Core banking solutions have become necessary for any financial institution must utilize for streamlining their operations. It also eases banks and cooperative societies to constantly satisfy their customer’s needs such as profitability, compliance, bad loans, etc. This is the main reason why banks must opt for core banking solutions.
Core banking is a comprehensive banking solution that is now the main part of many businesses offering various banking services. It allows banks to provide a top-quality banking experience to the customers.
The capability to quickly adapt to exclusive changes allows banks to remain competitive in the market. Core banking solutions not only permit users to streamline their operations but also provide cutting-edge solutions to their customers.
What are core banking solutions?
Core banking solutions are the banks’ centralized systems that are responsible for assuring hassle-free workflow by automating the frontend and backend processes within a bank. The benefit of the core banking system allows customers to access all banking facilities from any of the bank branches across the country.
Features of core banking systems
Core banking branches are linked with each other, therefore the customers can receive the banking facility from any CBS branch, no matter where it is located. Features of core banking solutions are
- Opening new accounts
- Centralized working and management information system
- Customer Relationship Management activities
- Processing cash deposits and withdrawals
- Interest calculations
- Making and servicing loans
- Handling customers account
Benefits of Core Banking
With rapid enhancements in technology, banking transactions have become safe, faster, and more convenient. The main part about core banking systems is that one can perform cross-border money transfers at any time.
In addition to these, it has minimized the operational cost to a significant extent because when the transactions are performed by the customer, it removes manual use. Now let’s have a look at the benefits of core banking:
- Inspecting the status of balance, debit, and credit in the account.
- It offers digital money transfer solutions so that you can transfer money anywhere and at any time.
- Depositing cash into the account.
- Enhanced quality of service provided to customers.
- It simplifies, standardizes, and automates the process of transactions.
- Core banking solutions improve operational efficiency and minimize the cost of operations.
- It eases customer service
- Maintains transparency and control. With easy transactions and transparent banking services, banks are capable to retain customers and attract potential customers.
- Users can transfer money from their account to another account without any hassle.
- Assist in reducing thefts and frauds with real-time tracking facilities.
- It also supports various currency operations so it can facilitate customers with advanced digital payment solutions.
- Advanced core banking solutions come integrated with applications for business analytics.
Agency banking solutions
Agency banking solution comes with seamless integration with core banking solutions, legacy systems, and third-party providers. It also provides convenient self-service agent apps and flexible agent management abilities.
Agency banking solutions provide various facilities such as withdrawal of money, easy deposits, money transfers, and much more. It permits the banks to perform their operations in rural areas where every fintech business is not able to reach.
A strong banking solution assists banks to expand their services and optimizing their market share.
Whereas omnichannel banking is all about taking the banking experience far more than customers’ expectations. It permits clients to communicate and interact with their banks across all the channels and offer them similar services digitally or traditionally.
With the help of omnichannel issues can be resolved swiftly, and effectively. When customers enjoy both faster, and more customized services banks experience enhanced loyalty as happy customers are more likely to return.
Overcoming the challenges of core banking software execution
With the strong core banking solutions and agile software development it would be easy to overcome all the challenges:
Extensive Research
Gathering business requirements, analyzing customer base, researching the market so that you can have a full picture of the future system. When all that you have is an idea, rough draft, or a vision, we recommend performing the discovery phase, so that you don’t have to commence the development blindly as it may cause a ton of unproductive time and cost and other hurdles will obstruct the process of development.
Put Business value first
The system should be developed considering the business value it could deliver. Each important decision must be made depending on the technical as well as business features of the equation.
Get an appropriate tech partner
The software partner who will create core banking solutions must know how to balance between committing to requirements expressed by core stakeholders and adhering to the basics of building reliable and lasting solutions. Partner must be a good negotiator with strong product management and business analysis expertise.
Train Employee
No matter how best the core banking system is, it is essential to train employees, so they can understand how to work with the new software and don’t have to deal with frustration and other issues. Whenever you opt for a core banking solution train your employees for a week so that it will be easy for them to work.
Develop an exclusive system
Don’t aim to develop an exclusive version of an old core banking system but a brand new system that caters to the requirements of customers to assure competitiveness and market abilities.
Use advanced approach
Do not build an old system from scratch. Do the proper research and then build, utilize all the features, and at the final time test in the real environment.
Conclusion
With the technology transforming rapidly, legacy core banking systems have been continuously modified to deal with the changing landscape and this has led to the systems being more complicated to manage. The core banking systems always stay loyal towards their customers and its advantages are limitless.
A core banking system designed and developed digitally can make a difference between success and failure. Banks will be able to successfully fulfill the increasing demands of customers with the help of the latest systems and they will operate effectively and efficiently.
