Core Banking Solution (CBS) promises a transformative leap for banks. It ensures banking functions are fully digital and compliant with modern banking standards.
Challenges in CBS Implementation
While modern core banking marked the dawn of a new era in banking excellence, the implementation and integration processes come with their own set of challenges (discussed below).
Migrating from Legacy Systems
Transitioning from legacy to modern core banking platforms is a complex task. The process of transferring customer data, transaction history, and other data without disruption requires meticulous planning and flawless execution. Risk factors such as data loss, system downtime, and inconsistent mapping of data during migration need to be dealt with carefully.
Optimizing Tech Infrastructure
Optimizing hardware and software resources is crucial for operational efficiency. If tech infrastructure is not managed effectively, it impacts scalability, security, reliability, and business continuity. Addressing these concerns requires investment in the right technology and resources.
To stay compliant, banks need to adhere to central bank regulations on transaction security, data security, and privacy, among others. Core banking systems must have integrated compliance features that can adapt to evolving standards and regulations for robust security and fraud detection.
Tech integration involves connecting various components, modules, and external systems with the banking infrastructure. Different technologies, platforms, and data formats can make smooth communication difficult. The right tech expertise is required to ensure seamless cooperation, efficiency, and a user-friendly experience.
Training & Change Management
Educating staff and customers about new technology, processes, and features plays an important role in successful next-gen CBS deployment. Effective employee training and transition management are imperative for operational efficiency and customer satisfaction.
Cost & ROI
Managing upfront expenses, ongoing costs (maintenance and training), and, most importantly, quantifying intangible gains such as improved efficiency and customer satisfaction are huge challenges. Banks require precise cost analysis, accurate ROI projections, and a clear grasp of how the core banking solution drives long-term business growth and profitability, to tackle these issues.
For this, banks must partner with the right core banking solution provider.
How to Choose the Right Core Banking Solution Provider?
Look for the following features and functionalities while choosing a core banking solution provider.
Real-time Transaction Processing & Data Availability
Ensure your core banking solution provider supports real-time transaction processing for the swift execution of services such as deposits, withdrawals, transfers, and payments. Real-time processing not only elevates customer experience but also enables timely decision-making for both customers and bank staff.
Multi-channel Integration (Net Banking, Mobile banking, ATM)
Modern core banking solutions must offer multi-channel integration, which allows customers to access banking services through various platforms such as online banking, mobile apps, ATMs, and more. The feature provides customers with the flexibility to choose their preferred channels for transactions, inquiries, and interactions, thus enhancing convenience and accessibility.
Cross-functional Capabilities (Accounting, CRM, Risk Management)
Cross-functional capabilities go beyond basic account management. It integrates various modules that include accounting, customer relationship management (CRM), and risk management into the core banking system. Integration enables banks to streamline operations, maintain accurate financial records, provide personalized customer experiences, and manage risks associated with financial transactions.
Customization and Scalability
Customization functionalities in CBS empower banks to tailor systems to specific needs and workflows. Core banking solutions should be scalable, considering the bank’s growth and increasing transaction volumes, without compromising performance.
Data Security & Privacy
Data security and privacy are the most critical aspects of core banking. Ensure your CBS is equipped with robust security features that include encryption, access controls, authentication mechanisms, and compliance with industry regulations. They protect sensitive customer data and ensure privacy which is indispensable to build trust and maintain the integrity of the banking system.
Modernizing core banking systems with the right solution provider is key for banks to unlock success in the digital era. Partner with Turing Core Banking Solution from M2P to roll out customer-centric banking services in the most efficient way.
Turing Core Banking Solution
Turing is a cutting-edge Core Banking Solution that deploys a state-of-the-art tech stack and micro-services architecture with licensed and open-source platform compatibility. Its low code development capability and API-first, cloud-agnostic approach positions Turing as a modern, future-ready core banking solution.
Banks can launch new products with minimum effort by leveraging pre-built modules and components, allowing them to stay ahead of the competition.
- Speed of innovation (using AI and ML)
- Flexibility (low code capabilities)
- Agility (hyper-personalized products)
- Open-source Platform Compatibility
- Faster Go-To-Market Product
- Highly intuitive CRM module
- Pre-integrated with Fraud Risk Management (FRM) engine
Want to know more about implementing the Turing Core Banking Solution?
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