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Benefits Of Core Banking Solutions

What are the benefits of core banking solutions?

Custom core banking solutions are software programs that allow bank customers to carry transactions like deposits and withdrawals without needing a branch. Core banking software solutions are the backbone of customer service in the modern banking industry.

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. Today, customers know they will have access to their bank account(s) whether or not their closest bank is open.

What are core banking solutions?

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 transactions like deposits and withdrawals without needing a branch. Core banking software solutions are the backbone of customer service in the modern banking industry.

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, online payments, and move funds between accounts when they are sitting in the convenience of their homes. 

This new kind of customer convenience benefits the bank as well. When basic transactions happen online, customer representatives can spend time dealing with other things. 

Core banking software also helps the overall operation of a bank. It gives bank employees a standardized process for receiving customer information, posting transactions, and making changes to an account. 

Well-designed backend software will also help reduce costs by streamlining the operation. 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. 

One of the big advantages of a custom solution is scalability. 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 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. Custom software designers can learn from those attacks and make their products safer.

Key Features of a Custom Core Banking 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.

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. 

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. 

Mobile Access

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.

ATM Banking

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

Daily Transactions

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.

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. 

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Finding the Right Solution for Your Financial Institution

A well-shaped 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 too. The right banking software development partner can give you a custom banking solution that will exceed your expectations.

Author – William Dawsey, Global Director of Finance and Payment Systems at Chetu Inc.

John Raymond
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