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Shifts in demographics, incomes and behaviour in addition to easily accessible information are empowering customers to demand greater autonomy, transparency and responsiveness from their banks. Customers worldwide are exercising their freedom of choice in search of better and custom-tailored products. The writing on the wall is pretty clear “keep your customers happy and you will survive”.

 

To be ahead in the race, banks need to become much more nimble and quickly meet marketplace threats and opportunities. Core systems need to enhance innovation while rigid processes must be transformed into horizontal, closely integrated core systems. Data needs to flow freely and processes must drive better decisions and faster responses.

Smarter core banking solutions provide a foundation of innovative and growth
A few smart and innovative ways can pave way for growth following steps could help banks drive innovation.

  • Streamlined Operating Environment
  • Standardized Business Processes
  • Automated Operating Environment
  • Adaptable Core Banking Systems
Successful core banking system transformations need to keep evolving and banks need to keep on building on agility and mobility. These methods at a later stage help in producing and sustaining higher revenues. Along the way, banks can gauge their progress towards practical, profitable core systems. By closing critical gaps, they can avoid efforts that don’t speed time-to-value and maximize ROI.

Three C’s of Core Banking


Customization: The new age is all about customization and personalization; it’s not limited to price attributes of a product or service offered. It also includes the manner in which services are delivered. Aspects such as balance and balance changes of different account names, loyalty point affiliations, transaction and information alerts, and marketing alerts form a part of customization.

 

Convenience: The entire dimension around convenience is changing from ‘Anytime’ and ‘Anywhere’ to ‘Anyhow’. New age banking would require banks to facilitate boutique like services, providing doorstep facilities to rural branches using field agents and partners to carry out disbursements, collections and deposit transactions. Another new age concept which is emerging to the fore is transferring information without rekeying. This will have significant effects towards maintaining information accuracy and productivity across all branches.

Concern: Maintaining quality of service and being recognizes is key to a bank as these factors earn customer loyalty. It is often seen that customers have complained of the bank not acting on any of their problems. This kind of a situation arises when the bank shows lack of concern. New age technology should enable banks to act immediately on a customer’s concern and create a bridge to directly communicate with the customers facing problems.
How will the transformed world be?
The transformed world would be a mere picture of the old banking structure and would require a totally different supporting infrastructure to address the evolving and changing customer dynamics. To sum it up new generation and transformed banks will move towards fluidity and integrated enterprise. This structure will require a total transformation of core banking capabilities that can integrate in the supply chain both products and services thus meeting evolved customer needs.
It would also require the core banking system’s CRM driven capabilities to work with business services that are offered by multiple internal and external product stakeholders offering financial services products.
In a nutshell the new Core Banking platform will depend heavily on business process management capabilities along with supply chain integration capabilities found in e-commerce platforms. It is also estimated that 90%of core banking transformation will be carried out by smaller banks and credit unions.
Posted on Jun 11, 2014

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