The Trends That Will Shape The Future Of Core Banking
The Trends That Will Shape the Future of Core Banking
Businesses making their way into the financial services sector share a number of characteristics. They are all client-focused and emphasize the importance of leveraging advanced technology to develop profound services and solutions. The global Core Banking Software market is expected to reach USD 11,960 million by 2027, up from USD 9,913.4 million in 2020, at a compound annual growth rate of 2.3 percent between 2021 and 2027.
Rapid changes in the core banking space, such as new business models, new technologies, and changing customer expectations, indicate that the future will be very different from the present on a variety of levels. The core banking industry is known for its analytical precision and data integrity, which is a brilliant attempt to highlight the key opportunities in the global core banking software market and assist new entrants in establishing a strong market position.
The market has been steadily growing in recent years, with prominent users increasingly adopting strategies. Markets are expected to rise in due course. To succeed in the future of core banking, organizations must embrace emerging technologies, maintain flexibility, and adapt scalable business models. Several possible trends that could shape the industry's future include the following:
Cloud-based core banking system:
In 2017, 74% of financial services firms including real estate accounting firms adopted some form of public/hybrid cloud architecture. However, the majority of financial institutions have adopted a risk-based approach to cloud-based banking. Starting with a proof of concept, moving on to a software as a service solution, and finally developing applications. Now, how likely is it that core processing will be moved to the cloud? It is, without a doubt, a feature that businesses must adapt to and transition to in the future. The following are some of the advantages of cloud-based core banking services:
- On-demand expansion and agility: Cloud-based services are adaptable and simple to scale up or down in response to an organization's IT needs.
- Infrastructure savings: By eliminating the need for businesses to maintain their own data centers, cloud-based core banking can help businesses save on high infrastructure costs.
- Security and Availability: Public clouds ensure that information is kept secure and private at all times.
Artificial intelligence:
Over the last decade, banks have seen a dramatic increase in the amount of structured and unstructured data available to them. Artificial intelligence is reshaping the future of banking and financial services as a result of advancements in cloud computing and machine learning technologies. Core banks will be able to make more informed decisions about a variety of functions, including back-office operations, customer experience, marketing, and product management, using the data history captured around Artificial Intelligence.
Ecosystems:
The next generation of core banking product providers is establishing an ecosystem from which banks can select best-of-breed modules. Appzone Core is an excellent illustration of this ecosystem. Appzone Core's honeycomb of products covers all aspects of digital financial operations and services, including a digital omni-channel online banking platform, a digital core banking platform, correspondent banking, card management systems, and agent banking.
Appzone Core has established itself as an innovative leader in the next generation of core banking providers by providing cloud-based software that manages core operations such as accounting, deposits, loans, and customer interactions in a fully digital and automated manner.
Expanding customer segments:
In a generation where enthusiasm for anything is fleeting, acquiring customer loyalty is not easy. There is a strong possibility that the core banking industry will expand in the future, with banks introducing new products based on data gathered from a variety of sectors. Thus, by continuing to develop services and offer relevant, attractive, and innovative tactics, we can increase customer loyalty and make it easier to acquire new customers.
A strong core banking infrastructure is something that every financial institution should strive for; it enables customers to have increased transaction freedom and flexibility, simplifies banking processes, increases convenience, and overall customer satisfaction. For years, AppZone's flagship service, BankOne – a cloud-based digital core banking application – has aided banks in seamlessly managing all operations and delivering banking services via digital channels. To learn more about AppZone's market-leading core banking solution, schedule a demo session or browse our website.
