A cloud core banking system provides a number of advantages for banks. It allows them to reduce operational costs and stay competitive by allowing for rapid deployment of new services. In addition, it offers increased security and scalability.
Skaleet SaaS Core Banking Platform empowers financial institutions for perpetual evolution and enables them to quickly launch innovative, flexible and scalable financial services. It also gives them the technological capabilities to meet the clients’ expectations.
Continuous Evolution
The ability of financial institutions to evolve continuously using the Skaleet Cloud Banking Platform enables them to quickly develop and launch new capabilities. This enables them to respond to customer feedback and create more relevant products. It also helps them improve their competitive position and future-proof their business.
Financial institution core systems handle a huge volume of transactions and interface with dozens of other systems. They are expected to function without interruption, as prolonged downtime invites regulatory scrutiny, customer opprobrium and significant revenue loss. Because of this, many banks are comfortable with their functionally robust and well-established legacy systems.
However, next-gen cloud-based core systems are rapidly trying to become natural alternatives to traditional core systems. Banks that want to take advantage of this trend should start laying the groundwork now for an at-scale migration to a next-gen core system, while not neglecting tactical modernization. They can do this by leveraging a shared legacy approach and implementing next-gen digital core capabilities in small steps.
Scalability
A cloud core banking system is a critical component of today’s online banking, streamlining account management and transaction processes. These systems use centralized servers that handle everything from data processing to authentication, ensuring consistent service and efficient operations. The technology also allows banks to network their internal business process management systems and solutions with expert third-party services.
These systems offer scalability and agility to support growth and meet new demands. They foster real-time processing and personalized experiences, which are essential in meeting customer expectations. They also enable financial institutions to compete effectively and build loyalty by offering innovative digital experiences.
Using a cloud-native core banking solution is a good way to increase scalability. However, it’s important to do this in a structured manner. It’s best to evaluate the problem dispassionately and with a clear understanding of the business risks. It’s also important to avoid taking a myopic view of the issue and make sure that decision-makers understand the implications of a core banking system problem.
Flexibility
Unlike legacy core banking systems that are built for reliability rather than flexibility, next-gen platforms offer high levels of agility, allowing banks to stitch together new products and partnerships quickly and launch them in markets and for specific consumer uses. These capabilities are critical for boosting innovation, optimizing operating costs and providing consumers with the best possible service.
The challenge for many banks is how to transform their existing stacks, which are often a hodgepodge of overlapping and conflicting software and infrastructure. These include channels, customer-relationship management systems, data architecture, risk systems and middleware. It is a complex task and entails significant investment.
One option is to buy a new generation platform and host it with a cloud provider that offers security, quality, and data sovereignty. For example, Skaleet Cloud Banking Platform is hosted with OVHcloud, which ensures the highest level of service while meeting regulations. Other options include building an in-house solution, which offers advantages such as higher customization and the ability to add fully customized services.
Security
A cloud core banking system provides a host of benefits to banks and their customers. It allows them to automate their processes and implement new services in a shorter time frame, enhance productivity and reduce costs. But these advantages are not possible without adequate security measures in place.
The key to securing a bank’s cloud infrastructure is encryption. This ensures that data at rest and in transit remains secure against hacking and data theft. It also ensures that the system can only be accessed by authorized personnel. Additionally, banks should conduct periodic audits and compliance checks to monitor and safeguard their systems against cyber attacks.
Additionally, banks should adopt technologies like AI, ML and blockchain tech to boost their security measures. This can help them detect threats faster and prevent future breaches. It can also propel them into a future of secure, efficient and innovative banking. This can be facilitated by partnering with a reliable technology company, such as Avenga.