The term core banking (Centralized Online Real-Time Exchange) ensures synchronization among network bank branches. They are integrated with a centralized server that enables the processing of data in real-time. It allows customers to access their bank account details and perform basic transactions from any branch offices. Core banking functionalities include loans, mortgages, transactions, and payments which were traditionally available through ATM or branches. But core banking software development along with network technology enables a bank to centralize its record-keeping while providing access to the bank account transactions from any location.
Why Build Core Banking Software?
The banking system around the globe had been witnessing a positive beam for the past few years having stable ratings across most countries. It was progressing and preparing for the next wave of blockchain technology and AI-backed technologies as its central point.
However, the sudden rise of the COVID-19 pandemic that resulted in complete lockdown entirely changed the concept of businesses, banking and everything else globally. It threw the banking sector into the spotlight persisting it to adapt digitization overnight.
This epidemic has become the turning point for the banking sector and its customers. The rising omnipresence of digital devices has put the powers in the hands of the end customers. Therefore, making customer experience paramount across all the industries where banking is no exception too. Some of the banks or financial organizations have realized the urgency of developing meaningful banking experiences.
Goals of Core Banking Software System
The Core Banking Software System works towards improving customer experience. It assures customer’s comfort and satisfaction while enabling banking anytime and anywhere. With the implementation of technology, different approaches have been discovered to ease out all the services and software development is one of those discoveries as well. It offers essential functions like keeping track of deposits, transfers, ledgers, customer details, loan accounts, and so much more that were once carried out manually.
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The multiple operations of core banking software allow the bank to store information in the correct format. Moreover, all the stored information can be obtained efficiently through an authentication mechanism. With the facts and statistics, this modern tech helps employees and clients to make intelligent decisions. It also helps to produce and offer legislative and regulatory reports to the government regulators.
Primary Features & Functionality of Core Banking Software
Some of the top features that a core banking software must have are security alerts, chatbot integrations, bank account management, multi-currency feature, ATM finder, QR based payments and much more.
Let’s dig a bit deeper into these features.
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Security Alerts
Protection and confidentiality are the two main factors for banking software. It’s essential for the banks to ensure that their systems are safe and the information stored is secured. Some of the apps also have features like touch ID or voice or face recognition for enhanced security. So, developers ensure to make a system that detects any fraudulent activity and send security alerts to both the bank and the customer.
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Chatbot Integrations
It’s important to provide 24/7 support to the customers who need guidance while using the web app or banking software. Here, the best choice for you will be AI chatbot integration that will easily address hundreds of clients at the same time instantly. Needless to say, they can run for hours and will never get exhausted.
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Bank Account Management
Another essential feature to include in your core banking software solution is bank account management. Users should be able to track their accounts and other banking information like deposits, withdrawals, and transaction history. Not only that, but they should also be able to make transactions through the application.
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Multi-Currency Availability
To promote the concept of multicultural banking, an ideal core banking system should be multilingual, that is, setting up different currencies, choosing their base currency, accounting for the base and multiple currencies.
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QR Payments
One of the features that have become a fintech trend - QR pay, must be indulged in your banking software for the ease of scan pay directly from their web application.
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Mobile Deposit
It might sound like sci-fi material to some individuals who still banks conventionally, but mobile deposit or remote deposit control has become the most popular features of core banking software. It will require scanning and transmitting a picture of a check to a banking organization which saves a lot of customer’s time.
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A Few More Functions
Other than that there are a few features that you can integrate into your software are Interest Rate Calculator, Loan Processing, Advanced Analytics and Payment History.
How Much Does It Cost to Develop a Core Banking App?
Developing a core banking software can cost $200,000 to $500,000. However, development costs are unpredictable during the earlier stages of development. A few factors affecting its cost entails vendor type, location, complexity, the number of features, back-end infrastructure, connected APIs, the complexity of UX/UI design, development approach, the inclusion of additional branded visual elements and so on.
Overall, the performance of your software is influenced by the front-end or design of the application with some unbeatable innovative features. It will also help a bank gain new clients, build a positive consumer experience and competitive benefits.
If you are interested in the development of core banking software or have any questions regarding the one, don’t hesitate to contact us.