Core banking services are the digital backbones of banks. They support multiple functions including account management, transaction processing and customer relationship management. They also handle monetary transactions such as deposits, withdrawals and transfers. Most incumbent core systems bundle together customer recordkeeping, consumer and commercial deposit and loan account servicing, general ledgers, and a range of other financial processing systems. These platforms are often hard to replace without a major disruption or cost.
Customer Relationship Management (CRM)
CRM is an all-encompassing term that can refer to strategies, processes and software to manage customer relationships, both in person and online. Its goal is to boost customer satisfaction and retention and acquire new customers. Both CRM and ERP (Enterprise Resource Planning) are computer programs used for business management but have different purposes and work with different data types. CRM focuses on gathering customer or lead information to form a holistic view and make it visible to company teams like sales, marketing and customer service, so they can provide the best possible experience for potential and existing customers.
There are numerous CRM programs available, such as Hubspot, Zoho and Oracle Cloud CX, which offer features including email marketing, lead management, automated communications and analytics. However, it is important to find a program that will suit your company’s needs and budget. A good starting point is to research the market and compare prices, functionality and features.
Enterprise Resource Planning (ERP)
Enterprise resource planning (ERP) software helps companies manage day-to-day business operations under one suite. It connects finance and accounting, human resources, customer relationship management, inventory and product management, manufacturing, and sales under one platform to boost company efficiency and allow for real-time assessment of core banking service business processes. ERPs have a strong track record in helping businesses increase productivity and make better decisions with more transparent, accurate data. However, it’s important to be aware of the potential roadblocks that can prevent a successful ERP implementation and mitigate them whenever possible.
Finance/accounting: ERP software can help accountants track and automate daily transactions, report on key financial metrics, comply with revenue recognition standards, and mitigate risks. Streamline operations by integrating your ERP with add-ons to offer additional functionality such as human resources management, time and attendance, and payroll. For increased flexibility, choose a cloud-based ERP to access information from anywhere with an Internet connection. This makes it easier for a warehouse manager to check inventory from the shop floor, or for a salesperson to access customer data while on a call.
Business Intelligence (BI)
Business intelligence (BI) is a technology-driven process for analyzing data and presenting useful information that helps executives, managers and workers make informed business decisions. BI tools collect raw data from internal and external sources, analyze it to answer specific questions and create data visualizations and reports that are made available for end users.
The goal of BI initiatives is to allow businesses and organizations to gain a competitive advantage by using analytics to improve decision-making, boost internal productivity, optimize business processes and gain insight into current and future market trends. BI tools can be used to track progress towards goals like increasing sales or reducing costs, but are also widely used for more operational tasks, like managing employee performance or planning supply chain logistics. One common BI tool is the dashboard, which offers a snapshot of key data for managers without requiring IT support or complex SQL queries. Choosing the right dashboard for your needs will be dependent on your business use cases, but many vendors offer tutorials and FAQs to help users get started.
Analytics
global liquidity and cash management systems are central to banking operations, providing account management functionality and transaction processing. They maintain records of accounts, such as savings and certificates of deposit, process payments and daily banking transactions, calculate interest rates, and update general ledgers. In addition, they also provide customer relationship management functions and establish criteria for minimum balances or limits on withdrawals. Banks spend millions on their existing systems, which interface with tens or hundreds of other systems and handle huge volumes of data. They are expected to function without interruption, as prolonged outages can lead to regulatory scrutiny, customer opprobrium, and loss of revenue.
When selecting a new core banking system, banks should begin by conducting a comprehensive needs assessment. This should include identifying their current pain points and objectives for the future. For example, they may need to expand their product offerings or increase operational efficiency. Alternatively, they might want to improve customer service or make their existing products more user-friendly.
Conclusion
A financial institution’s core banking service handles credit, loan and deposit procedures. It also manages account management, transaction processing and customer relationship management functions. Minimize tactical investments in existing systems, but stay ready to migrate when it’s time. This means maintaining general preparedness and a business-risk-focused evaluation of the system.
