Banking has witnessed an exponential growth with wide range of transactions and products. These come under a system known as core banking. Core banking process includes complete administration of bank transactions through a central database. The core banking solutions simplify operations, manage risk & compliance efficiently, and support innovations for enhancing customer operations by development of customer-centric business model. Various large banking organisations have adopted core banking solution owing to its deep functionality, operational performance, viability and flexibility. By managing integration, agility and scalability, core banking solution assists banks in handling Islamic & conventional banking, optimum cash utilisation, efficient payment option, universal banking, end-to-end reconciliations, wealth management, risk management, and retail banking.
Rising need for Customer Account Management to drive the Market Growth
Soaring demands from customers are influencing banks in switching to newer technologies. This is a major factor driving the growth of the global core banking solutions market, according to a study by Future Market Insights (FMI). Rising necessity of customer account management in such a way that customers find it easy and convenient to visit any branch and acquire information about the bank is enabling banking organisations in implementation of core banking solutions. In addition, banks are seeking cost effective solutions in order to reduce replacement costs, which in-turn is driving the market growth. However, synchronising core banking solutions with global industry requirements remains a key challenge hindering the growth of global core banking solutions market. This is because business environments and banking capabilities are not the same across the globe.
Initial Investment in Core Banking Solutions May be a Deterrent
The transformation of core banking system of a financial institution can be difficult for many bank executives. One of the major barriers is high cost of implementation. Core banking replacements involve high costs and take 3 to 6 years for implementation. Initial investment may be a deterrent as various core applications in banks currently utilise very old technology, having very low running costs comparatively than new core system’s replacement costs. For avoiding these large investments, some banks utilise digital technology for their front-end customer-facing systems, for example- websites, and stick to old systems for back-end or mid-tier systems.
FinCORE to Streamline Present Business Processes with Supporting Technology
Several established market players have commenced the provision of core banking solution software to several banks for instant reflection of transaction capable of being seen from any branch, better risk management, and smooth workflow. Designed keeping the extensive requirements of financial services industry in mind, FinCORE delivers in time with prevalent best-practices in industry. FinCORE provides the bank with a web-based/browser-based solution, with an opportunity to overcome current challenges at reduced costs by enhancing customer management measures. Risk management and information management is the key.
FinCORE’s core banking solution aims to help streamline current business processes with supporting technology. This solution will address inefficiencies and bottlenecks in current system that require process changes. Documenting process flows at activity level, FinCORE will enable consolidation of process flows across bank department.
Suriname-based Trustbank Signs a Deal with Path Solutions
Suriname-based Trustbank aims to implement the iMAL Islamic Banking and Investment System as its new core banking platform, by signing a new licensing deal with Path Solutions, an Islamic software vendor. For Kuwaiti vendor, this has proved to be a major breakthrough as it is the first ever deal of Islamic core banking software for the company in the Americas. After comprehensive assessment of the leading global solution providers, Path Solutions was selected by senior management team, for various business functions at Trustbank. Implementation of this new system is expected to be completed by the end of September 2017. Beating competition to huge core banking system deal at Suriname, Path Solution, was chosen to lead Islamic banking software market, with a well-established client base with the global reach & support network.
The information presented here is sourced from Future Market Insights latest report. A sample of this report is available upon request.
Author: Abhishek Budholiya is a tech blogger, digital marketing pro, and has contributed to numerous tech magazines. Currently, as a technology and digital branding consultant, he offers his analysis on the tech market research landscape. His forte is analysing the commercial viability of a new breakthrough, a trait you can see in his writing. When he is not ruminating about the tech world, he can be found playing table tennis or hanging out with his friends.