Works at FINTRAK.
Digitalization is changing the world. It’s especially true in the world of banking, where many companies fight for their customers. Thus, to be successful in financial services, a business has to offer the best banking software, and remain convenient, reliable, safe, compliant, and modern. A few years ago, traditional banks were the kings, so they could afford certain flaws and issues. Today, the situation is entirely different.
Many fresh fintech startups confront traditional businesses. They offer much more sophisticated services and products: digital-only solutions, mobile apps, instant transfers, 24/7 support centers, and so on. It’s now possible thanks to top banking software systems. So, how do these solutions work? What are the most famous examples? Which functions and modules are essential for the best banking software? Let’s find out in this guide by banking experts from FINTRAK!
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Banking software overview
First off, we want to start with a brief overview of the modern digital banking universe. To understand how the related software works and how it can help your business, it’s essential to know the recent trends. The majority of top banking software companies take these tendencies into account to provide the most demanded services or products. So, here’s the question.
So what do you think, what are the trends in the development of banking software for the next few years?
- A bigger number of communication channels: mobile applications, web apps, digital assistants, and much more
- A shift to digital banking software solutions: buying services and solutions don’t require face-to-face communication with bank workers
- Artificial intelligence: machine learning and cognitive computing will grow the revenue of the banks
- Digital-only banks: no branches, no offices, and no extra financial software development cost for their maintenance
- Software development: improved code quality and stack choice for processing massive blocks of data
Why do we expect to see an increase in spending on banking automation solutions? Trends require banks to become more digital to meet all the requirements and expectations of the clients. We can admit that this is not the cost growth but efficient investment in top banking software solutions. Now, let’s look at the basics of our topic and then dive into detail.
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What does banking software mean?
What is banking software for the fintech industry? Shortly, it’s a means of communication between a bank and a user. It serves to improve the workflow inside the company and its branches, for easy investment policies, and to provide the services that solve the users’ needs.
Here are three major requirements for the banking software:
- Powerful – no delays, mistakes, or crashes
- Cross-platform – it can be used on any platform and on any device
- Secure – no access to the data by third parties
Key functions of banking software solutions
There are many types of banking software, but they often share the same set of features. The thing is that many systems are packaged. Vendors sell them to various market players. That’s why the presented functions are generalized to satisfy all customers of top banking software companies, from small fintech startups to multinational corporations.
On average, the list of features looks as follows:
- Customizable interfaces
- Data management and history tracking
- Documentation
- Online lending
- Financial instruments, investments
- Live customer support
- Mobile version
- Online deposits
- Self-service options for clients
- Online payments and bills
- Transaction processing
Unlike off-the-shelf solutions, custom tools developed by dedicated vendors can include other functions. If you know what is financial software and realize which business goals you can cover with it, a custom development team like FINTRAK can build software solutions tailored to your needs specifically.
Banking software modules and integrated tools
Let’s also check out how banking software works. According to the features listed above, there are a few basic modules that host these features. Depending on the chosen architecture model, these modules can work together or independently, allowing customer banks to turn them on and off. The best online banking software usually centers around several essential modules that cover all the areas of client demand.
- Core banking
- Corporate banking
- Credits and loans
- Fraud management
- Investments
- Marketing activities
- Operational intelligence
- Regional and local support
- Risk management
- Wealth management
Types of banking software
It’s impossible to imagine any retail bank without the best online banking software. Surely, today, banks can offer their services round the clock for all clients in any part of the world. Custom solutions give banks a chance to fully satisfy the needs and requirements of their clients.
The latest trend in the private banking niche is digital-only banking. Obviously, banks exist in an online world without ground branches. Clients use their mobile devices, watches, or other IoT gadgets. Banks get closer to their clients, and it’s much easier to forecast revenue with e-banking software.
SMS banking software
There’s no need for the clients to own a smartphone to get the most from SMS banking features. Most banks provide their clients with the opportunities to pay bills, enable or disable some services, and so on. Everything required is a short message.
What is banking software for SMS? Usually, it’s a set of three key features:
- Recharging. You can replenish your mobile phone account or any prepaid service, order a loan without plastic cards, etc. It’s available round the clock.
- Paying postpaid bills. One message is enough to make payments.
- Access to information. A client can request any information about transactions or personal accounts with an SMS.
Top 10 banking software firms offer basic SMS services. However, the development requires a thorough approach to make the final product robust and user-friendly. There shouldn’t be complicated commands or lines for the clients. Simplicity is the key to success here.
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Merchant banking software
Merchant banks differ from retail banks as they’re more similar to investment banks, providing their services to businesses and not individuals. Which software used in the banking sector can satisfy merchant requirements? Overall, it has to offer features for collecting information, processing it, and storing it. It can be a portfolio, information about funds or accounts, history of trades, and so on.
It’s good to have a software solution that will help banks track transactions and get accurate reports on every portfolio. The user-friendly interface of the software should comprise various charts, analytics, and other blocks of data. Everything should be easy to access and perceive in real-time.
Top banking software should have a high level of security to prevent any data leakage. The work of security solutions shouldn’t make the overall workflow slower or influence it anyhow. Bank employees should have limited access to the information depending on their position in the enterprise and the tasks they need to solve.
Investment banking software
The fintech industry and investment banking niche aren’t overloaded with a large number of software solutions for automating everyday processes. What we have now is a pack of services or cloud solutions that solve very specific tasks. What banks require is the best banking software solution that will comprise improving the workflow inside the company and the quality of services.
Most banks provide complex transactions and deal with huge enterprises where there’s a need to process big blocks of data in no time. Open-source solutions are not a good fit here. The less human work is required, the more revenue an investment bank can gain. Online access to any piece of information that is updated in real-time lets the enterprise show a better market performance.
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