Have you outgrown your core’s Digital Banking Platform?

March 25, 2020 by Apiture

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Digital Banking Platform

If you can’t do these things, it’s time for a change.

Banks and credit unions rely on technical services to keep their business, and the users that in turn rely on them, running. At the onset of digital transformation in the financial industry, the first providers of these new technical services were banking cores. Cores are the back-end system that is responsible for processing and posting financial transactions, accounts and records. At the time, it made sense to wrap technical services together with a financial institution’s core; cores themselves are highly technical and buying digital features from a third-party didn’t make much sense in terms of development and implementation time, along with cost.

Outdated & Overwrapped Tech

Over time, however, these rigid core systems have wrapped themselves too tightly – and outdated core technology has only complicated and limited the growth and adaptability of digital banking. It’s why the financial industry is undergoing such a disruptive period – where FinTechs and other non-financial companies are taking users away from traditional banks and credit unions in droves. Many cores operate on the technology of the 1980’s, and while they have continued to develop and provide innovative services, they are unable to keep up with next-gen technology.

Core Limitations

The limitations of core providers and their digital banking offerings may never catch up to the fast-paced digital revolution. Banks and credit unions are now having to ask themselves if a core’s digital banking platform is going to keep their customers and members from leaving and what costs could they incur to implement a third-party.

Whatever the case, banks and credit unions can arm themselves with information on how to meet the demand for better digital offerings. There are vendors and tools that exist to serve banks and credit unions – and to make certain that they are ready for the next best thing in digital banking without barriers. While these tools vary across the industry, as few key guidelines can help banks and credit unions evaluate and guide where they need to be.

Harness data to market to your current customers

We live in a data-driven universe. Your 300+ million customers and members, and their activities pave your means to growth. The amount of data and insights you can analyze and segment as an institution is almost innumerable.

The problem most banks and credit unions face, is that their data lives in inaccessible, manual reports that can’t be analyzed in real time, never mind using data to develop segmented campaigns. Most banks and credit unions operate where this type of analysis is heavily time and labor sensitive, and the results of any identified opportunities are lackluster.

You can take charge of your institution’s data.

Many tools and software’s exist to empower banks and credit unions to use their own user’s data to develop new ways to grow. It’s why 65% of institutions wish they could do a better job establishing marketing ROI. With every transaction, transfer, new account, linked account and more – your users are leaving trails of data for you to utilize and meet them with new opportunities.

Dominant financial service providers and institutions have joined forces to create a standard for data, so that growth of the industry with regards to user data can remain standardized and secure. The Financial Data Exchange will help your institution work with other industry providers to get a better vision of your customers and members.

Power In Data

When institutions recognize that there is power in data, a bigger picture for growth emerges. Banks and credit unions who support external accounts can observe key trends and competitive intelligence.  For example: your institution might recognize that many users have an external account home mortgage with a consistent competitor, and you can run a campaign with lower mortgage interest rates that will display directly on your segmented user interfaces when they log in to their account.

“Think of it as attaching a little GPS to the digital footprint of every customer to see how they move through your digital world to figure out the next-best offer.”

Targeted Insights

These types of real-time data analyses tools are available and are automatic. With these tools, your decision-makers can immediately deploy visualizations and interactive reporting of more than 100 measures such as interest rate, mobile engagement, account types and more.

If your institution isn’t already utilizing your data, your competitors are beating you to the punch.

Use digital channels to acquire new customer

It’s no longer enough for financial institutions to offer online banking. Your users need your institution to be available on their phone, smart watch, in their car, on their smart home devices and more. Your institution is expected to deliver when new technologies are developed, and any lapse is an invitation for your customers to find another solution.

Traditional core providers are slow to respond to emergent digital offerings with full capability; meaning your institution is held back and can’t do anything but watch as your customers and members find an institution that can keep up.

Your users don’t even have to leave their couch to get a loan, and it’s not from you.

Getting a mobile app to view transactions isn’t enough. Companies like Meridian Link ®, developer of the industry’s first multi-channel loan and new account origination platform, have recognized the user’s need to have an end-to-end digital experience when it comes to opening new accounts, applying for and completing the loan process.

And, if you don’t have a person-to-person payment system, your customers and members are opening Venmo and PayPal accounts to split the bill at dinner, send money to a contractor buy a car.

Placement & Pertinence

If you don’t have insights from your user activity, nor any online loan application, your student loans are going to companies like GradFin and Sofi.

Everywhere financial institutions are turning, new FinTechs are there poised to take action. Meet your customers where they expect you to be, and they won’t need to leave your platform to find their own solution.

Serve consumers & business from one platform

Primarily, When it comes to traditional digital banking platforms, consumer and business users are segmented, leading to user frustration when banking between their various accounts – and making additional processes to slow your institution down. By housing your retail and commercial users under one platform, you reduce the frustration that can lead users away from your institution for one type of account, or both.

In an interview Bottomline Technologies’ Digital Banking managing director spoke of the rise of intelligent engagement in business banking as a transition from systems of record to systems of engagement. This transition pins business customers with the same needs as consumers: a highly reactive and omni-channel banking experience.

Additionally, In a direct bank experience, one platform serves both consumer and business users under a platform service, one which utilizes APIs to bring the best players to the table, so the end users have an ecosystem of partners, and high reliability.

Remember that mobile comes first

All channels are important and can draw customers from your institution; but mobile banking is a requirement for institutions to stay alive and grow. Mobile-dominant banking is on the upswing, with 5% growth in just a year.

In addition, 83% of Business Insider respondents said they use mobile banking and the market appears to be reaching saturation – where it is no longer a question of “if” people are using mobile banking, but the conversation shifts to “how” are people using mobile banking.

More Than An App

The experience is not satisfied by having an app icon and regurgitated, and possibly less robust version, of your website for your users. As such, your web and mobile experience should be tied as one experience however the mobile experience should capitalize on the mobile functions your customers and members expect.

  • Mobile check deposit
  • Biometric login
  • Person-to-person transfers
  • New account opening
  • Loan applications
  • Customer Service direct messaging
  • Tracked user budgeting
Mobile First Mentality

Without an immediate mobile experience, your next move will be to the app store to find a fintech or institution that will let them complete their action right from their phone.

In actuality, your customers want you to meet them where they are, you have the tools to make changes in your institution, retain your customers, improve their service, and contribute to a legacy of growth.

It’s time to take control of your digital platform

Want to learn more about frustration-free digital platforms? www.apiture.com