The banking industry is becoming more competitive. As a result, next-generation banks that use core banking software are gaining market share by focusing on attractive value-chain niches, compelling incumbent banks to rethink their outdated systems.
Fortunately, there is plenty of core banking software available to assist institutions with swiftly and efficiently modernizing.
Core banking – what is it?
A back-end system that processes banking transactions throughout a bank’s multiple branches is known as core banking. Deposit, loan, and payments processing are all part of the system. In addition, floating new accounts, servicing loans, calculating interest, processing deposits, and transactions, and customer relationship management activities are all essential fundamental banking services.
Core banking systems are designed to give current and potential consumers more control over their account activity. Due to technological advancements, transactions have become safer, faster, and less demanding. Core banking systems have been a critical feature of banking in recent years because these transactions may be completed remotely from anywhere on the planet.
Core banking solutions may reduce operational costs significantly, resulting in more minor labor requirements for execution. It also allows customers to be more accountable. In addition, core banking systems are more user-friendly and efficient thanks to software application-based platforms. The advantages of core banking systems are numerous, including keeping up with a rapidly changing market, streamlining banking operations and making them more straightforward for consumers, and expanding a bank’s reach to remote locations.
Core banking solutions may reduce operational costs significantly, resulting in more minor labor requirements for execution.
New core banking software platforms are built on cloud and digital technologies and use open API-based architecture to better interface with various internal and external services and systems. Lower costs, faster time to market, and more superficial connection with multiple services that might improve client experiences are all advantages of new core banking systems.
How to find the best core banking solutions?
A company’s leading financial platform can make or kill it. Modern digital core banking platforms provide more services, flexibility, and opportunity than obsolete legacy systems. As a result, digital banks and fintech can use the current technology to improve cost-effectiveness and gain a competitive advantage.
To find the best core banking solution, you should consider the following selection criteria:
Future-proof microservice design
Microservice architecture is responsible for the capacity to roll out new functionalities quickly. As additional services, integrations, updates, and customizations can be added to the existing product; the technology becomes more flexible and safe. In addition, because organizations have immediate access to their technology, the microservice design empowers them to take innovation to new heights.
Time to market is short
Customer onboarding, account opening, bank card issuing, KYC, money movement tools, payments, currency conversion, and support are a few features that an excellent digital core banking provider will give. As a result, banks and fintechs may launch their solutions with preset functionality in a fraction of the time. It would take core banking developers to design in-house services using these capabilities.
The functionality can then be expanded to include new features to improve your clients’ banking experience. For example, adding more complex operations, more security measures, and a plethora of interfaces with banking, payment, and insurance providers may genuinely make your business stand out.
Open banking ready
Open API-based core banking solutions can easily be combined with third parties and other banks in the financial ecosystem to build new goods and services. For example, banking consumers benefit from loyalty, budgeting, and insurance products developed through partnerships and linked via APIs. Connections between services not only provide you new functionality, but they also open up new revenue sources and opportunities.
BOS provides clients with one-of-a-kind core banking solutions that result in a complete transformation of legacy banking functions. As a result, you won’t have to wait months to reach the market and miss out on potential clients.