Imagine upgrading your core banking system seamlessly without running a project for several months and engaging a dedicated team. This is possible thanks to cloud core banking platforms. These platforms use a microservices architecture and containerized code to create high-impact change. They also provide a wide range of API capabilities for seamless integration with external software solutions.
Cost-Effectiveness
A major migration project is expensive and risky, but banks can mitigate this by segmenting IT systems and components into logical tranches. They can then migrate these into the new core banking platform one by one. This approach allows them to continue operating as usual while reducing overall costs.
Banks are implementing new core banking platforms with the goal of improving customer service and fostering innovation. These new platforms are designed to be more modular, which makes them easier to adapt to changing business models in the real-time economy. These new platforms also offer cost-efficiency, enabling them to lower IT costs and provide more services to customers. In addition, they are easy to maintain and have high availability. This is because they have a configurable architecture that reduces complexity and the need for specialists.
Scalability
The scalability of cloud core banking platforms systems enables banks to quickly adapt to changing market demands and customer needs. This allows them to focus on innovation and improve operational efficiency. Banks can also leverage the scalability of a cloud-native core system to deliver new products and services to customers in a fast and cost-effective manner. The scalability of these systems is enhanced by the fact that they are modular and allow for flexible deployment using application programming interfaces.
Unlike on-premises systems, cloud-based core banking platforms allow you to retain more space and operate more effectively because the servers are handled by service providers. This scalability enables you to expand your capacity and offer new products without worrying about infrastructure or maintenance costs. The scalability of cloud-native core systems is further enhanced by their architecture, which provides increased processing power.
Flexibility
Unlike monolithic legacy systems, next-gen core banking platforms are built with microservices that enable them to scale easily. These platforms also offer automatic self-healing and real-time synchronization of transaction data. These features allow banks to respond rapidly to customers’ demands. Furthermore, they can use the suite of APIs provided by these platforms to effortlessly integrate their backend systems and to work with fintech and partners.
Banks that are undergoing a digital transformation must adopt an agile mindset and ensure that their technology ecosystem is ready for a change. This will help them streamline their innovation cycle and increase customer satisfaction. In addition, they can enjoy efficiencies that improve their bottom line. Moreover, a flexible cloud-based core system allows them to expand their capacity without worrying about exorbitant IT costs.
Efficiency
Unlike on-premises software, cloud computing provides banks with greater flexibility and agility. This allows them to respond quickly to customer and regulatory demands. In addition, it enables them to reduce costs and improve efficiency. In the banking industry, it is essential to invest in core systems that are secure and compliant with regulations. These platforms help to protect data from hackers, and ensure the integrity of information. They also help to monitor customer activity and identify potential risks.
Banks are often risk-averse when it comes to core replacement, especially since they have invested hundreds of millions in existing channels, customer-relationship management systems, data architecture, and other legacy applications. This makes it difficult to replace them with a new system at scale. However, it is possible to experiment with next-gen solutions by using them for less critical functions such as mobile banking and personal finance management tools.
Security
When choosing a bank products and services, banks should be aware of the security measures and procedures that they are expected to follow. A secure environment is vital to ensure that sensitive information is kept safe, especially in the case of a system failure. Banks should also consider the availability of support during implementation, and they will want to know whether their provider has reliable and dedicated assistance. Moreover, they will want to be certain that their vendor is able to transfer data from their current systems easily.
Conclusion
Finally, they will want a flexible and open architecture to facilitate future innovation. This will enable them to create new products and services quickly and efficiently, improving customer service. Additionally, it will help them to meet regulatory requirements.
