 Questions for Vendor References
4. 20 Rules of Vendor Negotiations
5. The Outsourcing versus In-House Debate Settled Once and For All

First published on BankersOnline.com 6/10/02