A core banking capability assessment is an excellent way to ensure that your core banking technology and processes are fit-for-purpose today, aligned with your bank’s goals for growth tomorrow, and ready for future innovation.
We’re seeing consistency in predictions of what 2024 will bring. Regardless of who you listen to, top items on the list of what to expect include AI, cybersecurity, open banking, hyper-personalisation. The focus, for banks working to stay relevant, is on CX, innovation and security.
New players in the core banking platform market, coupled with the evolution of offerings from traditional suppliers, present opportunities and challenges for financial institutions, especially mid-tier banks.
What can a core banking capability assessment achieve?
As banking faces change and disruption, an assessment of your core banking capability by a banking technology consulting expert is crucial to:
- understand integration and/or configuration of your existing core platform in the context of what’s coming next
- ensure your platform is fit-for-purpose
- provide a basis for evaluating the options and flexibility of a range of platforms and technology
- plan and strategise new or existing transformation with recommendations for next steps.
Enhanced strategic alignment
Do the core banking systems you rely on align with the bank’s long-term strategic business goals? This is a consideration for your platform today and for future plans, particularly if digital transformation is on the agenda.
A key consideration of a core banking assessment is to check and understand that alignment.
Improved operational efficiency
At its core, improved operational efficiency reduces errors and minimises costs.
By evaluating current workflows and technology systems, a core banking assessment will pinpoint opportunities for optimisation and automation, leading to improved operational performance.
Risk management
Effective risk mitigation strategies require deep expertise of what constitutes risk and the potential impact. It includes identifying potential risks and vulnerabilities within the current system.
A core banking assessment helps banks mitigate operational, security, and compliance risks by identifying weaknesses and implementing appropriate control measures.
Customer satisfaction / CX
CX, including hyper-personalised customer experience, has been identified by many commentators as an essential consideration for banks in 2024, including those undergoing digital transformation.
A core banking assessment will guide decisions about the right technologies and processes to meet (and exceed) customer expectations. It will ensure you adopt modern, efficient services and create great personalised banking experiences that align with your business goals.
Competitive advantage
Does your core banking capability allow localised modifications to be implemented and integrated quickly? Are your systems adequately configurable and scalable?
A core banking capability assessment provides insights into how innovative banking technologies and practices can keep your bank competitive in a rapidly evolving financial landscape.
Scalability and flexibility
Are your core banking platform and processes able to scale and adapt to the changing demands of the market and the requirements of digital transformation in banking? As banking and financial services sectors race to keep up with innovation and disruption, your organisation’s ability to scale and flex becomes a key factor in ensuring long-term success.
A core banking capability assessment addresses these attributes and is crucial for future-proofing the bank’s operations.
Regulatory compliance
The regulatory framework for banking and financial services is in constant flux, responding to innovations, opportunities and risks that arise during this exciting time for banking in Australia and globally.
A core banking assessment considers the need to remain responsive in the face of regulatory changes, meeting current regulatory requirements while remaining flexible enough to respond.
Informed decision-making
Whether developing a digital transformation roadmap, deciding on large-scale digital transformation or identifying small, high priority changes, informed decision making is only possible if you know what you’re working with and what’s possible.
A core banking platform capability assessment gives you a comprehensive understanding of the existing system’s capabilities, so you are able to make informed decisions about priorities for upgrades, replacements, or enhancements.
Future-proofing
As a blanket term, future-proofing identifies opportunities to incorporate emerging technologies, ensuring the bank remains relevant and can quickly adapt to future banking trends.
In the ever-evolving landscape of the banking sector, the core banking platform plays a pivotal role in the success and sustainability of financial institutions. As technology continues to advance and consumer expectations shift, banks are compelled to reassess their core banking systems to stay competitive and relevant in the market. In this article, we delve into the critical importance of conducting assessments of core banking technology and processes, drawing insights from various sources and industry trends.
How 9Yards banking technology consulting can help
At 9Yards, we understand the critical role of core banking technology and processes in driving business success. With our extensive team of digital transformation consultants and core banking experts, we offer tailored solutions to help banks navigate the complexities of digital transformation in banking and stay ahead of the curve.
Core banking assessments are a foundation service for 9Yards, providing insights and information to ensure strategic alignment, operational efficiency, risk management, customer satisfaction, competitive positioning, scalability, regulatory compliance and systems that can respond effectively to whatever this year brings.
Contact our expert team now and start the journey to optimising your technology investments, mitigating risks, and capitalising on emerging opportunities in the rapidly evolving banking landscape.
