True to its name, a universal banking solution offers a singular and integrated platform where banks can carry out a comprehensive range of financial functions and services. This innovation is a stark contrast to the siloed legacy systems that sustained the operations of traditional banks in the past. Compared to dated banking systems that make use of separate, differentiated platforms for performing different functions, universal banking solutions are designed to promote collaboration and help a financial organization make business-critical data-driven decisions.
Overhauling your company’s core banking system by adopting a universal banking solution will ensure that your financial organization is ready to meet the challenges of the digital age. But how exactly will such an innovation affect your bank’s core system and ascertain that your company will remain competitive in a rapidly changing financial and technological landscape? Here are 4 ways that a universal banking solution can positively impact your institution’s core business and operational functions.
Improve a Bank’s Ability to Introduce Innovative Products to the Market
While retail banks serve the general public, today’s consumers tend to demand personalized experiences that they can access with ease. However, quickly rolling out customized financial products and services that fit the changing and highly varied lifestyles of today’s consumers remains a challenge for financial institutions. It’s a good thing, therefore, that a universal banking solution offers a host of features that will streamline and fast-track the design, development, and rollout of financial products and services that respond to the needs of the market.
An integrated banking platform, for one, enables an institution to collect, store, standardize, and access information from each and every area and individual customer that it serves. On top of these, a universal banking platform is capable of parameterization and localization, which a financial organization must be able to do to tailor-fit its products and services to a predetermined location and demographic. Access to such abilities allows a bank to make quick yet data-driven decisions when designing their up-and-coming products. This, in turn, shortens the time that a bank needs to come up and roll out customizable financial services that appeal to their target customers.
Ease the Task of Managing Personalized Packages Put Together by Customers
Over time, a retail bank can focus on creating and releasing modular financial products. The customers, then, can group together the modules that appeal to them and come up with financial packages that are curated to suit their particular contexts and needs. Flexible pricing, another capability offered by universal banking solutions, is key to ensuring that banks will not have any trouble pricing the customized packages that their customers put together. This ability enables banks to easily implement complex and even volatile pricing strategies by giving them the means to define and categorize pricing rules. Among the features that flexible pricing brings to the table are the ability to control timeframes, the capacity to introduce business-specific pricing setups, and the ability to automate price publishing.
Unlock the Capabilities Offered by Machine Learning
Machine learning, simply put, refers to the use and development of computer systems that can analyze and draw inferences from data patterns. In the financial industry, this technology is specifically used to assist companies in predicting future trends. Being forewarned of these changes enables companies to come up with products and services that anticipate the needs of the market.
In addition to predicting market trends, machine learning is also playing an integral role in securing banks and ensuring compliance with regulatory bodies. Many financial organizations remain vulnerable to financial risks, data breaches, and damage inflicted by cyber criminals, and the situation is only expected to worsen as the world becomes more digitalized. Machine learning can be used to beef up a bank’s security system by predicting and preempting the strategies that modern financial criminals are using to bypass more traditional security systems. This, in turn, can help banks build a reputation founded on safety and security. It can also assist banks in reducing compliance costs without necessarily increasing the possibility of incurring fines from regulatory bodies.
Maximize the Opportunities Offered by Open Banking
Open banking or seamlessly and securely collaborating with third-party service providers is an essential capability that many tech-savvy customers are looking for in modern banks. It’s also a feature that can open up a lot of business opportunities for financial services providers. Being a part of a financial ecosystem that’s integrated with third-party products and services gives banks access to a wealth of information. They can then use this data to improve their capability to predict future trends, come up with products and services that meet the future needs of their clients, and invest in technologies that will enable their institutions to keep up with the competition.
Clearly, the adoption of a universal banking solution is a move that will modernize your bank’s internal processes and improve the banking experiences that your customers can expect from your organization. With this tool at your disposal, you’ll be able to simplify your banking system all while living up to the expectations of modern banking customers.
