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What are the benefits of CORE banking solutions?

By: William Dawsey

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Mobile technology has changed the way that people work with their finances. Exchanging cash and writing checks have transitioned into online payments and contactless checkouts. These changes have also impacted what customers expect from the banking industry. Today, consumers assume they will have access to their bank accounts whether or not their closest branch is open.

What are Core Banking Solutions?

While tellers and account managers may be the face of a bank branch, the most important work of the bank is done behind the scenes. Banks must process large amounts of customer account information efficiently and accurately. For this to be done throughout an organization, it requires powerful backend resources that can interact with several banking tools.

"CORE" is an acronym meaning Centralized Online Real-time Exchange. Custom core banking solutions are software programs that allow bank customers to carry out traditional transactions like deposits and withdrawals without needing to find an open branch. They can access their funds through ATMs, an online website, a mobile device, or any bank branch in the system. Core banking software solutions are the backbone of customer service in the modern banking industry.

What are the Benefits of Core Banking Solutions?

Incorporating core banking software into your financial organization benefits both the company and the consumer. Customers love the ability to make deposits remotely, make online payments, and move funds between accounts when they are sitting in the convenience of their homes. It is important to recognize that a bank that cannot meet these customer expectations will have a difficult time growing its market share.

This new kind of customer convenience benefits the bank as well. When basic transactions happen online, customer representatives can spend time dealing with more complicated needs. Customers are simply in a better mood when they do not have to wait in long lines for service.

Core banking software also helps the overall operation of a bank. It gives all bank employees a standardized process for receiving customer information, posting transactions, and making changes to an account. This will minimize the cost and inconvenience of errors. The reputation of a bank depends on its accuracy.

Well-designed backend software will also help reduce costs by streamlining the operation. When you are ready to release a new financial product, it can be done across the entire organization at once. Reports to comply with oversight regulations become much simpler when all of the information is quickly accessible.

Custom Core Banking Solutions: Your Best Option

Banking organizations come with many different needs and in different sizes. The banking solutions that work for a large, national banking company will not be appropriate for a local financial institution with few branches. When you partner with an experienced software company, you can find the custom solution you need to supply your customers with the banking services they require.

One of the big advantages of a custom solution is scalability. Your software partner can develop programs that will meet your current needs and anticipate where you plan to go in the next few years. With the right basic infrastructure, your core banking solution can easily adapt to new products and services as you grow.

Core banking software programs only work if all the pieces fit together properly. Custom-designed banking software allows for the full integration of your banking system. This means that it can process information from your ATMs just as easily as it does a bank employee's desktop computer or a customer's mobile app.

In banking, the safety of customer data is critical. Any kind of data breach or online attack can be devastating to your organization. One of the advantages of a custom solution is the ability to add extra levels of security. Since it opens more possibilities of reward, hackers are more likely to look for the vulnerabilities of general banking software packages. Custom software designers can learn from those attacks and make their products safer.

Key Features of a Custom Banking Software Solution

Your banking software development partner should be well aware of the basic needs of the banking industry. Although there are many ways to customize your solution, there are some standard features you must consider.

Onboarding and Account Information Maintenance

Your relationship with a new customer begins with setting up an account. The right banking software will make this process simple and fast. Once you are through the initial setup, your banking solution can allow customers to create and maintain multiple types of accounts without stepping into a branch.

Onboarding and Account Information Maintenance

Customer Communication

If there is ever an issue with a customer's account, he or she will want to know right away. Your banking solution should be able to reach customers through SMS messaging or automatic emails. This communication will make it just as easy to send a message to every customer as it is to send a single message to an individual.

Customer Communication

Online Banking

With busy schedules, people do not always have time during the workweek to go to the bank. A well-designed website will allow for account access at the convenience of your customers. This is also a great space to share information about new products and services.

Online Banking

Mobile Access

A mobile app carries out many of the functions of a website, but it is specially designed for use on a mobile device. The best banking software development companies will know how to use all the features of the most common devices so that customers can take advantage of mobile deposits and other banking services through their smartphones.

Mobile Access

ATM Banking

Your ATMs must communicate information in real-time. This will prevent accidental overdrafts and account inconsistencies.

ATM Banking

Daily Transactions

Deposits and withdrawals are the basic transactions of the banking industry. Your customers need these to be handled seamlessly however they access your banking services. The right banking solution will give them the option of online payments, direct deposits, and automatic withdrawals.

Daily Transactions

Loan Interest and Payments

Once a loan is approved and distributed, much of the maintenance is a matter of calculations. Your banking software will handle the task of calculating interest, penalties, and determining the proper monthly payments.

Loan Interest and Payments

Finding the Right Solution for Your Financial Institution

A well-crafted software system will make a huge difference to your financial institution. Your customers will appreciate the user-friendly design and flexibility of the system. Your organization will enjoy the benefits that come with streamlined procedures and a centralized structure. The right banking software development partner can give you a custom banking solution that will exceed your expectations.

Disclaimer:

Chetu, Inc. does not affect the opinion of this article. Any mention of specific names for software, companies or individuals does not constitute an endorsement from either party unless otherwise specified. All case studies and blogs are written with the full cooperation, knowledge and participation of the individuals mentioned. This blog should not be construed as legal advice.

Chetu was incorporated in 2000 and is headquartered in Florida. We deliver World-Class Software Development Solutions serving entrepreneurs to Fortune 500 clients. Our services include process and systems design, package implementation, custom development, business intelligence and reporting, systems integration, as well as testing, maintenance and support. Chetu's expertise spans across the entire IT spectrum.

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