Banks what we see now vs. what we saw five decades back were very different. People visiting the bank branch and waiting in long queues for simple transactions. Those were the days when doing bulky paperwork was a mandate. And with no data centralization, all transactions took over 24 hours to reflect. However, gradually banks started to move to CORE (Centralized Online Real-time Exchange) to manage financial transactions and operations faster, easier, and error free, giving rise to the modern practice of Core Banking. Core Banking is the next-gen digital banking suite that offers the entire range of banking services under one umbrella.
With the banking process going digital, frauds are on the rise, and a secured core banking solutions are the need of the hour. According to a 2019 survey by McKinsey in May 2019 on a group of 37 banking executives, 70 percent banks are evaluating their core banking platforms. The core banking solution offers a modern, protected technology architecture and an interactive user experience enabling the users to innovate more rapidly and operate more efficiently.
A core banking system is a secured browser-based multi-channel integrated banking solution for not just banks but for fintech organizations as well, enabling banking services for customers with different user profiles, efficiently and reliably. It adheres to latest technologies and creates a futuristic go-to-market strategy.
Core Banking System – A Mandate for Every Bank
Banks are increasing, so are their services. Today, Banking as a Service is growing immensely and transforming digitally providing a wide range of banking services, operated centrally through data centers, and broadening their reach to customers as well. A digital core banking system covers payments, information services, mobile banking and commerce, requests, transfers, and much more.
Here’s why banks need Core Banking Solutions -
A core banking solution provides a centralized payment platform integrated with a range of banking services executed digitally. Customers do not have to worry about transacting through a specific bank branch, while the bank maintains the portfolio at one central repository, thus minimizing human efforts and errors.
Secured Portal and Transactions
The solution facilitates swift data access with secured API payment methods. The integration provides secured multi-layer authentication for all transactions to avoid any deceits. It addresses key security concerns like secured authentication, multi-level authorization, data encryption for Data-in-Motion and Data-at-Rest, User Role based Access with 2FA, PII data privacy, and more. Simultaneously, it manages all sort of legal aspects and develops trust factor in customers.
A digital core banking system empowers customers to build customized products/services as per their need. Banks thus expedite to deliver the required services in a consistent manner, offering them a personalized experience. Moreover, it provides an opportunity for banks to come up with new services portfolio with addition of new features, leading to better brand capabilities and customer engagement.
Every core banking system has its own features and advantages. Digital core banking enables the customers to operate banking services including payments, transfers, ATM, SMS banking, net banking, mobile banking, service outlet, Kiosk, call center / IVRS, and a lot more through digital platforms. It also provides an opportunity to upgrade those services with various discounts and interest schemes.
Less Investment, More ROI
With above points, it is evident that core banking solutions reduce the overall banking, operational and well as staff expense and brings in more business with convenience banking to customers.
No Special Operational Training Required
A core banking solution is nothing but managing an application whether it is from bank’s perspective or customer’s. Operating this solution doesn’t require any special training and thus saves a lot of expense.
From the customer’s perspective too core banking solution is equally beneficial. Banks focus on customer needs and here’s how they can help their customers with the help of core banking system providers -
- Provide flexibility and scalability to key banking operations with centralization
- All banking services through one platform - Net Banking, Mobile Banking, SMS Banking, Secured Payment Gateways, PoS, and other third-party interface integration
- Anytime, anywhere, any device banking with online accessibility
- Offer convenience and fasten banking activities unlike conventional banking operations
- Accuracy in online transactions with no human errors
- Appropriate, timely response through online customer desks
- Secured transactions lead to trust in customers and strengthen customer relations
Core banking solutions can be implemented in all kinds of fintech institutions such as -
- Corporate Banks
- Central or Nationalized Banks
- Co-Operative Banks
- Payment Banks
- Small Finance Banks
- Regional Rural Banks
- Non-Banking Finance Corporations
- Micro Finance Institutions
- Insurance and Securities Firms
Deliver Digital Innovation with Core Banking
With a core banking system, customers remain connected with banks anytime, anywhere, and through any access channel or device. This offers great customer experience and helps banks generate new revenue streams.
Banking solutions have improved over the time with new services generating the need for core banking solutions through core banking system providers. In addition, with new and advanced technologies such as Blockchain, Internet of Things, Artificial Intelligence, Chatbots and so on, the core banking platform triggers greater automation, and business intelligence leading to better decision making and forecasting.
The COVID-19 pandemic has drifted nascent digital technologies to the forefront. And this is the time for banks to know the importance of a core banking solution, but how do they go about it? Panamax’s Core Banking System provides a seamless digital banking platform. It is a secured scalable, multi-channel integrated banking solution that enables digital banking efficiently and reliably, and at the same time offers customers to have complete control over their bank accounts.