Banking Software System – Top 4 Features to Look For

Digital innovations have transformed various industries in the past. One such industry that underwent a huge transformation is the banking sector. To meet the changing demands of the customers, banks had to adapt to transformations swiftly. The banking sector made it a priority to provide customer-first digital service and it paved the way for digital core banking initiatives. If you are planning to up your game today with the best digital software system it is time for you to adopt one with the best features. Here are 4 features that you must look for in a banking services system.

A banking software system will offer a myriad of features and applications. This list is to help you pick out the best based on its features:

Advanced security integration

The banking solution should allow advanced security integration. As banking activities tend to become more and more online, money mismanagement and fraudulent transactions are highly likely to occur at any time. One of the key features that you must focus on in a core banking system is high-priority safety features across all verticals of the banking sector. Options like dual authentication processes and digital identity management make sure tight security is on spot from both the bank and customer sides. The banking software should comply with the latest banking rules and regulations of RBI, NPCI, UIDAI, and IDRBT and support banking at different levels. 

Digital management of cash

Day-to-day activities such as deposits, withdrawals, and transfers can be processed digitally without any in-person contact. This makes the regular manual activities highly safe and efficient. As banking activities tend to become more and more online, money mismanagement and fraudulent transactions are something that may occur occasionally. With continuous upgradation of the hardware, the software should extend its support for changes in the future. 

Customer onboarding

In the traditional banking system, onboarding is one of the highly complicated tasks considering the factors such as compliance with regulations, making most of the talent etc. with the Video – KYC & Centralised KYC application, you can make customer onboarding less cumbersome and seamless. The software helps in easy verification of the customers right from the processing of applications. The customer onboarding features helps you escape the hassle of endless paperwork and verifications. Customer onboarding feature curbs operation costs spent on customer visits & time spent. The entire process of taking a new customer becomes possible with only a few clicks.

Other features

The banking software systems must also support other processes conducted throughout the day.

  • Loan management
  • Customer relationship management (CRM)
  • Integration with new financial products
  • Record maintenance
  • Best safety practices like firewall and DCDR against common software attacks. 

These modules make the daily banking operations much more efficient. It also helps the bank boost customer engagement and generates better revenue. This is because customer engagement and excellent banking experience are the two most important pillars that make any banking experience outstanding.

Bottom line

The online banking sector is about to transform the world of banking. Maximum proficiency and outstanding efficiency are what banks desire and to attain that, hire the best online banking software provider who offer an integrated solution to every problem.

What are the Payment Solutions that Banks Require in Modern Times?

The payment solution that banks require in modern times is Online banking. It is also known as Web banking and Internet banking. It enables the customers to make open payments from any application. There is no middle person and no unnecessary fees for the transaction. It makes communication easy with both parties. That is the customer and the bank. Online all banking solutions enable a customer to conduct any financial transactions via the Internet. 

Modern banking services contain innovative products such as Core Banking Solutions; Demat accounts; Debit card/Credit card; No frills accounts; Net Banking/ E-Banking; Mobile banking, Automated Teller Machines (ATM); Insurance, etc. These are some of the Modern banking services. This online banking provides customers with Services that are traditionally available in a local branch that contains deposits, transfers, and online bill payments.

Services that are provided in online banking services

  • To receive notifications, warnings, alerts, messages, this can be updated directly from the bank.
  • To chat with the bank and get information on the following:
  • To Pre-approved the loans
  • It enables Mini statements
  • Receive Card details
  • Fixed deposits
  • Credit Card balance and reward points
  • Helps in Funds transfer
  • Bill payments transaction 
  • To be notified about recent updates
  • Cheque Book requests
  • The payment feature is already underway and will be functional soon.

Core Banking Solution (CBS):

Core Banking Solution (CBS) is the connectivity of banks through networking their branches. It enables the consumer to manage their accounts. It provides available banking services from any branch of the Bank on the Core Banking Solution network. No matter where the account will be. The consumer becomes the bank’s customer. Under the Core Banking solution, they are interconnected with each other.

  • The core banking solutions are entrusted with protected services.
  • It sends notifications, warnings, information, and proposed Communication to customers. 
  • It also provides a keyboard-based auto-response
  • They provide the customer with a communication facility. That is two-way messaging.
  • They provide flexibility to their customers.
  • They have optimal control over their bank services.
  •  They enable us to obtain money online.
  • To deposit a cheque for credit into the account.
  • It enables the deposit of cash into the account.
  • To deposit cheques/cash into the account of some other person who has an account in a core banking solution branch.
  • To get the details of your account statement and online banking solution. 
  • To transfer the funds online from an individual’s account to some other account – have to provide both the accounts of Core Banking Solutions branches.
  • To obtain Demand Drafts from any branch on Core banking solution – the amount will be debited to the account online.

Net Banking:

It is the easiest way to go hand in hand with online banking. It is convenient for all, and the banking can be done from any place. It transfers the funds, payments, recharge, bills, balance inquiry, etc. without any delay. Each customer has his Identification no. and passport. It makes net banking easier. It is also known as electronic fund transfer. Online Digital banking solution enables the customer to conduct financial transactions through the internet. Consumers need not visit the bank for their basic transactions. A customer needs a mobile, their ID and password, an Internet connection, and a bank card to register. Once registered then the consumer is all set to use the online banking services.

Mobile Online Banking:

Mobile Banking is a medium provided by the bank for the customers. It enables them to make financial transactions through their mobile. It is also one of the easiest ways for online transactions. It enables us to transfer the funds, payments, recharge, bills, balance inquiry, etc. without any delay and query. 

Various online Banking services offer online banking varied by a different organization. Generally, many online services offer basic services like transfers and bill payments. While some banks allow their customers to open new accounts online. They also provide applications for credit cards through online banking portals. Other functions like change in address, ordering checks, stopping the payments on checks

Bottomline

Finacus has been one of the leading companies that is providing path-breaking banking products and services that are making banking easier, smarter, and safer for both end-users and service providers. To know more about these products, please contact us for a demo. 

How Does WhatsApp Banking Work?

WhatsApp or WhatsApp Messenger is widely used as an instant messaging service (IM- it is a cross_ platform centralized instant messaging)

It is an American freeware and voice-over service. It is maintained by Facebook, Inc. This widespread WhatsApp service enables the users to exchange text messages, video calls, voice notes, voice calls. Alongside sharing images, videos, documents, locations, and other services too. The WhatsApp application works not only on mobile phones but is also convenient to use on desktop computers.

WhatsApp upgraded its services to the next level. It is not only a software application anymore. It not only enables the users to chat, share documents, pictures, and videos. But also formed a partnership with banks to settle down the queries on a real-time purpose as an online bank software.

Formerly WhatsApp has accelerated its services in banking and transactional services throughout India. They allied with the Government of Delhi and the National Payments Corporation of India. Several banks formed their partnership with the WhatsApp services. They united their services with WhatsApp e-banking to facilitate better banking services in India. However, banks have boosted their banking services not only through WhatsApp but also on many other social media platforms.

WhatsApp banking is protected with end-to-end encryption as all the messages are secured in the same way through end-to-end encryption. Eventually, your account details are not shared with any individual. There is no need to input your confidential data such as PIN or password while using WhatsApp banking service or messages. As it does not offer transaction facilities.

WhatsApp banking services are extended by following banks like Private banks, Small Finance Bank, Leading Co Operative Bank, etc. This online bank software assists the customers to receive their updates and available services via the messaging platform.

Finacus Solution Pvt. Ltd. (FSPL) initiates the WhatsApp Banking Assistant. Through FSPL several banks or financial institutions can eliminate many drawbacks that are faced head-on by the banks or financial institutions with their customers due to lack of communication. Finacus’ solution characterizes itself with the innovative banking channel that connects the customers to the bank. They can communicate and expand digital financial services to a broader community of users.

Advantages of WhatsApp Services:

  • The Finacus Solution Pvt. Ltd. (FSPL) WhatsApp Banking is an End-to-End encryption solution
  • It sends notifications, information, and proposed Communication to customers. 
  • Finacus Solution Pvt. Ltd. (FSPL) WhatsApp Banking provides 24×7 service for their customers.
  • It also provides a keyboard-based auto-response
  • Intelligent conversation

They provide an in-build automated two-way messaging service to the customer. They provide the customer with a communication facility.

  • They provide maximum flexibility.
  • They have optimal control over their services
  • They provide the customer with smart operations- like a self-service dashboard, run campaigns, get reports, and analysis.
  • Finacus Solution Pvt. Ltd. (FSPL) WhatsApp Banking provides fully managed solutions for their customers.
  • It enables a Single API system in their online bank software.
  • Finacus Solution Pvt. Ltd. (FSPL) WhatsApp Banking provides you with Opt-in & Opt-out Management for the easy use of the customer.
  • They have a message template technique.
  • Interactive Two-way messaging conversation between the customer and the bank services
  • It provides the consumer with the menu of Core Banking system integration.
  • It also enables keyword-based Auto responses
  • It provides a smart dashboard
  • Rapid deployment

Transaction Performed using WhatsApp Banking Services:

  • It facilitates a balance inquiry.
  • It enables you to look over your mini statement.
  • It permits transaction status.
  • It helps with cheque book connected requests.
  • It enables you to help with debit card-related requests.
  • It enables deposit-related queries.
  • It provides an account statement.
  • Other facilities like fund transfer, Bill Payment (Financial Transaction), etc can be offered if requisite approvals/permissions are available

Bottomline

WhatsApp banking service has become a popular way for both customers and the banks to receive and send vital information regarding transactions and other services. Finacus with its revolutionary products and services is helping in making WhatsApp banking a successful endeavor.  Please call us for a free demo to know more about the products and services.

What are the Benefits of Contactless Customer Onboarding?

Technology has ushered every segment of the business with something or the other. For the bankers, it has made various banking processes simpler and secure. Unlike the banking methodologies followed two decades back where everything was done manually; modern banking takes into account the advanced digital infrastructure providing seamless, secured, and high-performance banking services to the customers.

The Core of Modern Banking lies in Real-Time Services

Customers have always looked for services that would provide them with comfort by being hassle-free. In these competitive markets, especially when FDI stands at 74% and 20% in private and public sector banks respectively, it is important for the institutions to offer the best services by introducing all possible means that would ease the hassles customers face. The management of the banks is now turning towards software-based companies to provide them with a new business model which would help increase and automate the banking engagements and customer relationships. These companies have stood up to the expectations of these financial organisations by providing them with innovative, integrated software solutions based on Artificial Intelligence (AI) and blockchain technology. The combination of the two in the online bank software ensures quick service to the customer without compromising with the security & safety of the information.

Advantages of Online Bank Software

Ever thought about how banking was two decades back? The employees in the bank fraternity who have either retired or going to retire in the next 3-4 years would recollect the days of the big ledgers, manual entry of data and transactions, the tension of data mismatch and forgery, and many more. The introduction of a centralised system and online bank software has provided the following benefits to the banks—

  • Quick redressal of customer complaints from any corner of the country
  • Keep track of the transaction and prevent money laundering
  • Secured mobile transaction and hence, reduced customers on the bank floor
  • Offer an end-to-end and point-of-sale solution 
  • Easy and quick bill payments for the customers
  • Conduct real-time and instant solutions to account opening and Know Your Customer (KYC) related formalities
  • Contactless Customer Onboarding process

Contactless Customer Onboarding with AI & Blockchain

AI and blockchain have been the buzzword and very few of us know that the application of these two technologies is now used in the contactless customer onboarding process. The recent pandemic has forced us to maintain a distance and banking falling under the essential services category, the bankers had no relief. They had to continue their services towards the people. One of the essentials being the opening of basic savings bank deposit account (BSBDA) and fixed deposits (FD). The use of the robust, agile, and future-ready online bank software has made contactless customer onboarding possible. The following are some of the ways by which banks have been benefited in using this product—

  1. Reduced Risk of Contamination

Banking professionals are not going to get in contact with a person (irrespective of whether he/she is a carrier or not). The person availing the services would have to upload all the documents on the cloud and a person would verify the details via video conferencing. Thus, eliminating the in-person verification process.

  1. Reduced Time of Customer Onboarding

The traditional onboarding process took close to two to three weeks with a lot of manual work and increasing the chances of errors. On the other hand, this online contactless customer onboarding feature of online bank software does not take more than 30 mins. The maximum time that is consumed is during the verification phase. This phase includes processes like the customer identification process via video conferencing and then checking compliance through open API. It takes a maximum of 15 mins.

  1. Reduced Error

Manual input has always been filled with errors. The introduction of technology and analytics has increased efficiency considerably. Banks at the global level are going for facial, biometric, and voice analytics for online onboarding with zero error.

Bottomline

The above-mentioned are some of the benefits associated with the use of online bank software and the online boarding process. Finacus are into the development of such kinds of software and are also offering a demo to get the application verified in terms of user experience and usability. 

5 Valuable Advantages of Investing in Mobile Banking

The potential of the mobile banking industry is increasing rapidly. With smartphones becoming a staple, mobile banking is what most people prefer. Businesses and individuals enjoy the convenience of mobile banking and are open to more advancement in the field. This has made mobile banking apps one of the most critical drivers of banks. If you have not launched your mobile banking app you are a lot behind in the banking sector. If you are pondering the reasons, here are 5 advantages of investing in mobile banking apps today. The benefits of mobile banking solutions to customers are crystal clear but here are some distinct benefits of mobile banking to banks.  

Reduces bank’s expenses

Mobile banking on the whole boosts efficiency of the bank in the bigger picture. It does so by reducing the use of paper and going paperless, curbing the cost of printing, reducing the labor population, and more. Mobile banking also opens the opportunity to reduce costs by offering a service that’s ten times much cheaper compared to ATM transactions. Mobile banking makes the processing of transactions easier than in a conventional setting thus significantly improving the efficiency of the bank. Recent research has shown that the cost of mobile transactions may lower by 50 times than bank transactions in the future. Requires less staff to serve customers and smaller branch premises thereby reducing salary and rent expenses.

Monumental return of investment

 A recent study shows that mobile banking significantly enhances customer engagement and thus drives ROI in various ways. The ultimate point is that mobile banking services improve customer quality service. The gamut of features is not just reserved for checking balance or fund transfer but people can buy DD, Pay Order, Open and Close FDs, tickets, products, pay bills, and more. By offering various services in daily life makes mobile banking an inseparable part of life. This in turn builds loyalty and trust. The maximized use has paved the way for the company to increase income and reduce expenses by 15%.

Better customer experience

24/7 services and customization helps in increasing the quality of banking services and construct the trust of users. One of the primary benefits of mobile apps for banking is that the customers are not restricted to the bank’s working hours and ATM availability. Customers use mobile banking systems for the crucial reason that they have complete control of fund movement in their accounts, keep an eye on its safety, and employ the information services at any point in time. When personal transactions become manageable, it is easy to improve the overall customer experience.

Easy Communication

Mobile banking leads to an easy way to communicate with customers by providing information at regular intervals. Banks can push notifications, advertisements, change of policies, rules for customers.

Security

Mobile banking security is the most crucial indicator of efficiency for the customer. Banks go the extra mile and use additional hardware to maintain maximum protection. The extra hardware includes fingerprint scanning, retina, as (two-factor authentication), and traditional passwords. This end to end encryption helps the banks to protect customer information from both ends.

Analytics to solve tasks

Through mobile banking apps, the banks can better understand the customers and provide what they require. By conducting surveys and analyzing customer action patterns, the banks can make better products and ultimately increase revenue. Banks can continuously add new features, products to make customers’ lives easier.

Mobile Banking Solution

As mobile banking has helped banks process 80 – 90% regular transactions without visiting regular branches. It may help reduce staff or use them for other important work for higher productivity. Mobile banking solution from Finacus is one such app that helps in experiencing all the above-mentioned advantages. The FinMOBICONNECT is an all-in-one mobile banking solution with an interoperable facility. It helps in achieving the following benefits

  • Customer Engagement
  • Easy, Convenient, Secure
  • Anywhere, Anytime

Bottom line

If you haven’t adopted the mobile platform for your bank, it is high time you make a wise decision. Finacus offers the best mobile banking solution with multi-pronged benefits. Get your demo today from our professional executives.

5 Features That Makes A Loan Management Software Outstanding

For a long time, the loan origination process and servicing systems under loan management were done on paper. The system was largely dependent on human support and was prone to human mistakes. With the digital transformation of the world becoming a reality, the financial sector matured and digital solutions infiltrated. In the leading industry of finances, loan management plays a crucial role. To maintain the trouble-free processing of loans, loans management gives a helping hand. Using the right loan management services helps in attaining multi-faceted benefits. With tons of products in the market, it is tough to choose one product and that is why this post lists the 5 must-have features of any loan management software you must consider.

Scalability

A loan management system that allows a financial agency to grow and branch out its products and services will be a reasonable choice. Also, the loan management software should cater to the needs of the financial institution or the bank from processing consumer loans to commercial loans. It should help in handling the complexity of the loan with high efficiency. Only when the solution is highly scalable can it help efficient and seamless management of the loans. Therefore make sure that the ideal loan management solution that you search for must have a broad range of use and offer high value to the company.

Deployment type

If you are a start-up you may not have an authentic IT department to develop advanced lending management solutions. But you need not worry because there are cloud-based load management solutions that will help you deploy highly flexible software that guarantees easy implementation. As a lender, you can benefit from the access to advanced lean management features promised by the cloud infrastructure. The cloud-based solution also offers trouble-free maintenance and upgrades to ensure seamless functioning.

Assessment of credit

Any modern lender would rely on technology to obtain data and obtain insights from the data. The perfect loan recovery management system should come integrated with all credit data points that help in analyzing the creditworthiness of the application and the applicant. The solution should be on par with the latest credit bureau data and should analyze the unconventional data points such as alternative data, including GSTN, social media input, and generic bank statements.

Centralized approach

The data stored in multiple systems to offer to various stages of the lending cycle is a typical legacy trait. The perfect loan management solution must store customer data in a core place for easy retrieval. This helps in accessing a 360-degree view of the customer data. A loan management software that sticks to a centralized approach paves way for the entire loan department to experience a holistic view of a loan applicant’s no matter who is handling the case. This results in a seamless loan management process.

Integrated Servicing Functionalities

Any solution that provides an integrated overview of various processes happening in the lending cycle such as customer onboarding, credit assessment, loan disbursal, and loan repayment modules reduces the burden on the shoulders of the lenders. Hence, a system that offers a range of customizable modules that allows fragment-less view of data is what is perfect.

Bottom line

A loan management system eases most burdens off the lender’s shoulder when chosen correctly. With the above features in mind choose the ideal loan management system.

Why UPI is Much Better Than a Mobile Wallet

A person who is about to use an online payment system will go for a Unified payment interface but what about the seniors in the online payment system, will they go for UPI or wallet money? According to recent research, UPI will grow to take up about 59 % of payment transactions by 2025. It is not surprising that 2.3 billion transactions were made using UPI as of February this year. This is clear proof that UPI is dethroning other forms of online payment transactions wallets and digital cards. What is the reason for this shift and how is the UPI payment system better than wallets? Let us find the answers in this post.

What is a mobile wallet and UPI?

Like the name says it all, a mobile wallet is a digital form of wallet in which one can store money and use it to purchase goods and services. One can install their favorite app and enter their details and money can be added to the wallet.

The Unified Payment interface on the other hand allows fund transfer between banks via smartphone without having to enter card details or adding money every time a purchase is made. UPI allows direct transfer of money between accounts without entering the account details of the beneficiary.

Simple to use

The main reason for UPI’s pick-up is that it is easy to use. Peer-to-peer transactions don’t require multiple steps. While a mobile wallet, on the other hand, involves multiple legs like adding money to the wallet from the bank account and then transferring it to the beneficiary. This can be easy for the new generation of smartphone users but not for everyone.

Identity of account

In the case of a mobile wallet or e-wallet, a mobile number acts as the entity of identification for the user’s account. The identity of the sender and receiver can be confirmed before the transaction by the wallet application. Contrary to the wallet, UPI payment uses a virtual payment address.

Improved adoption

Most mobile wallet companies opt for the UPI platform. This paints a picture of UPI’s popularity. Daily, the consumer uses different methods for different transactions. For instance, a person will use UPI to provide a salary while the same person may use the wallet to pay for fuel. With the launch of UPI, top providers like Google launched their apps and paved the way for increased use of UPI. The diversification of UPI helped people address the skepticism they had about e-wallets.

No KYC

Another great obstacle that e-wallets users face is the compulsory requirement of KYC for all customers. As the regulatory requirement began in March, the value of e-wallet transactions fell by 30 percent. On the other hand, UPI doesn’t require KYC as of now. Though a large population of wallet users has completed their KYC, it remains to be a challenge.

Interoperability

The interoperability of mobile wallets remains one of the major constraints. The sender and receiver should be registered with the same wallet app for the wallet-to-wallet transfer. For instance, if the sender has a Paytm wallet, the receiver should also have a Paytm wallet to receive money. Contrarily, UPI supports interoperability irrespective of the banks both have.

Benefits:

  1. Immediate money transfer through mobile device around the clock 24*7 & 365 days.
  2. Merchant payments with a single application.
  3. Utility Bill Payment, over the counter payment, Barcode (scan and pay) based payments.
  4. Donations, Collections, Disbursements scalable.
  5. Seamless single click payment.
  6. Raising complaints from mobile applications directly.
  7. Virtual address of the customer for pull and push provides for incremental security with the customer not required to enter the details such as card no, A/C no, ISFC, etc.

UPI supports Non – Financial transaction also:

  1. It is beneficial to Banks, Individuals as well as Merchants. 

Finacus UPI solution

Finacus provides a top-notch UPI platform with an API interface. It also connects UPI with the universal mobile interface. Our UPI solution is filled with features that will benefit the organization and the customer. Presently 46 Banks are using our UPI platform and we process 5.5 crore transactions per month.

Get your UPI interface today from Finacus, the best UPI solution provider to extend your banking service to the next level. Please ask for a demo experience of how well the UPI solution works.

Aadhaar Payment – A Growing Trend

While UPI has taken the centre stage with its simple and easy-to-use interface, AePS, its predecessor has gained steady traction over the past 12 months. Data from the national payment corporation of India reveals that the value of Aadhaar enabled payment system transactions has doubled in January 2021 compared to last year. The number has propelled to Rs 21,978.51 crore. The approved transaction number has also increased by 47 percent in 2021. In this post, let us take a look at what AePS is and how it has become a growing trend alongside UPI.

What is AEPS?

The Aadhaar enabled payment system or AePS payment allows the consumer to make transactions using their unique Aadhaar identification number and Aadhaar verification at point of sale or micro ATM. The AEPS is an initiative launched by the NPCI to promote financial inclusion.

Services available on AEPS

A consumer can perform the following function using the Aadhaar number that is linked to a bank account

  • Cash deposit
  • Cash withdrawal
  • Balance inquiry
  • Obtain mini statement
  • Aadhaar to Aadhaar fund transfer

How to use AePS?

You can use the Aadhaar enabled payment system by following a few simple steps:

  • Visit a nearby micro ATM or AEPS service provider
  • Give your unique Aadhaar identification number and your bank account number that is linked to Aadhaar
  • Choose the service that you want to carry
  • If you have chosen a payment transaction, confirm it by offering verification through the biometric scan of fingerprint or iris
  • Once the transaction is complete, you can collect the receipt as proof.

Advantages of Aadhaar enabled payment system

The primary focus of AEPS banking is to promote financial inclusion and providing banking services in the rural areas of the country using the Aadhaar number. AEPS provides abundant benefits to people of all sections

  • Simple and easy to operate
  • Safe and secure transaction
  • Supports interoperability across different banks
  • It promotes inclusivity by paving a way for people from underprivileged parts of society.
  • Using AEPS, the account holder can gain access to their bank accounts just with the Aadhaar ID number.
  • With AEPS, the candidate only requires an Aadhaar number and their biometric to perform any transaction.
  • The Aadhaar payment system allows easy disbursement of various government schemes like the Social Security pension, NREGA Handicapped Old Age Pension, etc.
  • Investment in processing AEPS – POS / Micro ATM is significantly lower than the normal ATM.

The reason for the popularity 

Top players in the market say that AEPS has resurfaced significantly in the rural areas during the pandemic. The growth is a reflection of funds released by the governments to support the citizens in uncertain times. In rural areas, 61 percent and in urban areas 60 percent transaction value growth was seen. A recent NPCI report has revealed that AEPS can also be improved further for authentication-safe transactions.

FinAEPS

FinAEPS is online-based immediate Aadhaar payment software that connects the AePS interface of the NPCI and CBS. It also Supports Aadhaar based transactions. It acts as a bank’s financial transaction switch, connected to the core banking system. The FinAEPS can be used in various ways

• Micro ATMs

• Tablets 

• POS Machines

• Agent Banking through Micro-ATMs or Tablets

Bottom line

AEPS is back on track due to its less technical method. It is time for you to grab your AEPS model from Finacus, the best provider of digital platform solutions.

Two-factor authentication: what it is and how to enable it

Any other online account is prone to attack by cybercriminals and data theft. Various breaches have happened in the past and continue to happen. Digitals accounts have become the magnets for criminals with the increased use of mobile and laptops. It is no surprise that even government accounts are being hacked. The day-to-day breaches of company and individual accounts have become highly common. The sad part is there are no signs that account hacks, data hacks, and other forms of criminal activities are going to slow down any time soon. The daily breaches can be reduced to an extent with an additional layer of protection using two-factor authentication. This post briefs about 2FA and how it can be enabled?

What is Two-Factor Authentication?

Two-factor authentication or two-step verification or dual-factor authentication is a method of security that requires the user to offer two different authentication factors to verify while entering the online account. First, the user will log in using their username and password. Once entered, immediate access to the account will not be granted with 2FA in place. The user has to provide another piece of information to prove that they are who they actually are. The second piece of information that is required during authentication can be any of the following:

  • Something you possess or possession factor: In this category, the user’s possession such as a credit card, a smartphone, or any hardware token is taken into account.
  • Something you are or an otp factor: This is the advanced type of 2FA that might include a fingerprint scan, iris scan, or voice recognition.
  • Something you know or knowledge factor: This could be a personal identification number, a password, or any specific key pattern that only the user knows.

With 2-factor authentication enabled, the compromise of a password alone won’t allow the entry of a hacker or a cybercriminal. Even if your phone gets stolen or lost, or password is stolen, no one else can gain access to your account without the second-factor information. Stealing the second factor is highly unlikely; hence your account remains safe from the hands of hackers.

How does two-factor authentication work?

The method to enable two-factor authentication differs based on the application or the vendor. However, irrespective of the vendor, the working process of two-factor authentication remains the same.

  • First, the user must enter their credentials like username and password to gain access into the account
  • This is often what the user knows. After the password and username are entered, the site finds the server with the same credentials and identifies the user.
  • In case a password is not required, the website creates a unique security key. The authentication tool will analyze the key for server validation.
  • The site then asks the user to start the second step of login. There are various forms of the second step like a security token, an ID card, a smartphone, otp received on a smartphone of the registered user. The possession or inherence factor is often used.
  • The user must enter the OTP generated during the second step.
  • Once the user provides both the factors, the user is provided entry into the app or the website.

Multi Factor authentication

Finacus offers a multi-pronged 2FA solution based on the following two factors:

  • Knowledge factor: Something known only by the customer
  • Possession factor: Something owned only by the customer

Bottom line

It is not late to adapt the best multifactor authentication system from the top-notch digital 2fa provider of India. For further information contact Finacus.

Core Modernization for Building Future Banking Experiences

The day-to-day life has become a bit chaotic with managing everything on. In a family, it is already becoming hectic to manage the smooth progress of daily activities. Amongst all this, no one would want to go to the bank and stand in a queue to get the transactions done. In organizations, employees are in search of the most efficient way to get things done. With the ratio of demand and time highly lopsided, the customers want to manage life with a smartphone. The same applies to the banking sector. Customers want an easy-to-use modern banking solution to manage the day to day banking activities.

Over the past decade, the financial institution has struggled to meet the requirements of the ever-changing world and customer expectations. This has ultimately led to upgrading the core banking solution.

The banking institutions are on a speed transition into the future from offering banking as a product to the same as a lifestyle. The banks develop a holistic view of the ever-changing demands of the customer in providing products and services. The following are the methods practiced in modernizing core banking.

Core banking modernization options

The central position of core banking systems gives them the power as one of the most critical components in the banking sector. According to industry experts, core banking is the primary record for bank accounts. Therefore it forms a technological base on which the processes of the banks are based. Because of this, a decision to change the core banking and financial services can be difficult. While the financial benefits of changing core delivering an improved banking experience for customers may be real enough, the overwhelming response has always been around how well the risks of such a huge transformation are understood.

The decision to modernize the bank’s core is not a binary choice anymore, thanks to the rapid advances involved in the technology that comes in support of various solutions. The banks have different methods when it comes to making the modern core. Modernizing the digital core banking system helps in achieving the evolution of banking services.

Banking as a product

  • The banks in this module are viewed as the seller of various products such as loans, credit cards, money market accountants etc.
  • It focuses on creating an integrated view of the customer across various business units or product functions.
  • This is the current module that manages customer experience rather than the channels.

Banking-as-a-service

  • Possible by the adoption of API and shift to open banking helps the bank to be rendered as a plug-and-play service.
  • Offers as-a-service platform and helps in the seamless integration of back-office.

Long term effects- banking as a lifestyle

  • Cash-free banking, part of day-to-day life and ubiquitous
  • The banks will move a step forward and coordinate the entire ecosystem.

Core modernization doesn’t aim at the short-term benefits but helps in enhancing the long-term benefits.

Digitization is primarily to achieve the great flexibility and agility that modern-day banks require. 

  • Payment hub
  • API-led payments
  • Blockchain-based payments

FinCore

FinCore is completely web-based core banking software that enables it to lay a strong foundation to meet the current challenges in the banking sector at a reduced cost of operation and maintenance. This multi-pronged solution from Finacus helps in scaling the quality of your business operations.

• User-friendly interface

• Save time and cost of processing

• Better management of risk

• Customer retaining features

Bottom line

It is never late to incorporate the best core banking solution and cater to the needs of the customer. Get your hands on Finacus’s FinCore after a demo to understand its capabilities.