CBS or Core Banking Solution refers to a consolidated system created by a bank that enables its customers to carry out their banking activities and operate their accounts regardless of the branch they are using. In layman’s terms, with core banking, you do not need to visit your branch to perform banking transactions. You can enjoy all the banking services from any bank branch which is on the CBS network, irrespective of the branch where you have your account. A core banking system, according to Gartner, is a “back-end” setup that generally includes credit and loan processing capabilities and deposits with interfaces to ledger systems and different reporting tools.

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Core banking on the cloud allows banks to provide new services with speed, automate workflows, enhance productiveness and offer savings. At present, only a few banks have made a shift in their core banking systems to cloud based platforms. Other banks that do not have core systems on the premises often outsource data via their core provider to private clouds. Cloud based core banking solutions allow banks to automate their operations, implement new services for customers, and enjoy efficiencies that can affect the bottom line.

How core banking cloud system benefits banks?

Cloud based core banking solutions are worthwhile for both customers and banks. How? Read on!

Benefits of cloud based core banking:

  • Efficiency in bank operations.
  • Automation in workflows.
  • Usage of advanced encryption modules protects the infrastructure from cyberattacks.
  • Access to banking services round the clock.
  • Lower operational costs for banks.
  • Boosts scalability & flexibility in the banks, rendering them able to respond to the constantly-evolving markets.
  • Allowing users to trade in diverse currencies right away.
  • Build stronger client relationships.
  • Minimization of errors & accuracy in transactions.
  • Helps in analyzing fluctuating customer demands.

At the moment, only a small percentage of banks have shifted their core banking setups to cloud based platforms. Banks that do not have on-premises core systems usually resort to outsourcing data to private clouds via their core provider. However, the realization to make a transition is growing, and IT leaders are as well endorsing and educating about cloud based CBS – a means which opens a new way of doing business.

 

 

Cloud based core banking solutions growth

The entry of cloud based banking spaces has made a significant impact on the growth of the financial sector. Companies are increasingly rushing to adopt these banking solutions, as they are the apparent drivers behind the industry’s growth. According to a Deloitte report, capital markets and banking leaders identify the cloud based core banking systems as more than just a technology. Instead, a destination for financial services firms and banks to store applications and data and access modern software applications through the internet.

Cloud core platforms facilitate a reduction in administrative outlays in the back and front office, as the cutting-edge technology allows more inclusive integrations with expert third-party services. Monolithic core banking platforms on the institution premises limit access to the data management platforms and the latest business process management tech, especially CRM tools and merchant collaboration software. Financial organizations that use cloud core banking systems do not need to depend on internal teams to spearhead multi-million dollar projects to generate custom in-house tech solutions for usual business management issues, as now they can network their systems with the external software systems and solutions.

The utilization of cloud based core banking systems has enabled financial institutions to scale up or down their efficiencies rapidly. The marketplace agility provides cloud centric enterprises serious cost benefits over other financial organizations. APIs allow these institutions to accomplish a level of scalability that will reduce costs further and help them become innovators.

Core banking on cloud – why choose BOS?

The scope for cloud core banking software to apply AI technology and automation to internal processes is getting noticed. So, are you ready to do this? With BOS, seamlessly integrate cloud core banking solutions with CBS platforms and scale in an agile manner!

The automated solutions delivered by BOS increase customer satisfaction and enhance quicker resolution times, strong digital communication streams, and easily accessible information.