Unlocking operational efficiency with a robust core banking platform

The organised banking system in India dates back to more than a century before independence and has been evolving constantly with the nationalisation of banks, establishment of banking institutions and private banks, digitization and so on. Over the last decade or so, cutting-edge technologies have empowered the banking institutions to enhance their efficiency and offer numerous user-friendly features such as embedded finance and real-time payments that have been immensely beneficial to consumers and businesses alike.

The advent of digitisation has revolutionised the banking sector with bulk of transactions going online and happening instantaneously while enabling institutions to make data-driven decisions that further enhance their efficiency and drive customer satisfaction. However, the demand for digitisation-driven processes has surpassed the core technology that most of the financial institutions currently use, resulting in a gap between the services that they deliver and the requirements of their customers.

Therefore, it is imperative that every financial institution must seek out the core solution that will enable them to deliver a consistent, user-friendly digital experience to their customers. In conversation with our editorial team, Mr.Murthy Veeraghanta, Chairman and CEO of VSoft, a leading global provider of innovative banking and payment solutions to financial institutions of all sizes, explains the significance of a strong core platform and its long term benefits to the Indian banking ecosystem.

Mr. Murthy Veeraghanta, Chairman and CEO of VSoft Technologies 

What is a core banking platform and what is its purpose?

CORE banking is a backend infrastructure system that stands for Centralised Online Real-time Environment. Its primary objective is to facilitate customers to access their accounts and perform transactions from any part of the world. It is the backbone of the banking system and shapes the efficiency of all the functions – be it deposit accounting, loan accounting, branch automation or general ledger keeping.

A sound core banking platform empowers banks, financial institutions and credit union teams to configure and launch their products successfully.

What are the features of VSoft’s core processing technology?

Wings, our core-processing platform includes a suit of robust modules that simplify and modernise core processing for banks and credit unions. It paves the way for seamless, real-time, high-volume and high-performance transactions across multiple channels resulting in a more consistent and intuitive digital banking experience. It significantly increases the operational efficiency of these institutions so that they can serve their account holders the best.

How does a strong core platform benefit the Indian banking sector in terms of day-to-day transactions?

If a customer performs a banking activity such as starting a loan application online, they should be able to complete the process without encountering any roadblocks. Or, if a customer has both retail and business accounts with a financial institution, they should be able to access both the accounts with a single sign-on. Therefore, all Indian banks need a core such as the one provided by VSoft that supports a customer-centric banking experience rather than housing information in product-specific silos.

Such a system can help boost digital engagement, increase the number of logins and offer more opportunities for expanded relationships. Banks can achieve significant operational efficiencies and reduce the cost-to-serve customers by digitally acquiring and onboarding them, optimising branch networks, automating processes such as credit underwriting and so on.

According to a study by McKinsey & Company, the top performing banks with robust core processing platforms have an average of 24 to 28 digital banking logins per customer every month and grow their revenues by 10 to 15 percent every year.

With data security being the prime concern w.r.t all the online transactions, how does VSoft’s core platform safeguard confidential customer information?

VSoft has implemented Managed Detection and Response (MDR), a cutting-edge solution to secure and monitor its core banking applications. MDR provides real-time detection and response to threats. By using machine learning, it detects anomalies in user-behaviour and identifies potential threats before they can harm its core banking applications.

Furthermore, considering the privacy requirements of primary and secondary identification data and documents, VSoft has developed a solution called Data Vault that eliminates the primary and secondary ID footprint from the IT ecosystem by building an abstraction layer, thus safeguarding all the confidential personal information of the customers.

What does the future have in store for the banking sector in India?

With the advent of digital banking, cloud banking and Application Programming Interfaces (APIs), community banks have been undergoing a significant transformation in the way banking products and partnerships are constructed. Banks are now expected to process transactions in real time, be able to forge partnerships with fintech companies within a matter of weeks, release new features on the go and also scale their infrastructure as per the requirements.

Also, the new age customers prefer to access their accounts and carry out transactions from their mobile phones or tablets on the go and the banking applications must be agile and device agnostic to be able to match up to their customers’ requirements and convenience.

A core banking system that is built with open source and modular architecture gives the financial institutions the much needed flexibility that will enable them to incorporate new technologies, collaborate with third party providers, secure their customers’ data and ultimately, deliver innovative solutions to them.

For further information about VSoft’s innovative products and services, visit https://www.vsoftcorp.com/

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Disclaimer: This article has been produced on behalf of National Projects team by Mediawire team.