Banking Software

How Have Banks Evolved Today with Banking Software?

How Have Banks Evolved Today with Banking Software?

What comes to our mind when the word BANK surfaces? A watchman on the front door and a busy office with a Locker Room. There is a vast difference between traditional banking and present-day Banking.

Where banks can be accessed only during official hours, modern banking makes it possible anytime and anywhere due to internet access. People can control their finances even when they are roaming internationally, which was a hard time in traditional banking. Also, issues like overhead costs vanish in thin air due to the present-day solutions of banking.

Today's customer is smarter, savvier, and expects the maximum convenience from his banking experience. With the same, there are always new things evolving within every industry, and so is banking.  

How are Banks Evolving? 

Modern banking has caused an evolution in the financial service industry. This includes a change in instruments, banking policies, and institutions as well. These are the new trends that act as a channel in changing the face of banking.  Banks have started using banking software that help them to carry out their daily functions efficiently.

Upgraded ATMs: ATMs now would involve contactless payments. You could conduct these transactions just like Google pay or apple pay, from your smart-phone. This provides overall bank security from ATM Hacks as well.  

  • Increasing Non-Banks: In banks, the majority of the resources are used in security, compliance, and other industry-specific requirements. This is not the case in Non-Banks. In Non-banks, resources will be given in to more Financial Technology, which will attract more techno-savvy customers.
  • Automated Financial Services: Many officials of wall-street are looking for other positions to fill, as new technologies have taken their places. Cloud computing and machine learning; automate their work to a large extent. 

  • Digital Banking: Every one of you would recognize this transition though it has just started. Banks have started adopting digital banking technology, in which customers use mobile or web platforms to make transactions. 
  • Banking wearable Devices: Smart-watches are being invented, which can push personal greetings to a customer's smart-watch if they enter a banking location. Devices like Glasses for a banker exist where he can order a customer's banking details while doing other customary tasks. 

When such changes are made, we can understand how the character of banking is shaped up revolutionarily. 

The new changes affect banks in many ways:

  • It provides banks tremendous flexibility to extend the product portfolio and customize the solution according to requirements, thereby enhancing agility and helping to identify new opportunities.
  • Aggregated cross border services through a comprehensive facility to view critical information and monitor transactions across geographies through a single surface.
  • The total cost of ownership is lower.
  • A flexible and varied feature repertoire for banks to design and deploy products for different market segments. 
  • Comprehensive 24*7 Solution to address corporate clients' 
  • Reduced dependencies on branch or call center directly, leading to cost-saving.
  • Improved efficiency, and collaboration through automation
  • Enables multilingual and multi-country operations
  • Maximizes service efficiencies and cost rationalization, facilities reduction in service distribution and transaction costs
  • Additional comfort of human intervention, through video, audio, and data communication, creates a truly satisfactory customer experience.

The effect over emerging markets

Emerging Markets are the most affected by the new banking solutions of the Era. India, China, and Bangladesh have seen a steady increase in Banking amendments and innovations.

 There are also places like Latin America who are still untapped, but they are making moves to go digital.

 Whereas in Europe, the state is such that the use of mobile banking has crossed even Asia, as the users have jumped from 28% to 47% in the present times.

Mobile Devices can decrease the cost of serving customers by 50 to 70%. By allowing the people who are still unknown to mobile banking or digital banking, the Banking industry can very well cross a threshold and hit a profitable market.

Trending Key Features of Banking:

Core Features: 

Banking would be nothing without some of its basic and stereotypical Functions. After all, what use would a banking app be if it cannot help you in the most basic of ways? So, mentioned below are some vital features that I present here:

Account Management: This is a basic process that includes managing the opening, maintaining, and closing of its bank accounts and legal entities. 

Deposit and withdrawal management: A banking app should support basic functions related to withdrawal and deposit of an individuals' account. 

Transactions management: It is a side of banking that addressed the operational needs and day-to-day transactions of business, corporate, and institutional customers. A banking app brings all these services to your fingertips. 

Loan Management: The loan management system is a system that helps automate the servicing and management of multiple lending solutions. A banking app helps in this process, as well. 

Payment Processing: A banking app directly helps you in keeping track of your various payments that are being processed into and from your account. 

Calculation and management of interest: A banking app aids you in calculating various interests and also managing them regularly from your Phone.

Design and Introduction of New Products: New products and innovations are always sprouting up now, and you engaging in a good app helps you stay up to date with any new changes and good updates in the banking industry.

Customer service and relationship management: Having a large client base is a good thing until you forget some things in some situations. An app can help you by keeping an eye on the behavioral patterns of your customers and keeps you updated about your current status with your clients.

What exactly is Core banking? 

Core banking, as said before, is the basic function of a bank that a person signs up for in the first place. It allows transactions between the customers and their bank-accounts, manages loans and mortgages. 

Core banking is an infrastructure that not only customers to the banks, but it connects them through Websites, mobile apps, and ATMs. Core banking has existed for long, but the internet connection has made it all the more instantaneous.

With Core Banking, Users wish to have fast services on secure software to facilitate transactions safely. Banks can respond to these demands with faster performance and more features, but they can give an immediate solution to all of the customers' woes.

Many new methods have already arrived, and banks have to ensure the integrity and security of the user data, providing users with access to their accounts. This is a very difficult ball to balance, and few have accomplished success in the same.

Mobile Banking:

Mobile banking is a close connection to core banking, as to how core banking would gain speed without smart-phones?

Would you find it more suitable to go to and fro from the bank? Or be sleeping in your room when you are accessing your bank accounts? Mobile banking enables you to remove all your troubles within the limits of your fingertips. 

Some important features are to be included in the wish-list of a mobile banking app:

1. 24 Hour Access to account balances, account history, and transactions. 

A mobile app should be a good helper for the person. This can only be possible when you have complete access to the banking processes and your accounts. Your account should not be unavailable to you when you need it the most. It is necessary to have complete trust that your account will always be available to you. 

2. Secure mobile Check Deposit, using the smart-phone camera. 

Mobile banking is not merely an app or a portal; it is a bank that a customer trusts the most. So, it is vital to know that the app you use is trustworthy or not? Sometimes there may arise some technical issues that can hinder your account security. After all, hackers won't come knocking at your door to ask for permission, would they? 

3. Bill payments:  

Bill payments are not a walk in the park when you are busy the whole day, and you need to have a separate time-out for calculating and paying your bills. Mobile banking enables you to save your time and pay your bills at your convenient timing, which is a comfort zone at its best. 

4. Loan Payments:

Loan payments are very important to pay on time, and mobile banking apps assure the same. You can get important notifications regarding payments of your installments, and this is a good advantage too. 

5. Money Transfers:

Transferring money is an important aspect of day-to-day life. Mobile banking gives you an easy way out from the hassle of confusing money order processes. You can send or receive money in the click of a button and some keys, and this is a huge plus for today's generation when everyone is busy in their ways.

6. Travel Services

With modernization, banks became advance for key features with users are habited like. Before a few decades, nobody had thought they could do all the things done by fingertips, but development in mobile technologies has made it possible. Now banks provide an application to book buses, flights, or any other transport in particular banking applications. Now the user does not need to switch to any third party app or add money. The user gets integration in the same banking app so all things can be done in a single app.

7. Security: A vital Necessity:

Devices are prone to be hacked or be put into technical problems, but that is no excuse not to use them. Similarly, Mobile banking might seem problematic at times, but that is no excuse not to use it. 

Mobile banking is efficient and accurate, but with it comes to some banking security features that keep it safe to use always. Along-with Safety, we should take care that the adaptability of the app does not get affected. 

Customers change their expectations, and along with that, there are changes in the available technologies too, but this only means that we should provide a system that very fruitful and easy to demand and adapt.

The security features that are an absolute must for any banking app are :

PIN / TAN Apps: The PIN is a password that you require to log-in to the app. TANs (transaction authentication numbers) are nothing but a one-time password used to identify if the owner is really behind the transactions. TAN is often sent separately through SMS or Email.

Biometrics: Touch ID is a system where the device registers and identifies your fingerprint. Facial recognition and iris scanning are known facilities that make impenetrable security.

Voice Recognition: Voice recognition is also an available option among the various facilities by banks.

Impressive Investment Banking:

Trading banks have a very strict schedule on the operations of their banking software. Financial institutions use extremely complex systems to get through the work-load of their processes, and so investment banking uses important processes simultaneously.

Investment banking app has started including the following features: 

Artificial Intelligence: Artificial intelligence is an inevitable part of all good software nowadays. Artificial intelligence is necessary for fraud detection and prevention and marketing. 

Block-chain: It is an important element for the exchange of trade data. Though trade data can be exchanged in many different apps Blockchain is the most frequently used app.

Cloud-enabled Technologies: Cloud-enabled technologies means that all the data is stored in a space that does not require any specific costs. You do not have to incur any added costs, and it also helps enhance user experience. Increasing efficiency is one added benefit.

APIs: Application Program Interface is a master help in improving mobile applications and user management, so any person can take guidance and use the program according to his satisfaction.

How do investors make the ultimate decisions in an extremely proactive way? This is thanks to their underlying software, which enables them to stay updated about every nook and corner of their processes.

They work with great companies like Arista and Pluribus to continuously keep transforming their infrastructure and keep it updated in reflection to the modern market demands. 

Traders have high-end algorithms that they need to do to compete in the market, and that is difficult without any software. With banking software, banks can generate and process transactions quickly and reliably. 

Top Trends In Banking 

Hybrid Cloud: 

Now, A Hybrid Cloud is a cloud that provides a mix of two premises, A Private cloud and a Public Cloud that provides a balance between the two platforms. It is a system online that stores and computes all of your data and integrates it in one place.

A hybrid cloud keeps the balance of both parties in the form of their organized data, and they have the ultimate flexibility. There are benefits like reduced costs, operational efficiency increases, and there is enhanced innovation too.

Hybrid cloud has become the main component for 75% of banks, and they have already achieved expansion in numerous ways. Over time, it is a good future if banks migrate towards a hybrid cloud system for gracious success. 

API Platforms:

The combination of apps and banks is volatile, promising a herculean future for the banking industry. What is API Banking?

Banks allow limited access to their core banking functions. The apps have access to their data and can execute banking functions like transactions, balance queries, and checking account functions, and so on.

Third-party platforms can integrate with banks that allow core banking functions at their doorsteps, and this is a huge plus for the banking industry.  

Robotic Process Automation:

Robots in banking? This might come as a surprise, but it is indeed a happening factor in the banking industry. 

Robotic banking is used when there is intensive labor work or repetitive work that takes up the unnecessary time of the employees. It is an artificial workforce designed to take up the basic functions like opening applications, clicking, copying and pasting information, sending emails, and other low-value tasks. These robots work at individual data field level and give up a lot of productive time to the human employees of the bank.

Robotic Process automation is noted as the fastest-growing segment of enterprise software, with 63% growth in 2018, as per Gartner's research. The percentage must have surely increased by now, and this is the reason why operational benefits have taken a huge turn for good. 

Instant Payments:

Earlier people used to go in person to make the payments. People now prefer Paytm and G-pay for further transactions, which are just two names of the trending online services for payments. 

The customers want fast payments, and when the banks can do the same, this is a proud moment for them. The banks have a good opportunity to have an increase in customer satisfaction. More transactions can take place, and the process will be more user-friendly. Thus, Instant payments are a great way of focusing on customer satisfaction.

Blockchain Technology:

Blockchain technology, according to its name, is a technology that holds transactional records while ensuring that the data stays secure. The data is broken into Blocks and stored transparently. In short, it can also be thought of as a chain of blocks that are stored but controlled by multiple authorities.

Many banks are leaning toward block-chain technology step by step, and it can be said as a growing trend. Blockchain is already being used in many ways, such as payments, avoidance of fraud, and knowing your customers as well.

With its use, the work between two parties is easily accomplished without the requirement of a third party. It is also beneficial that once the data is entered into it, it cannot be changed. If you try to change it, all the data in the preceding Blocks will change as well. It becomes extremely easy to detect the tampering of data due to this technology. It is true what the experts say nowadays, Blockchain may have a transformational impact on the banking industry.

Cyber Security:

Cybersecurity is a happening question and a necessity in today's world where each person opts for online work more and more. Hackers creep on your phones, and some people do not have even an ounce of knowledge about what steps should be taken. 

The Typical approaches towards them are no more reliable, and the sources for the same are impossible to eliminate with old tactics. An expert and patient approach are needed to obscure the danger of cybersecurity.

Therefore there is more advanced analytics coming forward to make this task easy. Numerous AI Programs are capable of detecting danger even before they strike and eliminate weaknesses in the software. There are possibilities that the intense digitalization may invite new risks, which might be hard to handle, but there are even good possibilities for more advanced cybersecurity programs.

Ending on a Final Note

Banking has no longer remained a tedious industry that depends on the human workforce for trivial conditions. Today, with banking software, banks are doing exceptionally well in terms of their service and approach. EBANQ, BankWare, CorePlus, Finacle are some of the banking software listed by GoodFirms.

Do check out free and open source banking software too.

Trends like Hybrid banking make it possible to make the work of the banks an extremely easy task. API Platforms have opened a bank in every Indian citizen's home. Moreover, who knew Robots would be a plausible element in banking processes?

Blockchain technology is a breakthrough in the world of banking, where maintaining and operating on data is a herculean task. Breaking all Data into Blocks and forming a chain of meticulous chains is a genius idea that is being the cause of a modification impact.

Thus, Digitalization has now been morphed into the banking industry to gloriously impact on the citizens of the country. Ultimate creativity is littered among the young minds in the banking industry, and digitalization is a sure way of moving forward toward sustained and successful heights. 

If you have come across any banking software that really impressed you, do share your views on the same here.

Dhara Zaveri
Dhara Zaveri

Dhara Zaveri is a writer at Vbiz Solutions who is continuously looking forward to filling up the void of knowledge with inspiration from other authors. IT is an element of surprise that inspires Dhara the most, and it aces all of her topics to write. It is a Splendid arena of knowledge on which Dhara love to write. 

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March 7, 2020 07:29

Helpful Artificial.....nice

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