“When it comes to core conversions, some are bad—and the rest are even worse,” said Emily Mays, Chief Administrative Officer at Community Spirit Bank. Her perspective is echoed across the industry, where core conversions continue to be one of the most stressful and consequential undertakings a bank can face. The pressure of long-term vendor contracts, the complexity of implementation, and the potential disruption to daily operations make these initiatives fraught with risk. Yet, for banks determined to modernize and remain competitive, core conversion is a must. When approached strategically, it becomes a catalyst for operational transformation and customer-centric innovation.
Planning with Precision: Laying the Groundwork for Core Conversion
Prioritizing Customer Needs Over Technology Trends
Core conversion should not begin with technology but with a clear understanding of customer needs and institutional goals. Veteran technology consultant Bennett Quillen emphasizes that the success of such projects relies 90% on understanding and addressing customer pain points and only 10% on technology. This sentiment is echoed by industry analysts and fintech thought leaders, including those from the podcast Fintech Insider, who advocate for vendor partnerships that align with a bank’s unique mission and customer base.
A needs assessment should drive every step of the process, beginning with how the core system must support client-facing functions, internal operations, and future growth. Rather than chasing trends in bank technology, institutions should evaluate how each feature contributes to long-term value and competitive differentiation.
Structured Execution with Leadership Involvement
A critical factor in the success of any core conversion is executive involvement from the outset. According to Quillen, this includes breaking down the project into manageable stages, such as five- to ten-day work units, and setting clear governance with a limited number of project teams, each led by subject-matter experts from relevant lines of business rather than IT alone.
Leadership must monitor progress closely, hold vendors accountable, and facilitate regular touchpoints. Weekly status meetings allow banks to stay agile and respond to emerging issues without veering off course. This level of structured oversight ensures alignment across departments and helps avoid delays and resource overruns.
Importantly, institutions must allow sufficient time for thorough testing, employee training, and disruption planning. Barb McLean, Head of Technology Operations and Implementation at Coastal Community Bank, advises against rushing implementation timelines. “Don’t jump into tech solutions,” she cautions. “Have a long-term strategic plan and stick to it… Test and learn as your process evolves.”
Navigating Risk: Building Resilience into the Process
Business Continuity Planning
Core conversions inherently introduce operational risk. System downtime, data migration challenges, and customer service gaps are all potential outcomes if continuity planning is insufficient. Every bank should designate a business continuity team empowered to mitigate disruption and ensure seamless service delivery.
One of the most overlooked missteps is attempting to implement other significant changes simultaneously. Layering complexity only heightens the risk of failure. Instead, the focus should be on minimizing variables, ensuring employees are well-prepared for the new system, and keeping clients informed well in advance of changes.
Choosing the Right Data Migration Path
Safe and efficient data migration is another core element of risk management. Banks typically choose from three main strategies: tranching, co-existence, and parallel-run. Tranching divides the migration into logical units such as by product type or business line. Co-existence allows legacy and new systems to run in tandem during transition. Parallel-run keeps both systems live, using the legacy system as a safety net while validating the new one.
Each strategy must be evaluated in the context of operational complexity, staffing capacity, and risk tolerance. The right path is the one that supports business continuity without overwhelming internal teams or creating friction for customers.
Driving Adoption: Preparing People and Culture
Early and Inclusive Stakeholder Engagement
Technology is only one piece of a successful core conversion. Ultimately, people and culture determine whether the change will take hold. This begins with early involvement of stakeholders across the organization. For example, Community Spirit Bank engaged a cross-functional team in evaluating core providers, with everyone from department heads to branch managers participating in demonstrations and providing input.
Similarly, VISIONBank of North Dakota achieved success by dividing their project into two well-defined phases: converting to the new system and diverting from the old one. They invested in preparing employees not only technically but emotionally for the transition.
Sustaining Momentum Post-Launch
Post-conversion challenges are real and must be anticipated. These can include tension with fintech partners, overreliance on a single vendor, customer dissatisfaction, and employee disengagement. According to a 2024 article from Independent Banker, leaders should seek peer guidance from institutions that have completed core conversions and ensure continued employee feedback loops.
The Independent Community Bankers of America (ICBA) found that 42% of banks not participating in vendor user groups were more likely to make uninformed decisions. Participation in these forums not only provides insight into best practices but also strengthens negotiating leverage and vendor relationships.
From Disruption to Differentiation
While core conversions remain complex, they also represent a rare opportunity to realign operations, technology, and strategy. Community Spirit Bank’s journey stands as a case in point: their success came from setting realistic expectations, centering the customer, and investing heavily in internal alignment. Over 160 meetings were held, and leadership found creative ways to maintain morale, including providing meals during critical weeks.
Banks that approach core conversion with strategic intent and disciplined execution stand to gain not just better technology, but a stronger foundation for sustainable growth. At Hartman Executive Advisors, we work alongside financial institutions to guide every phase of the journey—from assessment to implementation and long-term optimization.
To learn how your institution can turn core conversion into a competitive advantage, contact Hartman Executive Advisors for a complimentary consultation.
