Digital core banking platforms are banking technologies that provides access to all of the traditional core banking activities and services via the digital platforms.
The digital core banking platforms ensure that customers have access to all of the banking services at any point, irrespective of the time, location, and other variables that otherwise limit such a convenience.
The difference between traditional core banking and digital core banking platforms are the medium through which banking services are provided.
In the traditional core banking, a customer had to visit a physical branch of a bank for even simple banking tasks such as ordering checkbooks or check deposits while the digital core banking platforms allows customers to complete such tasks online. Customers can carry out everyday financial transactions from the comfort of their home or the office without having to visit the bank.
Benefits of Digital Core Banking Platforms
The core banking systems are the computer enabled back end activities of a bank that processes daily banking transactions and updates the accounts accordingly. The types of core banking systems typically include deposits, withdrawals, check processing, cash transfers, business loan and credit processing, business credit card and debit card management along with a host of other important activities.
The digital core banking platforms offer a myriad of benefits. These key benefits of digital core banking platforms make the whole process of digital transformation absolutely amazing. They include:
1. Make customer onboarding easy
Onboarding is the process of banks embarking on a new relationship with their clients. It has several steps to gather essential information on the client and perform regulatory, legal, and credit-related due diligence with identity checks.
This process includes Know Your Customer (KYC) procedures, data collecting, identification checks, document collection, and, on occasion, face-to-face interviews with prospective clients. The onboarding process must be completed before a new client may open an account or conduct business with the bank.
In a traditional banking scenario, customer onboarding is one of the most cumbersome tasks. The benefits of digital core banking platforms is to make the process of customer onboarding extremely easy. There is no hassle of endless paperwork and multiple verifications; the entire process is digitized.
2. Digital day-to-day cash transactions
Other benefits of digital core banking platforms is how it enabled the day-to-day cash transactions such as deposits, withdrawals, and transfers to be processed digitally without any in-person contact. This makes the mundane banking activities safe and efficient. This also includes other banking activities such as bill payments, credit card payments, and online retail transactions.
3. Make data management seamless
Data migration and data management are two of the most critical aspects of the banking sector. Core banking platforms make data management both manageable and seamless. Consolidated information that showcases customer data, business data, and transactional data can help the bank make important decisions. Accurate data management can help a bank recommend the right financial products to its customers. Business and transactional data can help banks evaluate growth strategies and launch new products that benefit their customers.
4. Provides top-notch security integration
As banking activities continue to migrate online, money mismanagement and fraudulent transactions may occur occasionally. One of the key benefits of digital core banking platforms is the top-notch security integration it provided across all the verticals of a bank. An advanced security such as dual authentication processes and digital identity management ensure tight security to both the banks and their customers.
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