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Before a decade or two, the Banking activities were time-consuming and tedious. Customers had to personally visit the banks and stand in long queues. These visits had to be done during their working hours because the bank’s working hours were also the same. This caused inconvenience to the customers who were short of time, especially the service class people.
Digital Core Banking Systems
With the advent of the digital core banking system, everything became quick and is now just a click away. Digital banking refers to the digitalization of all activities, transactions, and operations of the banks. It helps customers to have access to bank services at any point at any given time. This is possible because Banking can be done through various digital core banking platforms. Bank facilities can be accessed 24×7 without worrying about working hours, holidays, or long queues at the bank.
With the digitalization of the core banking system, one can enjoy a paperless banking experience. One need not worry about keeping a track of the transactions or banking history, all the details can be accessed at customers’ convenience. Digital core banking can be accessed through various devices such as mobile phones, tablets, or laptops.
Core Banking System Features
Some of the significant features of the digital core banking system are as follows:
Out of our country’s total population, a majority of them are Millennials who prefer to perform banking transactions and other financial activities online. With their constantly changing requirements, banks need to be ready with the necessary functionality. A digital core banking software helps in customization of the products to fulfill their customer’s needs. It helps in decreasing the operational time, enhance productivity, channelize the efforts, and most importantly cater to maximum customers quickly and swiftly.
From online funds transfer, application for loans and credit cards, opening new savings/current accounts, applying for insurance, mutual funds to other banking activities such as deposits and withdrawals everything is at the fingertips of the customers.
The customers can easily check their bank records and transactions anytime and from anywhere. Since the transaction history is easily available online, customers can keep a tab of their transactions and any unauthorized transactions. They can also easily raise a complaint if they see any fraudulent proceedings. One can go paperless and opt for monthly statements. With internet banking, money transfer is quick and hassle-free. All these facilities can be accessed around the clock.
3. Mobile Banking
Mobile banking is an important part of core banking technology. With internet facilities available at cheap rates, banks have been at the forefront to provide digital services through mobile phones. Today the majority of the population have smartphones and mobile app is amongst the most trending for banking activities. A Mobile app is useful for transactions like money transfer, making bill payments, credit card payments, and mobile recharges, etc. from the comfort of their home or work. Transactions can be made through mobile wallets, digital payment modes, and UPI transfers (eg: BHIM app), etc. Google Pay and Paytm are online payment platforms that are quick, convenient, and just a click away, thus the most preferred ones.
4. Online Payment
Standing in long queues to pay bills can be tedious. But with online banking, payments can be made with just a click. One can opt for automatic payments and standing instructions to avoid due date reminders and late fee charges. This works great for insurance, and SIPs, EMI payments, etc. where the amount is the same every month. This facility saves time and makes digital cash management easy and efficient.
Core banking system architecture allows for repetitive and mundane banking activities are now automated. This has eliminated the need for manual work, thus enhancing efficiency and accuracy. The automation has led employees to focus on more productive and strategic tasks and increased overall efficiency. The digital core banking system has decreased operational costs and operational time to a great extent. This benefit is passed on to the customers by banks charging lower fees for their services and leading to customer satisfaction.
Cloud Banking is a technology used for storing and accessing data, applications, and programs over the Internet. Cloud technology helps in storing information in virtual servers controlled by cloud service providers. The data is managed centrally on cloud servers and aids in removing complexities related to the changes and increase of data. It offers banks flexibility to the ever-changing consumer needs and market needs.
Cloud banking provides security, agility, and scalability while improving its capability to handle consumer data. All these implementations help the banking industry to improve revenues, operational efficiency, and the client servicing department.
7. IT Returns
Filing Income tax returns can be quite exhausting with the amount of paperwork involved in it. But now with digital banking, filing IT returns and making tax payments has become quite an easy task. Even government challans are now paid through digital platforms.
There can be no compromise when it comes to data security and privacy of customers. Banks take all possible measures to ensure the security of their data, customers’ data and privacy. From Encrypted data, Two-factor authorization, IPIN security, Session timeout, Virtual keyboard, Insta-alerts to Security solutions every aspect is ensured for security.
In an era where customers want everything at their fingertips, embracing the digital core banking system has been the best step for banks and financial institutions. With the use of new-age digital core banking systems, banks have been able to automate operations, improve customer experience, simplify operations, and provide security at every juncture.