Finding the core processing solution that best fits your bank’s strategy and individual needs is critical to remaining competitive and profitable in the changing digital world. And while it’s your search team’s responsibility to make recommendations, as a bank executive, you shouldn’t make a decision on selecting a core provider until you ask yourself:
- Can you configure it to meet your needs?
- Does it have the basic business functions to support a customer-centric banking environment?
If you can answer yes, you’re on the right track. But, our best advice on narrowing down your options is to first evaluate the broad system characteristics, then look at specific applications. This includes understanding the technology must-haves imperative to support your strategy.
3 Core Technology Must-Haves
These are just a few of the elements bank technology experts find critical for competing in today’s financial environment. So, make sure the core system you choose offers these features:
- Component-Based Architecture
A component-based architecture gives your bank the opportunity to add new applications, as they’re available, without updating the entire solution. It’s also important to choose a provider that offers a wide range of fully integrated tools and applications, like mobile apps, CRM and business intelligence products, which help your bank attract new customers and compete in a changing marketplace.
- Built-In Compliance Tools
The core system should aid in regulatory compliance. For example, it should have alerts and automation to help you respond to changing regulatory requirements without eroding efficiency. The best core solutions are also the ones regulatory auditors embrace, because these tools give them the transparency they need to make sure institutions are strictly following compliance guidelines.
- Enterprisewide Security
Hosted solutions should have an enterprisewide security framework in place, not just safeguards around individual parts of the system. And having these standards in place is more important today than ever as fraud and the sophistication of attacks continue to accelerate.
Use this list to evaluate core banking systems on their broader characteristics, so you can determine if they have the technological capacity to support the specific applications your bank needs for success. These are only a few of the technology must-haves you need in a core provider.
For more essential technology components, check out CSI’s Definitive Guide to Selecting a Core Processing Partner, which breaks down the technology trends and best practices leading the banking industry today.