At The Core of Financial Services: The Importance of Digital Core Systems

At recent events we have been amazed by the reaction to three simple words: core banking system.

For some payment and alternative finance start-ups it was a new concept. For bankers it conjured images of Cobol programming pensioners in a dusty basement. Three competitors privately admitted they had stopped investing in this segment.

Why then are we investing in, and growing, our solution Union.core?

 

10 Commandments of Core
Quite simply, the breadth and depth of functionality provided by a core system make it the go-to architecture for any financial service provider:

Function
Client record management
Customer messaging
Product configuration
Role configuration
Integrated documents
Payments
End-of-Day processes
Management reporting
General ledger accounting
Audit trail
Benefit
> all client data, transactions and relationships in a single place
> service and sell in real-time, 24/7/365
> standardised, centralised approach reduces operational risk
> define and control what employees see and do
> view KYC and contracts for each client
> automate transaction origination and settlement
> automate key calculations and processes
> individual entity and consolidated enterprise reporting
> automate accounting to ensure accurate data and valuation
> every client, transaction and user click is logged

 

 

 

 

 

 

 

 

We say any financial provider because even FinTech’s, who possess a clever piece of the value chain, require something more substantial to automate end-to-end processes and satisfy regulatory requirements. As illustrated here the FinTech and core system interact using a simple API layer, enabling a straight through process.

 

Not All Are Created Equal
Perhaps confusion arises from the fact that many Banks persevere on legacy infrastructure – it is not easy to fix the engine while driving at 100mph with clients, competitors and regulators constantly changing lane!

Digital core systems are a different breed however, here is what it means to us:

Feature
Universal solution
Multi-channel delivery
Client centric structure
Open architecture
Modular architecture
Agile architecture
Straight through processing
Real-time
Cloud enabled
Bottom line impact
Corporate agility
Benefit
> eliminate silos and analyse data on an entity and consolidated Enterprise basis
> service and sell consistently through all channels 24/7/365
> everything is related to the client, making KYC and profitability analysis easy
> interface freely and securely with other systems
> pay only for what you require
> customise to your exact requirement, scale quickly and adapt easily
> create processes efficiencies and lower operational risk
> transactions and applications work simultaneously and in real-time
> host yourself or use our managed service
> increase revenue from better client engagement whilst reducing Opex
> adapt for new products and markets, implement quickly to improve time to market

 

 

 

 

 

 

 

 

 

Leaders in digital transformation are reaping huge benefits. Providing quality service 24/7/365 and relevant, understandable offerings deepens client relationships. Internally it becomes easier to optimise processes, develop new capabilities and improve decision making.

 

All About Data Monetisation
This isn’t about early mover advantage however, digital will alter the basis of competition forever (as we have seen in other industries already). Next generation analytics will create real-time intelligence which will support the monetisation of the data, allowing exponents to serve their clients and shareholders even better. Only one system can deliver the agility and cost effectiveness required today and the data required for tomorrow, a digital core system.

 

To learn more about Union.core please visit our Case Studies or Contact Us

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