Rebooting core banking systems requires more than just technology. Operating model changes must accompany technology upgrades. Bankers look for banking functions that reliably fit together and interact cohesively. They also appreciate platforms with natural hierarchy and straightforward language. Banks also want a flexible core platform that supports growth and innovation. Ideally, the system should have a modular architecture and allow for localized changes.
Scalability
Corebanking solutions systems must provide scalability to keep up
with customer expectations and business growth. Currently, many banks are
attempting to modernize their legacy systems by implementing new add-on modules
such as document imaging products and loan exception tracking tools. These
add-ons must be capable of working with the bank’s existing core system to
ensure seamless integration. A cloud-native core platform, like Beacon,
provides a flexible architecture that supports third-party APIs and accelerates
connections.
Older core systems were monolithic, relying on tightly
coupled underlying interdependent business modules like account management,
transaction processing, statements, and customer management. As a result, they
were often difficult to change and expensive for banks to upgrade. Moreover,
they were unable to handle large volumes of transactions quickly and reliably.
This is a major challenge for modernizing legacy cores. Rather than doing a
full migration, it may be better for financial institutions to hollow out their
existing core systems and migrate them step by step.
Reliability
Incorporating CBS into your bank’s operations offers several
benefits to both customers and the company. Customers benefit from the ability
to deposit checks remotely and move funds between accounts with greater ease,
while banks profit from less time spent on basic transactions. This enables
them to focus on more complex customer needs and expand their service reach to
remote areas. The reliable nature of core banking solutions also lowers
operational costs, especially compared to legacy systems. This is because they
automate a lot of processes and reduce the number of human resources required
to carry out tasks. They also enable real-time data processing, which reduces
the number of human errors and makes it easier to generate regulatory reports.
Most of these systems are designed to offer add-on
applications such as document imaging products and loan exception tracking
tools, which are often included in the overall contract with the core provider.
However, some institutions choose to go with separate third-party software
developers that offer more advanced features that aren’t included in the core
system.
Security
As your client-facing staff gains access to the information
that lives within your core platform, it becomes important that this data
remain secure. Flexible security features like field-level security can allow
your bank to control access and protect sensitive data. Many legacy systems
were designed with a complex programming language that is tightly integrated
with each other, limiting their flexibility and making it challenging for banks
to introduce new services. This type of system is difficult to update because
changes to one component can have wide-reaching implications throughout the
entire application.
New core banking solutions are designed to be more flexible
and easy to update, allowing you to adapt quickly as your business evolves.
These systems also use cloud technology to reduce infrastructure costs and
increase scalability and efficiency. They’re also able to resist cyberattacks
by using robust security protocols and encryption standards. Speridian
Technologies is the proud publisher of Beacon - Core Banking Solutions, a
highly scalable and reliable software for your bank’s operations.
Integration
A robust corporate bankingproduct enables
standardization and transparency across business bodies and bank branches. It
also ensures efficient and prompt customer service. Core banking systems are
also used to reduce the cost of transactions and increase productivity.
Core banking systems are a critical part of any financial
institution, providing a platform for online and ATM services, allowing banks
to offer chequing and savings accounts, term deposit and GIC processing, loans
and mortgages, credit facilities, investments management, accounting, and
integrated customer relationship management. They are also a central repository
of account and general ledger information, calculating interest earnings on
savings and investment products, settling escrow overages and shortages, and
updating interest rates tied to indexes.
A modernized core banking system will enable real-time
transaction processing, eliminating delays and improving overall efficiency.
This will allow your customers to complete simple transactions without having
to visit a branch, making the banking experience more convenient for everyone
involved.
Conclusion
Core banking solutions provide financial institutions with a
foundation for digital and data processing. They help them reduce operational
costs and boost customer satisfaction. A good core banking system allows for
round-the-clock services anywhere, anytime. It also gives customers convenience
by facilitating a hassle-free merging of self-service operations with back-office
processes.
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