Locked In or Moving Forward: Rethinking Core Renewals with Guest Rich Carty

Wrestling Payments Podcast: Season 3 - Episode 26

Episode Summary

In this episode of Wrestling Payments, host Joe Casali sits down with Rich Carty from Remedy to dig into the realities of core technology contracts in banking and payments. Rich shares how financial institutions weigh tough choices when locked into long-term vendor agreements and why early planning is critical. He explains how most banks only revisit core contracts every few years, often finding themselves committed to outdated solutions for longer than they expect.

Rich points out that new technology and artificial intelligence are top of mind for many leaders. He sees demand for AI solutions rising fast, but notes that organizations remain cautious, balancing the urge to innovate with the need to avoid early missteps. Rich encourages institutions to seek advice, gather input from all departments, and focus on due diligence before making changes.

Throughout the conversation, Rich uses real stories to show the value of reviewing contracts and staying proactive. He highlights how the right approach can free up resources, improve vendor relationships, and help organizations adapt as the payments industry evolves.

Guest-at-a-glance

💡 Name: Rich Carty
💡 What he does: Vice President, Business Development
💡 Company: Remedy
💡 Noteworthy: Rich helps banks and credit unions review, negotiate, and optimize technology vendor contracts, with a focus on core systems, renewals, and technology transitions.
💡 Where to find him: https://www.linkedin.com/in/rich-carty-24918918

Key Insights

Start Contract Planning Three Years Ahead

Long-term vendor contracts shape how banks operate, often locking in core systems for up to a decade. Early planning is the best way to avoid getting stuck with outdated technology or unfavorable terms.

Financial institutions that want options—like switching vendors or just negotiating a better deal—need to start the process two to three years before their current contract expires. This timeline accounts for vendor schedules, internal reviews, and the complexity of core system transitions.

By moving early, organizations protect themselves from last-minute decisions and keep leverage at the table. The approach also gives teams time to gather input across departments and align technology with business goals. In a fast-moving payments landscape, a proactive timeline is the difference between staying ahead and falling behind.

AI and New Tech Drive Urgency, but Caution Matters

Artificial intelligence and emerging technology now dominate conversations in banking and payments. Institutions feel the pressure to keep up with peers but also recognize the risks of moving too fast.

Most leaders want to understand what’s possible without becoming early adopters who test unproven features or face integration headaches. The best approach is to keep an open mind, learn from peer experiences, and focus on how new tech fits real needs.

Not every innovation delivers immediate value or cost savings—some require a premium price and bring new challenges. Success comes from asking tough questions, gathering feedback from the whole organization, and resisting the urge to chase every trend for its own sake.

Due Diligence Uncovers Savings and Prevents Regret

A thorough review of technology contracts can reveal hidden costs and new opportunities. Even long-standing vendor relationships deserve a second look, as loyalty doesn’t always mean the best price or terms.

With due diligence, organizations spot gaps, compare options, and often negotiate better deals. This process can free up resources for growth, support new projects, or make room for future upgrades. Relying on familiarity or letting contracts auto-renew leads to missed savings and limits flexibility.

By treating every renewal or transition as a strategic decision, financial institutions protect their budgets and set themselves up for smarter, more agile operations.

Episode Highlights

Navigating Vendor Contracts and Lock-in Risks

Timestamp: ~[00:06:10]
Financial institutions often face long-term vendor contracts that can limit flexibility. Many contracts for core systems run five to ten years, leaving organizations unable to adapt if technology or business needs change during that period. This creates risk, especially when leadership changes and new teams inherit decisions they cannot alter for years. Strategic planning and careful negotiation at renewal time are essential to avoid feeling stuck with systems that no longer serve the organization’s needs.

“You might have a senior leader leaving a group, and they make this decision, and the new person comes in, and they can't do anything for eight, nine years because now it's taken care of on one hand. Yeah, I'm sure that's nice to not have to worry about it, but if you don't like how something's working or, you know, it's—you can't make that change until that expiration does come up.”

The True Cost of Conversions in Banking Technology

Timestamp: ~[00:08:36]
Switching core systems or major technology vendors is a massive undertaking for any bank or credit union. While many organizations express interest in exploring new solutions, very few actually make the leap due to the time and resources involved. The process includes lengthy planning, vendor demos, and a long implementation timeline. Most groups start the conversation two to three years in advance, but only a small percentage make a change after seeing the effort required. This reality highlights the importance of due diligence and understanding whether a full conversion or a targeted upgrade will bring the most value.

“I think the stat was that ICBA threw out in the banking community, 15 to 20% of groups want to actually look at doing a conversion and an RFP to see what's there. At the end of the day, I think only two to three percent actually make a change, right? So once you see what the undertaking is and the time, the commitment that's there, it's a lot.”

Peer Learning Matters When Evaluating New Tech

Timestamp: ~[00:15:20]
Banks and credit unions face a wave of new technology—AI, next-generation cores, and more. With rapid change in the industry, leaders must decide when to adopt and when to wait. Relying on local peer groups and industry connections offers practical insights into what works and what doesn’t. Hearing from others who have tested new solutions helps organizations weigh the risks and benefits before making big moves. This kind of peer learning often provides a clearer view than vendor promises or marketing materials.

“Using local resources and talking to your inner peer circles, that's going to be the best way to kind of see who's had the experience and see what they've heard, you know, to take on whether it is an AI-type model or a newer technology in that sense.”

War Stories: Savings Hiding in Plain Sight

Timestamp: ~[00:25:34]
A detailed review of vendor contracts can uncover major savings—even in long-standing relationships. One example from the episode describes a small bank with a decades-old core system and family ties to the vendor. By agreeing to a no-pressure contract review, the institution discovered significant hidden costs. The savings found allowed the bank to open a new branch and invest in growth. This story shows the value of periodic contract reviews and the potential benefits of challenging assumptions about existing agreements.
“We got into—we looked under the hood, and once we looked, there were a lot of dollars there, and they were blown away by it. They could not believe what that looked like. And so, with that, they were able to open a new branch with the extra dollars and set off on some other motions. So it, you know, again, that's rewarding for me as a consultant to say, we're able to find dollars, protect them within the writing.”

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