Core banking solutions are simplifying the banking experience of customers by allowing them to perform different banking activities from wherever they are. This is a centralized banking system that allows banks to enable growth by improving the operations and reducing costs.
With the core banking facility, many banking activities have been automated which used to be done by humans earlier. It has enabled the banks to offer the most common transactions like account opening, loan processing and more while eliminating the need of visiting the bank branches.
The core banking system is a software that is used to support the day to day activities of a bank. Let’s check out some of the advantages that core banking solutions have brought to the banks throughout the world.
Improved Employee Efficiency
In traditional methods, all the banking activities were done manually. Not only did it use to take colossal time of the employees, but also had the problem of unavoidable human errors.
Core banking solutions are a great introduction in this field as they help to make the banking processes efficient by automating multiple banking processes, reducing manual work and raising employee efficiency significantly.
This new system has enabled the banks to achieve higher employee performance by changing the operating models and simplifying the legacy approach of working. With this increased performance, banks are now more equipped to offer a range of new products to their customers while increasing the chances of acquiring new customers.
Improved Customer Relationship
Customer support and management is one of the key aspects of any banking system. If not addressed on time, even a small issue from the client can break the relationship.
The core banking system has enabled the banks to get immediate notification of any client query and resolve them faster. Not only has this enabled them to improve retention rate but also enhanced customer satisfaction by offering timely resolution to their problems.
Core banking solutions allow customers to enjoy the benefits of location independent banking. They can perform any banking activity without having to visit a bank branch and avail the banking services whenever and wherever they want. Customers are happier as they can perform all the banking activities in less time and as per their convenience.
The adoption of core banking solutions has reduced the operational and support expenses of the banks to a large extent. With the ability to offer services through multiple channels like internet banking and mobile banking, customers now don’t need to visit the bank branches. This has enabled the banks to save big on infrastructural and operational costs.
This decreased footfall in the branches also allows the banks to handle a large number of customers with ease. Operational effectiveness in terms of faster processing of transactions and loan processing has also resulted in a reduction in operational expenses. Also, the automation of services has enabled the banks to serve their customers better and have a positive relationship with them.
Improved Decision Making
The introduction of automation in banking has made accessing and managing the data really simple. With the centralized database, banks now can collect all the necessary data quickly. This gives the banks immediate access to analytics.
Core banking solutions generally have business analytics integrated into them. So, the data collected in the backend can be easily accessed and used to get valuable insights on time.
Cut Down on Maintenance Cost
Maintaining legacy systems incur a lot of expenses. With core banking solutions, banks can move to a shared services platform and combine multiple applications that otherwise needed huge cost to maintain separately. This enables the banks to enhance the performance of the backend system while reducing the cost of maintaining a legacy system.
With the availability of centralized printing and backup systems, there is no need to maintain them in all the branches. This helps to minimize the cost to a large extent.
Security in banking is of top-most priority. Any compromise on customer data or loss of information may incur a huge penalty on the banks. Core banking solutions are highly secure in nature, which enables banks to reduce any chances of legal penalty.
Core banking has enabled the banks to offer an easy and transparent banking experience to its customers. The core banking solutions have made the banking system smarter and more easily accessible for the customers. Not only has it helped the banks to reduce their operational cost significantly, but also helped them offer a superior banking experience to the customers by automating a lot of processes.
The core banking system is constantly evolving. It may have come a long way; but with the advancement in technology, we can expect it to make the banking system more and more convenient while offering a variety of new features to the customers.