The global financial services industry is currently experiencing a paradigm shift of unprecedented proportions. The push toward technological innovation, inter-organizational collaboration, and customer convenience is redefining the ways banks and other financial institutions are expected to operate. This shift is driven by an influx of younger, more digital-savvy customers who expect perennially accessible, engaging, and innovative services. At the same time, emerging technologies and business models are enlarging the scope of ways banks can serve contemporary clients.
Taken together, these factors are rapidly redefining modern banking customers’ expectations. From financial services and the products to the services banks offer in return. If they wish to flourish in this changing industry, traditional banks must transform their core systems and business strategies. They should enhance their service and create highly memorable, value-adding customer experiences.
Adopting a modern core banking software is arguably the most important step banks must take. They need to adapt to these changes and rise to the major challenges they pose. The right digital core banking system can set your bank up for success in the following key ways:
Expedited Rollout of Products and Services
In today’s fast-paced, hypercompetitive business landscape, banks need to not only develop attractive offerings. They also need to bring these to market at unprecedented speeds. Luckily, modern core banking solutions come programmed with a variety of capabilities. These can help financial institutions create and sell innovative products and services in a matter of days.
Some of these crucial functions improve centralized product management, enable end-to-end servicing, create sophisticated pricing and billing mechanisms, and offer superior parameterization. Inbuilt localization features also help ensure that banking products meet with customers’ regional requirements whatever their jurisdiction. By utilizing this technology, banks can readily address customer demands for a more varied array of cutting-edge banking products.
Customer-Centric Banking Experiences
Fast, frictionless, omnichannel service is the name of the game when it comes to modern banking. Customers today want the option of communicating and transacting with their bank anywhere, anytime, through a variety of digital channels. These demands, moreover, are not just about convenience.
Modern banking clients are also showing that they value personalized customer engagement and support more than ever before. Above all, they desire to see their banks as long-term financial partners that can and will support them at key life moments in all the ways they need.
Fortunately, many modern core banking platforms have been designed specifically in the interest of improving banks’ operational efficiency and agility. Cloud-based solutions give banks a readily accessible, complete store of data, enabling more intelligent business decision-making and calculated risk management. Transaction processing, customer onboarding, and other fundamental processes can also be accelerated. This is by leveraging the system’s array of intelligence tools and automation features.
Bank employees will thus have the freedom to concentrate on more challenging, value-adding work. This is by automating day-to-day processes and reducing the amount of time and resources spent on manual tasks. This can include performing high-level predictive analytics, developing innovative new products and services, or providing personalized support for customers with complex concerns.
Greater Connectivity and Integration
Instead of engaging with service providers in isolation, modern consumers prefer to transact with multiple businesses within large, highly interconnected digital ecosystems. They are more likely, for instance, to patronize online merchants that allow them to pay for purchases. This is through channels that they already use, such as digital wallets or direct bank deposits. More and more banks are also partnering with fintech organizations and other digital firms to co-build fresh new offerings.
Banks should seek to establish strong connections and partnerships with third-party services providers. This will boost overall client satisfaction and drive customer retention. These relationships can also help open up new value chains and customer touchpoints that might not have been accessible to the institution previously.
To improve their connectivity and encourage collaboration, banks need core banking platforms that support the secure, efficient, and transparent management of customer data and APIs. These platforms also need to incorporate global standards and protocols. It will enable banks to integrate swiftly and securely with partner firms’ own systems and networks.
Scalable, Agile Operations
Banks today are expected to operate at unprecedentedly high levels of efficiency with little to no downtime. This will serve millions of customers daily across multiple jurisdictions. Thus, it’s in their best interest to invest in core banking platforms. Those that will enable them to scale their operations efficiently and at a minimal cost. An ideal core banking system will utilize multiple operational and multi-tenant models to better align with regional regulations, market demands, and customer needs. It’s likewise essential for a core banking platform to support consistently superior business performance.
Superior Intelligence Capabilities
The ability to build and access a complete, accurate store of data is crucial for today’s banks. The information that they collect gives them critical insight into customer preferences and behavior, informs them of appropriate business predictions and decisions, and helps them exploit competitive advantages.
A core banking platform outfitted with machine learning and artificial intelligence features can help elevate a bank’s data-gathering processes significantly. These systems are built to drive the generation of useful business insights at a greater scale than was previously possible, giving banks ample opportunities to improve their user engagement and value.
For many banks, their choice of core banking platform will make or break their ability to keep up with the demands of the current business landscape. Modern solutions with optimized capabilities are key for banks looking to overcome emerging challenges and secure their place in the banking industry of the future.
Aside from being a businessman, Josh Austria has been working in PR and media industry for more more than a decade. From his years of experience as the Marketing and Advertising Head of Village Pipol Magazine, he has built strong relationships with creative people, brands, and organizations.