Does your company need a digital platform to provide financial products and services to its clients? Building a core banking system is a challenge, and many businesses make missteps that put their projects in jeopardy. Discover the building blocks of new-generation solutions.
Successful digital products in the financial sector ensure quick and easy transfers of money. However, the core banking system, despite its complexity, does not have to be created from scratch. To scale your business more quickly and easily, you could take advantage of white label solutions. Whatever your approach, the following four steps will be essential.
1. Forget the Old Systems
Breakaway from the legacy of the previous CBS generations. Today, these systems are largely obsolete. They are an obstacle to your path to innovation. Companies that want to outpace the competition must start from a clean slate. Financial institutions need a forward-thinking architecture that will evolve to meet their clients’ needs in the future.
2. Define the Components of the CBS
Banks are expected to do more than keep their clients’ money and information safe. While cyber protection is still a priority, consumers expect an unprecedented level of flexibility and personalization. This requires the implementation of an agile CBS that can adapt to different technologies.
Begin by identifying the parameters of the system and its elements. Focus on a modular architecture, so you can make changes in the future more easily. Define the features you want to support, like bank cards, KYC verification, savings accounts, reporting tools, etc.
3. Pick the Right Ecosystem
Your app or platform must have different API integrations (Enterprise APIs, customer APIs, distributor APIs), so consider these microservices carefully to pick the right ones. Despite the need to start from scratch, you do not have to reinvent the wheel. Your company may outsource the entire CBS or some of its components to reliable tech vendors. This will help you save time and resources and also get the system built more quickly.
4. Plan Every Detail
Transitioning to a new CBS is an important technological breakthrough, but it must not impede your day-to-day operations and communication with partners and clients. Plan meticulously. Consider the methods and timing involved in the switch from the old architecture to the new one.
The launch must not create disruptions for your clients, and data migration is its crucial element. This transition is your opportunity to streamline, declutter and unify databases. To cut costs, move your data to the cloud. Preserve the existing information and integrate new data.
Following these tips will help you strategically position your institution in the best way. Creating and implementing an innovative CBS is a complex endeavor. Make the transition to join the global digital revolution. Outshine your competition by offering flexible, personalized, and responsive services that make your clients’ lives better.