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Core Banking Software Solutions India

Category: Banking Technology

Top 5 reasons why real-time banking is the key

The banking landscape is undergoing a transitional phase since past few years. Consequently, they have been facing infrastructural, compliance, competitive and economic challenges. One of the ‘buzz’ words in the banking and finance industry today is “real-time banking”.

real-time banking

Financial institutions have been constantly looking out for solutions that may add to the efficiency but also significantly reduce the costs. A Core Banking Solution (CBS) for real-time banking if adopted to its full potential, can help banks with faster, accurate and convenient processes to manage their operations.

Discussed in this blog are top 5 reasons for banks to upgrade to real-time banking. But, before we proceed, check out these statistics highlighting the popularity of real-time banking, particularly real-time payments, across the globe.

real-time-payment

1. Customer experience

According to a research by DBR Research, it was identified that many financial organisations do not have a customer experience plan. Only 40% of financial institutions agreed to have a formal plan implemented.

financial organisations

Many of us can relate to terms like downtime, maintenance schedules and cut-off times. Such events only hamper the customer experience by limiting the capabilities of technology and banking.

A real-time core banking system keeps consumer preferences on priority and empowers users to avail banking facilities during odd hours, round-the-clock – anytime, anywhere!

2. Integration across channels

As per the recent trends, banks have added multiple channels on which the daily banking operations can be performed. While they are sophisticated and complete in themselves, they can be referred essentially as standalone systems which are structured to execute a set of functionalities.

Real-time banking syncs multiple channels and integrates all standalone applications to give it a centralized view, thereby eliminating confusion.

3. Manage Frauds

Banks have always been concerned about the number of frauds reported with them. The statistics below depict the number of bank frauds and the amount involved in India, in between 2012 to 2014.

banking industry comparison

Real-time methodology provides banks with business intelligence systems that can aggregate transaction patterns of users and detect fraudulent activities as and when they occur.

4. Efficient back-office operations

back-office operations in banks

Many banks use legacy systems, which work on outdated processes that may not integrate with existing methods. Processes involved in staffing, employee benefits, transportation etc. require banks to input a handsome amount of cost and time. Real-time systems can help get rid of manual intervention in back-office processing, thereby minimising errors, reducing the turnaround time and enhancing productivity.

Real-time core banking also frees the systems involved in day-long (or hour-long) batch processes. They can then be utilised for executing processes that are more fruitful to the business.

5. Risks and compliances

The regulatory bodies may introduce new guidelines which must be implemented and practiced instantaneously. Governance and risk compliance becomes a priority when the credit market is tight.

Only a real-time system can offer risk management solutions for all their critical operations for operational, credit and market risk.

Few banks have already started availing the benefits of real-time banking, however, there are many who are yet to advance to this technology. In today’s micro-dynamic environment, banks must consider focusing on every approach that can aid them to secure their stake in the market. This includes taking a substantial step in embracing CBS for real-time banking.

It is the time that banks work together with other financial institutions and non-banks to redefine the current scenario and frame a backbone that revolutionises “banking” for all customers.

BeaconPro, by Sesame is a comprehensive, browser-based and centralized core banking solution that offers full capabilities of real-time banking. To avail its features for FREE, schedule a demo today!

5 most anticipated and emerging Banking Technology trends

 

FinTech

Banking Technology Trends

When we look at how technology is transforming Banks today, we can clearly predict the move towards the greater adoption of the latest innovations.

This is the age of digitization and technology is playing a crucial role in shaping India’s Banking scenario. Looking at the state of technology in India and of the world at large, with the extensive availability of 3G and 4G networks and the spread of smartphones, it is creating newer and enhanced customer expectations, multi-feature product offerings and a greater demand for state of the art FinTech solutions.

Today Banks have much greater onus of welcoming proactive technological transformations. They have to bring in these changes because now they need to make themselves available anytime and anywhere to their customers, to stay alive in this highly competitive market.  What is interesting is the fact that these factors that are influencing banking today are the same factors serving as a basis for all the latest emerging trends.

Let us have a look at the anticipated technology trends we think will be significant in the world of Banking.

FinTech Disruption

We are aware that the Electronic exchanges, and the standardized application systems have driven the transformation of financial value chains. There is no doubt whatsoever in stating that the most significant development recently in the financial industry is none other than “Financial Technology” (FinTech). It comprises a broad range of innovations and advanced business models powered by information technology. FinTech is so phenomenal that it is shaping policies and creating a global-scale trend. The areas where the FinTech disruption will be strongly felt are fund transfers, consumer banking and wealth management. A highly impactful combination of alternative credit models with powerful data analytics will transform innovations in lending.

Distributed ledgers to authenticate IOT devices

Distributed ledgers, more commonly known as Blockchains have already become a major technological innovation. Now, leverage this technology to authenticate IOT devices, we can see a real-time system for value exchange. The exciting part would be that it is almost free. Internet of Things can be the future of distributed ledgers in financial services. Major Banks will lead the way by revising standards to pave way for the transformations. We may see signs of such a change starting thing year. The next five years will prove to be the defining moment for this transformation.

Impact of Big Data Solutions

With banks requiring deeper understanding of customer needs for competitive advantage, they are now betting on analyzing the ever-increasing volumes of data, to get right into their customer’s psyche. They are quite right in doing so. Big Data in banks have the tremendous capability of maximizing the value of their customer data by leveraging big data analytics across the key areas such as marketshare growth, customer retention etc. Lead generation for customer acquisition can be effectively improved. Various analyses help enhance Customer experience, engagement and loyalty, leading to much better sales and profits. However, considering the great things Big Data can offer, Banks are not utilizing its true power, at least not yet. It is high time that Banks start tapping the immense potential of Big Data Analytics. Probably this may be the year for successful big data initiatives that will go on to define the future.

Advanced Security Systems

The major problem with technological advancement is that Banks are now forced to fend off more number of advanced and complicated security threats. There is an unprecedented number of data breaches and an increased risk of cyber threats. With an increase in digitization, multi-channel proliferation there is greater risk of cyber-attacks that can translate into frauds and ultimately loss of customer’s trust. Realizing how crucial the situation is, Banks are stepping up the security. We now see more banks using biometrics and tokenization for banking activities. With digital channels slowly becoming the most preferred choice of customers for Banking services we will see increased security measures such as multilayered authentications. Going forward, we will see more banks adopting secure access methods without compromising customer convenience.

Financial Inclusion through Business Correspondent Solution

Rapid increase in the number of smart phones and decreased cost of electronic hardware such as Point of Transaction (POT) machines, have made offering financial services to the poor a much easier task these days. Business Correspondent Model is a modern, innovative banking approach that helps to service the financial needs of the unbanked sectors leveraging the latest technology devices.

Financial Inclusion Business Correspondent (FIBC) Solutions extend banking practices of the premises embedded on next -gen gadgets like tablets and smart phones. These solutions offer all the necessary BC Model features for helping people meet their financial needs and strengthen bank’s business. The solution facilitates technologies like Micro ATMs that allow customers to perform the basic financial transactions by using customer’s ATM card or thumb reading (Biometric). Seamlessly integrating the Card-Swiping machines to a Tablet at any location with connectivity, now FIBC solutions can provide easy to use technology to any individual.

Since Banks are now shifting their focus to improve Financial Inclusion, for customer engagement and to grow their business, a low cost, technology based, innovative service delivery mechanism such as FIBC looks increasingly viable. We might see more Banks adopting this model so that they can offer lower-cost structures by leveraging digital technologies.

Let us sum up our predictions for the year 2016: Banks are expected to create greater room for digital innovations to rise above heavy competition. They will have to accept the FinTech Disruptions by adopting them smoothly and seamlessly, and they may even have to start looking for partnering with FinTech firms.  Though IOT and Blockchains together looks new and untested, you never know what is in store, let us wait and see.  With Financial Inclusion gaining limelight in government agendas, Banks may start looking for low cost technology based options to service the underserved and even make a considerable profit.  Finally, banks will have to step up their game to offer enhanced security to protect and distance themselves from cyber-attacks and yet continue providing better customer experience.

 

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