The Need for Core Banking Software
Would you agree with me that financial institutions need channels to deliver their products and services to consumers?
Historically, financial institutions have relied on in-person interactions; requiring members to visit branches in order to open accounts, access loans, and savings products amongst other offerings.
Given the advancements in technology and ease of access to internet-enabled devices, financial institutions now favour a digital, self-service approach that not only provides instant, round-the-clock access to products and services but improves customer experience and reduces operational costs.
Choosing a core banking software for your credit union, microfinance bank or FinTech organisation is one of the most important decisions you will make as an organisation. The banking application would be the face of your organisation and the key service delivery channel, particularly in a digital-first, post-pandemic era.
Traditionally, this decision is made mainly by the board of directors of credit unions based on marketing presentation by software vendors, with cost being the major or only factor in some cases. In other cases, there is little input from the IT team or external independent analysts.
This is why you find many organisations with banking software that come with the following challenges:
- They do not fulfill the desired functions or requirements of the credit union
- They are too expensive to maintain
- They are not scalable / Difficult to enhance
- Bad customer experience / Not user friendly
- Compliance issues
- Compatibility issues
- Data Protection & Cyber security concerns
How then do you make the right decision when choosing your core banking software application?