Unlocking the value of data and service from your core banking platform
Your core banking systems form the foundation of the services your bank provides. And that means the effectiveness of those systems will determine your ability to manage risk and attract and retain customers.
To succeed, you’ll need a customer-first focus, and an effective strategy in place to help you address organisational challenges and drive business growth.
Key Challenges
At 9Yards, our expert teams work with banks and other financial services organisations to plan and implement successful digital transformation. For banks, the drive to improve customer experience is at the centre of many strategic decisions. And key to customer experience are data quality, service availability and data management practices. We’ve found that there’s a consistency to the challenges facing banks when it comes to unlocking the value of data and service from core banking systems.
Data silos
Data stored in isolated pockets across systems is difficult to understand, define, and manage. These isolated pockets are often referred to as ‘data silos’. If your data is stored in silos that cannot talk to each other, it follows that it will be more difficult to access and analyse customer and operational insights. This in turn, impacts your ability to provide tailored services that meet or anticipate customer needs.
Difficult integration
Core banking software often struggle with integration. This can mean there’s significant effort and investment required to incorporate modern technologies such as AI. When planning and implementing improvements to core banking software, we aim for seamless compatibility and operation across different systems. While these integrations are generally complex and can create operational challenges, they’re made possible by specialist technical expertise, both internally and from technology vendors.
Legacy systems
Many banks still rely on outdated legacy systems, which are not designed for modern data analysis and service integration. Upgrading or replacing these systems is often costly, time-consuming and risky. The transition from legacy systems to modern platforms requires careful planning, execution and specialist skills to avoid operational disruptions.
Data quality and consistency
A common problem for banks undergoing digital transformation is poor data quality. Even when systems are upgraded and fully integrated, there can still be issues with inconsistent, incomplete, or inaccurate data. Poor data quality can have a significant impact on analytics and decision-making, leading to misguided strategies and lost opportunities. Accurate and consistent data is crucial for reliable analytics and strategic planning.
Security and privacy
Data security and privacy are core concerns for banks and financial services organisations. Protecting sensitive financial data requires security measures that will prevent breaches and comply with regulations. Balancing data access with privacy concerns can be challenging, especially with increasing regulatory scrutiny. To succeed, it’s important to prioritise implementing robust security protocols to protect customer data and maintain trust.
Regulatory compliance
The regulatory landscape for the financial sector has strict requirements for data handling, storage, and sharing. To protect sensitive personal and financial data, regulatory requirements limit the ways data can be used and shared. This can impact a bank’s ability to unlock the full value of data, even when it is high quality and managed in a way that improves access and analytics. Specialist consultants like 9Yards can help you navigate the maze of regulation and still get the most out of your data.
Vendor dependency
Relying on external vendors for technology and services can create dependency issues. An approach that focuses on meeting the bank’s strategic goals, customer experience and operational efficiency will reduce your dependency on a specific vendor. Avoiding vendor dependency will enhance reliability, empower you to negotiate favourable terms, and build flexibility and resilience into your strategic approach.
The benefits of digital transformation for core banking systems
In the banking sector, digital transformation usually means a fundamental change in processes as well as systems. The aim of these improvements is generally to introduce efficiencies that improve the customer experience, provide more personalised services, create new revenue streams with new products and all while reducing costs. We’ve identified a range of tangible benefits for banks taking steps to unlock the value of data and service from your core banking platform.
Tailored products and services
A well-configured core banking platform can unlock the value of data, to help you tailor products and services to different customer segments. This gives banks reliable insights to improve customer satisfaction and build trust and loyalty with personalised solutions and services.
Detect customer dissatisfaction early
By using data to understand the reasons behind churn, your bank can develop strategies to improve the customer experience and build loyalty, retaining existing customers and attracting new ones.
Enhanced credit risk analysis
Leveraging data for credit risk analysis enables banks to assess the creditworthiness of borrowers more accurately. This minimises the risk of default and enhances the overall quality of the loan portfolio.
Fraud prevention
Advanced data analytics can identify and prevent fraudulent activities, protecting both customers and the bank. Implementing robust fraud detection systems is essential for maintaining trust and security.
Operational efficiency
Streamlining operations through data-driven insights can reduce costs and improve service delivery. By leveraging APIs, banks can integrate with third-party services, enhancing functionality and customer offerings.
Seamless data flow
Ensuring seamless data flow between different systems improves operational efficiency. Real-time data processing enables instant responses and solutions to customer queries, enhancing the overall customer experience.
Automation
Automating routine processes using data-driven decision-making reduces manual errors and speeds up transactions. This not only improves efficiency but also allows staff to focus on more strategic tasks.
Core banking system performance monitoring
You monitoring system performance and optimising resource allocation will keep your core banking software operating at peak efficiency. This proactive approach helps in maintaining high service standards and minimising downtime.
Healthy vendor relationships
Technology vendors do their best to provide products that match client requirements. However there is always a risk of creating dependencies on one vendor which can lead in turn to issues with integration, negotiating favourable terms and other aspects of vendor relationship management. At 9Yards we’ve seen that working with a holistic, technology agnostic approach will reduce the barriers to leveraging data within the core banking solution.
Are you ready to unlock the value of data and service from your core banking solution?
Unlocking the value of data and service from your core banking platform presents its challenges, but with the right strategies and the right partner, the benefits can be substantial.
The expert team at 9Yards can help navigate these challenges. We excel at supporting banks and financial services organisations through the digital transformation process to enhance and improve their core banking systems. Contact our core banking systems specialists to find out how we can help.
