Blog Post
RFP Template: What to Ask Your Reconciliation Software Vendor
Issuing a Request for Proposal (RFP) for new reconciliation software is a high-stakes moment. Ask the wrong questions, and you end up with "vaporware"—solutions that look great in a demo but fail in production. Ask the right questions, and you secure a partner that scales with you for the next decade. Based on our experience helping banks navigate this process, we’ve compiled the definitive list of technical, functional, and security questions you must ask.
Category 1: Data Ingestion & Transformation
Most reconciliation projects fail because getting data into the system is too hard.
| Question | Why it Matters |
|---|---|
| "Do you support native parsing of ISO 20022 XML (camt.053, pacs.008) and SWIFT MT (940/950) files?" | Ensures readiness for global messaging standards. See our ISO 20022 guide. |
| "Can your system ingest unstructured data (PDFs, text logs) without custom code?" | Critical for handling legacy ATM logs or invoice scans. |
| "Is data normalized into a common internal schema upon ingestion?" | Prevents the need for complex field mapping during the matching phase. |
Category 2: Matching Logic & Rules
You need flexibility, not hard-coded logic.
- "Does your rules engine support 'One-to-Many' and 'Many-to-Many' matching?" (Essential for bundled payments).
- "Can business users create and test new rules without IT support (No-Code)?" (Reduces operational bottlenecks).
- "Do you offer fuzzy matching logic for text fields (e.g., Levenshtein distance)?" (Critical for handling typos in reference fields).
Category 3: Performance & Scalability
Don't just ask "Is it fast?" Ask for metrics.
- "What is the maximum throughput (transactions per second) for matching?"
- "How does the system handle peak volumes (e.g., End-of-Month)? Does it auto-scale?" (Vital for cloud vs legacy comparison).
- "What is your Guaranteed Uptime SLA, and what are the penalties for breaching it?"
Category 4: Security & Compliance
Non-negotiable for banking institutions.
| Question | Required Standard |
|---|---|
| "Are you SOC 2 Type II or ISO 27001 certified?" | Yes (Must provide recent audit report). |
| "Is data encrypted at rest and in transit?" | AES-256 and TLS 1.2+. |
| "Do you support Single Sign-On (SSO) and Multi-Factor Authentication (MFA)?" | Yes (Integration with Azure AD / Okta). |
Conclusion: The Proof of Concept (POC)
An RFP is just a document. The real test is a Proof of Concept. Always ask vendors: "Will you commit to a 2-week POC using our anonymized data to prove these capabilities?" If they hesitate, walk away. Platforms confident in their tech, like Reconwizz, will always say yes.