Why is it crucial for banks to go for digital core platforms?
The rapid development in the field of technology has brought a tremendous effect on the process of digital transformation in banking. But when it comes to modernization of banks, it is not an easy part, and the legacy systems play a great role in this. However, in order to provide better customer experience and streamline the banking process, all the banks should adopt the digital core banking technology. Well, there is one thing that is currently blocking such transformation is the process of transferring data from the legacy system to the new digital platforms.
There are two primary questions that every bank has in mind, and these are
(i) will this particular strategy bring success?
(ii) What if we lose all the data?
But most of the banks have not to find the right answers. In fact, some of them have started to change their core banking processes to integrate digital banking. As per the studies, around 30 percent of CBS replacements have achieved success, and developing core banking system architecture costs the banks around €50 million to €300 million. It looks like a huge amount of money. But there is a solution.
The solution for adaption of digital core banking
One of the most effective solutions here can be adopting the core baking platforms that have developed utilizing modern technologies. It is true that more flexibility can be enjoyed from a native banking platform, and this is quite important for banks as they have to stick with all the legal rules and regulations. You can consider the example of PSD2, XS2A, and the new ISA regulations initiated in the United Kingdom. The traditional banks can’t take maximum advantages of these rules.
More efficiency:
As people are living in the on-demand society, they need things now and as soon as possible. So, banks also need a platform that can run effectively 24x7 without creating many issues. This is where a perfect digital core banking software comes to play.
A greater level of flexibility
To achieve success, a banking platform needs to be quite flexible. Well, not all banks indeed operate in the same way. But they all need a platform that can offer them the required level of flexibility to develop what they want and whenever they want. If the platform deals with everyday customer services, for example, insurance and mortgage, then the products need to be very responsive. As the banks will have to create a new customer journey every day, there shouldn’t be a static platform.
A higher level of customer experience:
Uber, Spotify, Google, Starbucks, and all offer a fantastic customer experience. Sourcing all the essential things can now be done using your smartphone within a few seconds. Banks, adopting digital core banking, need to offer such types of experiences. The perfect core banking platforms allow a bank to develop and operate a new product that can serve customers in different ways.
Its all about better banking:
With the utilization of the digital banking system, banking can be done in a faster and better way. So, its time for every bank to think about core banking transformation.
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