What Are the Most Important Considerations when Choosing the Best Core Banking System?

One undeniable impact of the digital revolution is that customers expect the highest levels of efficiency and convenience in every sector, especially when it comes to their finances. Gone are the days when banking was a hectic and time-consuming process that involved long queues and frustrating, unending paperwork.

Thanks to the rapid evolution of financial technology, banks, and other financial service enterprises are able to provide maximum convenience and security. Customers can access all essential services including depositing, withdrawing funds, and even accessing loan products from the comfort of their mobile devices.

For a bank to survive in the current market, making banking as accessible and easy as possible to its customers should be the primary goal. This is why more financial institutions are turning to digital solutions. However, given the sheer complexity of the processes involved, implementing a digital solution is a very complex task.

This is where core banking systems come in.

Simply defined, a core banking system is a group of software that supports all the transactions of a bank, including making and servicing loans, opening new accounts, processing cash deposits and withdrawals, processing payments and cheques, and calculating interests, among other functions.

Given the sheer number of core banking systems available in the market, getting the right choice for your institution can be a challenge. Your requirements will differ depending on your needs, and there are various factors you should consider to see if a given product is the right fit for you.

In this guide, we discuss some of the factors you should consider when choosing the best core banking system.

Considerations when Choosing the Best Core Banking System

With the FinTech sector extremely flooded with multiple options, you have to ensure that you are making the right choice when it comes to the core banking system. So what are these considerations that we have repeatedly mentioned? Let’s get right to them!

1. Technological Considerations

This is undeniably one of the most important factors when it comes to core banking systems. The level and sophistication of the technology used will determine how smoothly the bank’s operations run.

Most companies utilize legacy platforms because of their reliability and high level of support. However, these old technologies face various challenges when it comes to adaptability and scalability.

Legacy core banking platforms have business logic built into the core which in most cases makes it difficult to expand the current functionality or add additional functionality to it. This makes it difficult for organizations to grow with them since each expansion will require the whole core banking system to be dismantled and built again.

The best core banking system should be easily scalable and compatible with other new technology, making it easy to expand whenever the need arises.

Another technological factor to consider for your core banking system is mobile app support. Over the years, humans have become more attached to their mobile devices. As such, businesses that deliver their services via mobile applications see a significant competitive advantage over their counterparts. You should ensure that the mobile applications are secure, easy to use, and reliable.

Reliability of the app is mandatory since no one wants to download an app on their phone that constantly crashes or has bugs. Choose a platform that allows you to keep up-to-date with new Android or iOS updates.

As much as mobile applications are increasingly popular in this age, having web-based online banking is also important. Most core banking software solutions often ignore the demand of corporate customers who prefer well-designed native web banking portals. As much as most individuals are keen on using mobile apps, most corporate customers prefer using the web interface on their laptops or desktops.

This means that your business needs to have a robust online banking portal on the web that works efficiently on all popular browsers. You should ensure that your web banking has two-factor authentication for extra security. Any core banking software needs to be secure and committed to staying secure.

HSG products offer a comprehensive end-to-end banking functionality that appeals to the needs of customers. Our product bundles have served customers in multiple countries and regions worldwide which has grown the company’s reputation and extensive recommendations.

There is no need to invest in a core banking system that ends up obsolete in a couple of months after implementation. By opting for HSG core banking systems, you will take full advantage of a versatile solution that is not only easy to maintain but rides on each new wave of innovation.

2. Business Considerations

Apart from having the technological side of matters covered, core banking software needs to allow you maximum functionality and easy operation. This would involve having a system that makes it easy to carry out day-to-day operations. The core banking system needs to allow you to develop and expand depending on the way your business scales up.

Choose a core banking system that automates most processes which then allows you to focus on other business processes. This has proven to increase client satisfaction significantly by minimizing unnecessary human intervention except when absolutely needed.

An effective core banking system will also allow for the automation of data export to the accounting system. This means that the hassle of manual entries from the multiple daily transactions is evaded. This facilitates easy accounting, especially for payment service-providing companies.

Who wants a core banking system that does make your work easier? HSG Banking Engine enables your company to strengthen its core while facilitating new capabilities for innovation and greater customer engagement and satisfaction.

The cloud has become an indispensable tool in the world of financial software in the digital era. Investing in a native cloud solution is preferred over simply moving an existing on-premise solution to the cloud. With a native cloud solution, you have remote access meaning that you can quickly launch or terminate features and programs from anywhere. You can also disable servers when they are no longer needed to reduce costs.

As a cloud-native solution, the HSG banking engine allows you to achieve a cost-effective approach to scaling up. We understand that as time goes on, the needs of clients and infrastructure needs change. You need a core banking system that allows you to match the precise evolution of your clientele and that’s where we come in.

3. All-In-One Solutions

What you essentially want when opting for a core banking system is a solution that gives you everything you need under one roof. In the financial services sector, a high level of responsiveness from the system is paramount.

Your customers want to access all your services in one application, without the need to keep downloading and installing different products for different offerings. Even your staff members will appreciate a system that brings together all the resources they need to do their work under one application.

HSG promises this and much more, with a straightforward and easy-to-use platform.

A simple, fundamentals-only solution with minimalist architecture will ensure that you avoid finding yourself in charge of a complex labyrinth. This ensures everything your clients or members of staff need is easily accessible, making everyone’s work way easier.

No matter which sector you are in, HSG solutions cut across multiple industries whether in retail banking, corporate banking, wealth management & private banking, virtual banking, money lending, and payment provision. Our core banking systems enable our clients to achieve desired business growth beyond their expectations.

With over 20 years of experience working with clients all around the world, our experts understand how to tailor our solutions to your specific needs. We ensure that we stay different from the average platforms. We offer customer-centric solutions that are not only flexible but agile. We also offer competitive pricing with respect to the value of your money.

With the right architecture in place, financial institutions can shift from traditional, complex, and intertwined core systems to lightweight and highly configurable options. HSG provides a solution like no other.

Wrapping it Up

In the digital era, financial institutions must operate on agile and flexible core banking platforms to keep up with the constant evolutions. The core banking systems are the heart and soul of today’s banks. These need to be transformed into a data engine with a process-centric vision that provides a transparent and clear picture of the customer.

With efficient core banking systems such as HSG Banking Engines, financial institutions can break free from the rigid solutions that were common in the past. This offers an effective solution to financial institutions that are looking to make the necessary investment in their technology.

We aim to make banking easier and simple for our clients. As a global FinTech solution provider, we are committed to embracing customer-centric and cost-effective digital solutions brought by new technology. Get in touch with us today and let us start this amazing journey with you.