Scoring with Core Banking

With millions of dollars spent on them, core banking systems CBS are the heart and sinew of today’s banking. These back‐office systems process and post daily transactions to accounts and constitute the deposit, loan, and credit processing capabilities with interfaces to general ledger systems and reporting tools. As cloud, digital banking, APIs, and Big Data and AI-led solutions gain wider acceptance, Banks rely on their CBS’… That is a CV for a modern-day Superman. “Core is Forever” Today, BankTech experts consider core modernization as a continual WIP investment. With the current paradigm shifts in banking, this is justifiably so. From...

Digital entrants eroding market shares across BANKING SEGMENTS, ECOSYSTEM COLLABORATIONS REWRITING PLAYBOOKS, AND HIGHER ESG COMMITMENTS are central themes for leading FIs. Fifteen years of original McKinsey surveys report that less than one in three companies pursuing transformations in the past five years have been successful. For the few that achieve their targets, there is a disparity between performance and outcomes. While growth spirals are unique for each of the BFSI players, there is consensus around what constitutes ‘bold banking innovation’: reinvent core businesses through digital and analytics, acquire or create new revenue streams and rehaul operating models that capture...

Accelerating Next through Conscious Contextualization.  For companies – Uber, Venmo, Google, Apple Pay – to become ‘daily-use-verbs’ is like a rite of passage. It is a milestone, the ‘blue tick mark’ of customer trust and loyalty.   In today’s experience economy, this milestone is made meaningful when one considers the ominous dark clouds over banking a.k.a.  economic downturn, geopolitical instability, and soaring inflation.   CX for banks is a big deal. A Forrester study posits a 1% improvement in CX for a multichannel bank yields additional $123 Mn in revenue (for a direct bank that works out to $92 Mn)  What’s the...

Insights on Banking Technology Inspired by the Latest News, Studies & Events Stay updated with the best and brightest from the world of Banking! Chat GPT in AWM – Accelerating Next Recapping the narrative from our previous feature – BEST PRACTICES IN AWM – the strategy paying off for the Tech companies in the AWM space has the following FOUR IMPERATIVES: While composable cloud-native platforms must be constructed on a 360-degree ‘customer- ecosystem – technology’ construct [refer to below graphic], this companion piece focuses on the fourth point – recent advances in AI-intelligent systems (or specifically Chat GPT in AWM)...

Asian households with investable assets of $100,000 to $1Mn are projected to hit $4.7 Tn in 2026 from $2.7 Tn in 2021. The McKinsey report further says that for banks and wealth managers, the potential incremental revenue of $20 – $25B equals half of Asia’s industry’s revenue growth in the next three years.   History’s lesson – make bold moves and invest early – calls for an innovation mindset In sum, From harnessing the tailwinds to catapult into pole position, using the industry challenges to create opportunities will mean three growth actions:  

The many C’s of Regulatory Compliance – consumer protection, climate risk management, cryptocurrency, CRA regulatory modernization, and cybersecurity – all call for competent change management. The best suggestion is to prepare banks’ change-management processes for whatever happens because unpredictability is the norm. What is the current level of risk appetite for your institution? The first order of business will be to undertake a thorough risk assessment, keep it current, and use it to ensure that the risk assessment considers cybersecurity, BSA/AML, UDAAP, the entire product life cycle, and Fair Lending and Third Party Risk. The next logical step is to...