Next-generation software for banks

Banking software solutions are digital tools used by banks, financial institutions, and credit unions to optimise their operations and undergo digital transformation. They include functionalities that help professionals in various areas such as account management, loan origination and monitoring, transaction monitoring, risk assessment, customer support, payment processing, transaction processing, etc. From handling routine transactions to conducting intricate financial computations and reporting, banking software solutions help significantly streamline processes and tasks, ultimately enhancing profitability by reducing operational costs.

Banking software solutions are often modular, and are made available in different ways, ranging from subscription-based services to white-label on-premise solutions, each offering different pricing models. Generally speaking, they can seamlessly integrate into various startup, fintech, cloud-based SaaS, or CRM solutions, ensuring a smooth user experience.

Several types of banking software cater to different aspects of banking operations. Here are some common types:

• Core banking software: This type of software manages core banking functions like account management, deposits, withdrawals, and transactions.
• Loan origination software: Designed to streamline the loan application, approval, and disbursal process, this software helps banks and financial institutions manage lending operations efficiently.
• Transaction monitoring software: Used for monitoring and analysing transactions in real-time to detect and prevent financial crimes and ensure compliance with regulatory requirements.
• Risk management software: Helps banks assess and manage various types of risks, including credit risk, market risk, and operational risk.
• Customer relationship management (CRM) software: Facilitates managing customer interactions, tracking customer preferences, and improving customer service and retention.
• Wealth management software: Enables financial institutions to manage and automate investment portfolios, financial planning, and advisory services for high-net-worth individuals and institutional clients.
• Compliance software: Assists banks in ensuring compliance with various regulatory requirements and standards, such as KYC (Know Your Customer), AML (Anti-Money Laundering) and authentication regulations.
• Mobile and online banking software: Provides customers with access to banking services through mobile apps and online platforms, offering features like account access, bill payments, fund transfers, and remote deposit capture.

Core banking refers to the backend infrastructure usually provided by core banking system providers, such as Temenos or Oracle. These systems are responsible for managing banking operations and services across multiple branches within banks and financial institutions. Core banking software solutions handle operations related to tasks such as onboarding and opening new accounts, managing loans, handling deposits and withdrawals, calculating interest, and conducting customer relationship management activities in the banking industry. Core banking solutions assist users, both in retail banking and corporate banking, in performing these tasks.