Let’s face it. Financial institutions without modern core banking systems – if there exist any – are missing out on new possibilities. From higher loan yields to improved customer services, the digital transformation of banks is breathtaking.
Today, advanced fintech solutions are helping financial institutions improve their service delivery and optimize profits. However, this also means that competition is stiffer. It comes as no surprise that every major bank and financial institution is rushing to adopt a new core banking system.
But, how do you know which system will guarantee you the results you want for your bank? The market is flooded with all manner of banking systems. Settling for the best one can be intimidating.
6 Core Banking Systems to Consider in 2020
If you are looking for a better replacement, a parallel core banking system, or want a challenger, read on. We have done the hard yards for you and come up with the best 6core banking systems to consider in 2020.
Finacle is created for core problems within the corporate and retail sectors. The system will give you a wide array of comprehensive web solutions and tools to efficiently address the needs of all users.
Additionally, the system powers digital transformation. You are free to choose a dedicated banking solution according to your specific needs across corporate, retail, trade finance, lending, and deposit consumers.
Finacle system allows users to enjoy a variety of benefits, including ease of integration with other bank partners. For instance, AMB adopted Finacle Stack, which eased the bank’s digital functionality. Its adoption increased cost efficiencies, improved the bank’s scalability, and enhanced operational security.
2. Oracle FLEXCUBE
Oracle FLEXCUBE offers a modular, interoperable, integrated, and comprehensive banking solution. What’s its key selling point? It’s an advanced data warehouse that enhances the banks’ ability to deal with customers’ evolving needs and expectations.
It is designed to address the core banking needs and improve operational workflow agility. For example, the system comes with outstanding features that drive enhanced customer engagement.
Additionally, it has a multi-level reporting system Oracle BI that improves insight generation, supports many deployment options – both premises and cloud, – and enables secure and rapid collaboration and integration.
A perfect example of this is Bank al Etihad. They adopted Oracle FLEXCUBE’s Customer 360 to enhance the display of their clients’ information in the front system. Initially, the bank had to gather customer analytics manually, which made data validation challenging. Besides, it was difficult to build algorithms because historical data was missing.
However, with the adoption of the system, the bank got a new interface that enabled the effective gathering of customers’ historical data. Even better, it improved customer experience in their interactions with the bank.
Holvi is a customer-centric system that allows users to manage their finances using powerful integrated tools. It was once chosen – in 2015 – as one of the game-changing fintech companies by Fintech City. With key banking features such as credit card management, online banking, compliance tracking, financial accounting, retail banking, loan management, and payment and transfers.
This software helps your users manage all expenses easily, access account, carry out online investment, and collect payment. Additionally, it allows for the centralized storage of documents.
If you are looking for software to enhance the control of your users’ financial operations, Moneyspire is a perfect option. It has a variety of features that makes it both cost-effective and efficient.
For instance, it doubles as an accounting tool and personal finance software that is seamless to use. Whether your clients are individuals or small and medium-sized enterprises, they will find the system’s two versions effective. The macOS and Windows versions of Moneyspire will also help the users track accounts, bills, budgets, and dues.
Moreover, the software enables users to download their transactions over a secure internet connection directly from their banks. Therefore, users do not have to worry about importing transactions manually.
Currently, Moneyspire Connect has more than 15,000 financial institutions in different parts of the world supported.
MyBanco is an open-source banking software. It is easily flexible and scalable to the needs of your business – especially in handling of customer accounts. Besides, its code is secure and meets all the requirements of the FDIC and Australian Securities and Investments Commission (ASIC).
This free core banking solution key features include;
- Credit Card Management
- Retail and private banking
- Financial accounting and transaction tracking
- Cross-bank communication (XBank)
Such features ease users’ banking activities by providing a one-stop-solution for most of their needs.
However, it is essential that you get the code right when changing the software to avoid potential errors and loopholes.
This web-based microfinance system also provides users with seamless access to diverse banking services. It is applauded for being highly responsive, fast, and effective.
In addition to its user-friendly interface, this open-source software features ensure you have an optimized microfinance environment. OpenCBS Cloud offers features such as;
- Client and Teller Management
- Loan Origination and Management
- Basic solutions for accounting, Analytics, and Reporting
Additionally, OpenCBS has a tablet version that incorporates loan processing and risk management functionalities. For example, users can apply, check for a loan, and evaluate their financial risk using this software.
What to Consider When Choosing a Core Banking System
There’s a lot to consider when setting up a successful core banking system. The technology involved should guarantee the delivery of the end goal. Here are a few guidelines to help you choose a system that aligns with your needs.
1. Types of Core Banking Systems
Core banking solutions are categorized into on-premise, web-based, or cloud-based.
- On-premise toolsare installable within your existing infrastructure and are highly customizable. Such solutions allow you to store the information on the local server.
- Web-based solutionsallow users to access them from anywhere.
- The cloud-based softwaresolutions are safe and secure because they are accessed from a secure cloud.
The most suitable banking system for you should make running the operations in your bank smooth. Additionally, it should enhance user experience and customer service. Besides, whatever solution you choose, ensure it not only addresses your current workflow challenges but will be applicable for years to come.
2. Put the Customer First
Banks struggle to link customer data. Such a challenge has increased the use of master data management layers in the banking industry. However, such layers are limited because they are not coherent; they do not provide a complete overview of customer data.
Customers want a system they can manage all their financial activities. The best banking system should be customer-centric, with a core source of customer’s data and the features to use it.
3. Open Source vs. Proprietary Programming
Different developing language is used to create various subsystems of the legacy banking technology. If your current banking system uses outdated languages, it becomes costly and ineffective to maintain it.
Therefore, opt for an open-source programming method. It is easier to maintain and extend without worrying about high costs or legacy issues.
4. Automation vs. Manual Intervention
The ideal core banking system should attract low costs on the environment, infrastructure, and service delivery – even when the customer base grows. Manually-operated systems rely on niches skills implying that you will need an individual to run it. However, ubiquitous automation exploits the effectiveness of the cloud and requires fewer people and resources to keep it operational.
5. Avoid Complex Systems
Legacy systems are expensive to create and maintain. They are fragile, as well. Making any changes to such systems is not easy, as the elements appear seemingly unrelated. In case the change happens, it is difficult, costly, and with many disruptions.
Therefore, it is worth considering modular-based systems. They have the least resistance and low-cost implications. Besides, it is possible to change one element without disrupting the entire platform.
With the advancement in technology, there is no doubt that automated finance is the future of many sectors. With dynamism in every industry, the customer’s needs around the globe are changing. Banks also need better core banking software to beat the competition and improve their service delivery.
Integrating digital marketing solutions into your banking platform improves customer service delivery and helps to outgrow your competition. However, it is advisable that you take enough time to understand any banking software before incorporating it into your bank.
The right software should be simple and flexible, easy to automate, and customer-centric.