In Banking, Financial Services and Insurance industry, technology vendor selection is very crucial and critical for business success, as there are many technology companies to choose from, just as in any other market.

Here are some “not-to-overlook” aspects to look for in the selection of a BFSI technology vendor.

Quality focused institution: The proposed BFSI technology should be a quality technology vendor, certified by reputed international organizations. In addition, the vendor should have time tested quality best practices and standards and cutting across the organization, everyone should be familiar with these quality practices and standards.

One who is exclusively specializing in BFSI vertical: The proposed BFSI technology vendor should be a well known name in the BFSI vertical with proven capability. It would be ideal if this vendor specializes only in the BFSI vertical so that his time and efforts are not diverted in to other un-connected verticals.

One with strong domain knowledge and best market practices: The proposed BFSI vendor should have strong domain knowledge, focusing on best market practices and constantly upgrading the skills of his employees in the chosen vertical. An ideal vendor should have done basic research in the BFSI vertical and created totally in-house resources for the domain practice. Additional factor to look in for in this BFSI vendor is the number of specialists with banking, financial services and insurance background and who have proved themselves practically in these areas.

One who has both product and service offerings: The proposed BFSI vendor should not be a pure play vendor either in the product or service offering. He should be able to offer in house developed products or customized service offerings. Only then the vendor would be in a position to understand, appreciate and offer best solutions – either in the product or service offerings. Only he would be to analyze the customer requirements perfectly and recommend the best fit either in the form of product or service. However, there are very few players in the market with both product and service to offer and leaving the decision making to the customer rather than thrusting the product or services on him.

Extensive tools and research: The proposed BFSI vendor should have extensive tools and research to his credit. This vendor should be in possession of repository of accelerators and in-house assets and frame works to aid the BFSI industry in the acceleration of development and testing lifecycles. He should be in a position to provide right technology tool.

Look into their existing clients list: “Show me your list of customers and I will tell you the level of your capability” applies very well to BFSI technology vendors too. Your ideal BFSI technology vendor should have diversified clients’ base and wider geographic coverage. The market leaders in the BFSI industry should be the existing customers of the proposed technology vendor. In addition, the length of their relationships and extent of offerings are also important in the selection process to look at.

Other critical aspects:

- One who can offer variety of business options

- One who has perfect business technology fit and alignment

- One who can provide faster time to market

- One who can bring the best integration capability to the table

- One who constantly innovates and invests in technology

- One who can provide competitive and cost advantage

In other words, go for one who is not a scale player (in every vertical) but who is a skill player in BFSI vertical alone. This vendor should be a proven ‘financial technology’ vendor.

The bottom line: Find a financial technology vendor who will give you what you need to succeed.