The opinions expressed here are those of the authors. They do not necessarily reflect the views or positions of UK Finance or its members.

When four industry experts joined a UK Finance webinar last year, they were asked what criteria they would apply to such a decision. The questions they recommended asking still hold good, but some factors have become more pressing – AI, cybersecurity, open banking, regulatory innovation, and the government’s National Payments Vision (NPV), all key concerns of the forthcoming UK Finance Digital Innovation Summit (DIS ’25).

The nine recommendations

Know your own firm before you start choosing. How would you characterise your own organisation? Consider factors like age, size, geography, people, and industry domain. List the needs you want to solve and the resources available. You can then embark on a targeted search for the right software and supplier.

Investigate the supplier’s stability. Are they financially and operationally resilient, in their software products and their organisation as a whole? They should not be vulnerable to market changes, hostile takeovers, or a staff exodus, and must demonstrate commitment to their product. If they have a global network, this may spread their risk and support your own plans for expansion. We look for supply chain stability, so not just the immediate third party, but those firms in the chain that are relied on and therefore the need to assess wider stability.

Assess their approach to security. Given cybersecurity’s increasing prominence, do they use up-to-date checks and protections internally, and are these built into their software? It is crucial that they protect their clients against fraud and cyberattack, and – to quote the NPV – “ensure the security of the software ecosystem into the future, which may be more challenging than now.” In addition, look for official certifications as well e.g. ISO27001 & CE+, which are difficult to get, maintain and set a good standard.

Look into the future of the software. Does the provider make best use of new technologies and the opportunities they afford? They could already be using AI effectively and ethically – whether generative AI or neural networks – or making them integral to future development plans.

Interrogate the software’s capacity to connect. How smoothly will their software integrate with your current solutions, now and in the future as your business scales up? There should be APIs or other interfaces to connect securely and seamlessly with your own IT systems and infrastructure.

Consider the provider’s place in the regulatory environment. What certifications do they have? They should be compliant with the existing legislation that is shaping risk management and the financial industry, such as GDPR and the Economic Crime and Corporate Transparency Act 2023, as well as looking ahead to future regulations.

Explore the supplier’s approach to people. Would they see you as an important client, according you dedicated account management? Assess the quality of their customer support and customer relationships. If using their software will be a time commitment for your own people, the supplier must be able to manage onboarding and offer suitable education and in-person training.

Seek value for money. How much do they charge, and how do they structure their charges? You have to be confident in estimating the initial and probable future costs – and then ask whether the budget is available internally and if the investment represents sufficient cost benefit.

Discuss the provider’s standing with existing users. What is their reputation among your peers in the finance industry? As Confirmation’s Simon Edie said in the 2024 webinar, “one huge thing is just to speak with your peers who are already using that technology, because ultimately you’re not going to get a better, more objective response and case study than that”.