The banking sector has been going through technological advancements over the past decade. Digital Core Banking Solutions are replacing traditional Core Banking Solutions in banks and other financial institutions. The reason for this change is that use of a digital core banking system has eased the way banking transactions are being done. The traditional core banking systems were not able to cope up with the changes in customer demands and new-age digital technology. To meet customer’s needs a revolution in core banking systems was necessary.
Need for Digital Core Banking System
A customer’s needs in the banking sector are constantly changing and there is an urgent requirement to adapt to technological transformation for enhanced customer experience. There is a growing need for a core banking solution that can not only result in the growth of the bank but also reduce operational costs.
Delivering customized products to the customer
In order to increase the productivity of the banks, they need a solution that can enable them to provide the necessary functionality to their customers. A digital core banking solution helps banks to develop customized products that will cater to the needs of their customers such as online new account opening or bill payments directly from the bank’s portal. This increases productivity, reduces operational effort and time and gives a bank the ability to serve its customer faster.
Provides security at every juncture
Data security is an important part of any good digital banking solution. Security is provided at every juncture right from the user authentication to banking transactions to debit card pin change requests. It also addresses the various legal aspects that will ensure security and provide safety to third-party clients. The best core banking systems do not compromise when it comes to the data security of their customers.
A cost-effective alternative to traditional core banking
A good digital core banking solution can help reduce their operational costs for banks and financial institutions. Adapting a digital core banking greatly reduces the work force expenses, as automation of many processes has enabled financial institutions to perform at an optimum level.
Aligns easily with the external system
A digital core banking enables a bank to make every transaction and every service possible entirely via the internet. Customers do not have to rely on traditional branch based banking to access all their bank’s services.
These are some of the features that highlight the fact that the automation of various banking procedures through a digital core banking solution has benefited a bank but has also actually benefited the consumer.