3 Reasons to Migrate Your Core Banking Solutions
Core banking solutions have been there for several years. This has now become a core of operations for the financial institutions in real terms. The core banking systems have underlined almost every process in the banking industry. Moreover, these are not just streamlining the daily operations, but they also define new capabilities, innovations and growth for the financial institutions.
Core banking migration is significant for the banks that strive to maintain their relevance and demand level among both the existing and the potential customers. Read more to know about core banking and the benefits of a core banking migration.
Why migrate systems?
With the global digitalization of all the existing business, the clients strive to get the highest quality of offered services, especially when it comes to payments, lending, and money transactions. The standard banking software that existed for more years since the advent of personal computers has failed to satisfy the bank’s needs and the employees who use it directly.
This is why the banks are gradually abandoning their usual software solutions favouring the most modern and fault-tolerant ones. With core banking and financial services, the banks get an opportunity to eliminate the following issues.
- Increase consumer demands
Bank customers become more demanding when it comes to service quality. They actually don't want to wait in queues, visit the offline branches without a sharp necessity and worry about data security. The modern software helps to render all these moments optional.
- Rising customer expectations
Modern banks very hardly manage to maintain their market competitiveness. To attract customers, offering old school features is not enough. Here you will have to provide something more than the others offer. Full workflow automation will help in achieving maximum operational productivity without neglecting the overall quality of work.
- Existing technical limitations
The ageing banking software is poorly adapted for scaling. In case of system breakdowns, the complete system has to stand idle, and the organization will lose the transactions and customers. This is a fair reason to get changed with the digital core banking system that can quickly process the big data and is distinguished by increased fault tolerance.
The benefits of the core banking migration
Here are the benefits of core banking migration.
- Reducing the operational and technical costs
- To keep pace with customer expectation Creating innovative financial services
- Boosting customer engagement
- Accelerating revenue growth
- Managing end-to-end operational risks and costs
- To minimize the response times achieving more flexibility and agility
- Offering new products in emerging geographies
- Establishing a schedule of continuous improvements to put the focus on increasing workflow efficiency
Three migration strategies
Generally, there are three strategies to consider for your core banking migration plan. They are,
- Big bang migration strategy: This is the most common migration strategy. It can implemented in a couple of days. As everything happens quickly in this, you need not spend extra money on the middleware and the services of IT specialist's who install it.
- Classic migration strategy: This implies that the new system is implemented gradually. The old one works until the migration is complete.
- Agile migration strategy: This is considered as best of both the strategies mentioned above. This migration strategy is suitable for large banks with tens and hundreds of applications and a decentralized data storage structure.
To keep up with the banking and the finance environment, it is essential to keep up with the most advanced IT systems. This improves the customer experience, optimizes employee workloads, reduces costs and provides perfect scaling conditions. All this is possible with the modern tech capabilities of data synchronization and improvements in fault tolerance.