Competition in the banking industry is very high due to the neo banks and challenger banks. Due to which traditional banks’ core banking platforms are struggling to keep up. Also, they don’t have enough flexibility to adapt to changing customer journeys & behaviour, closed ecosystems, vendor lock-in and excessive maintenance costs among other issues.
That is why the old banks need to replace their traditional core banking solution with a next-generation core banking platform that will give them the flexibility to fulfil the ever-changing customer needs. Furthermore, a core banking solution allows the banks to become an integral part of their customers’ lives by providing them with the best offering.
In this blog, we will discuss six important features of a core banking solution by using which traditional banks can attract more customers and increase their profitability.
6 Top features of a core banking solution
Core banking solution helps the banks to carry out basic functions that suit the banking needs and specifications. Core banking solution provides several features that automate the banking processes. Here are the features of a core banking solution that leads the bank towards digital transformation:
1. Real-time cheque processing
When it comes to the clearance of the bank cheques, it should not only be reliable and robust but also time-saving which is one of the major factors for countries having a large population. And, core banking solutions help the bank with the real-time processing of cheques.
Core banking solution will create a digital image of the cheque with a MICR band and send this image to the other bank for processing. This will eliminate the need for additional physical documentation. Due to the real-time processing of cheques, banks can allocate funds faster to the customers. Furthermore, the fraud detection process will get easier due to this.
2. Digital banking management
Nowadays, customers are using mobile banking solution and internet banking to deal with their banking transactions. Due to this, the banks need to make a secure payment structure. Here the core banking solutions can help the banks by making their system more secure and seamless.
Generally, digital banking management also includes digital onboarding services, virtual assistance, online documentation, and other potential incentives. This automation in customer onboarding will offer efficiency, speed and convenience to customers.
3. Banking Analytics
The term banking analytics refers to any technology that is used to gather, process and analyze both structured and unstructured data. The core banking solution also includes banking analytics that enables the user to identify the latest market trends. And by identifying these trends, firms can grow faster and make further plans.
Along with this, the banking analytics feature also helps the user to improve its sales and marketing strategies. Also, it provides the data to the users that enables them to target specific demographics. Moreover, this analytics feature of the core banking solution allows the user to identify and flag malicious activity or fraud.
4. Chatbot Integration
Banks can empower their customers with the most customised approach. For this, the banks have to provide 24*7 support to their customers to provide them with expert help when they need it. For this, banks can integrate advanced Chatbots.
Chatbots provide round the clock support so that clients can resolve their issue even after banking hours. Furthermore, chatbots will decrease the workload of banking staff by handling minor issues. Due to this, employees can only focus on the things that need the human approach. Apart from this, chatbots run around the hour, have always been respectful, and don’t get exhausted.
5. Loan Processing
Core banking solutions have automated loan processing by using the latest cloud and web technologies that are easy to implement. Moreover, core banking solutions can evaluate and identify loan applications that can meet the bank’s lending criteria, notify the borrowers, underwrite confidently, and fund the loan.
Also, the automation in loan processing improves the loan decisioning and applicant evaluation processing. Furthermore, the core banking solution eliminates repetitive manual steps. Apart from this, core banking solutions will digitise the loan reminders of the bank.
6. Customer Relationship Management
Customer Relationship Management helps the banks to identify potential customers. Also, it can keep track of the bank’s existing clientele and can use them to target the people with maximum clientage returns.
Apart from this, the core banking solution helps the admin to close their deals faster by facilitating quicker and more efficient responses to customer leads. Also, the core banking solutions will drastically increase the turnaround time for banks.
Core banking solutions will help the banks to overcome the challenges of changing IT infrastructure and obsolete systems and bring a reduction in application maintenance costs. This will increase the bank’s operational efficiency and bring the system standardization from the front office to the back office.
Given the high risk associated with core banking transformation, the banks need to have strong governance and change management structure in place that would smoothly manage every aspect of transformation from internal stakeholders to external partners.
And for this, the banks need to build a robust core banking solution. To make a profitable core banking solution, banks can hire a software development team or they can hire remote development team.
Hope you liked this blog. Feel free to reach us to know more about the core banking solution.
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading fintech solution providers USA, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.