There are profound changes taking place in the financial services sector. Fintechs are challenging traditional financial institutions (FIs), posing a threat to credit unions, microfinance institutions, trusts, building societies, and other institutional lenders. Failing to adapt to digital transformation could mean the end of many FIs.
This blog post explores three solutions financial institutions can use to leverage modern core banking systems.
Join the future of banking with Phoenix International
Reignite Relationships with Digital Banking Engagement
Customer service is not just crucial; it is a make-or-break factor for the success of any business. However, many financial institutions face difficulty cultivating enduring client relationships.
Modern core banking systems like Phoenix International offer a beacon of hope for FIs, empowering them to adopt a customer-centric approach. These systems provide a streamlined and convenient banking experience across multiple channels, making it easier for users to access and manage their finances using mobile and other digital applications. With round-the-clock support from chatbots and AI-powered assistants, these systems promise a brighter future for customer engagement and retention.
By leveraging data analytics, customer profiles can be created to better understand dormant account holders’ needs and preferences. This targeted approach and attractive incentives delivered through secure mobile apps or personalized emails can effectively nudge customers to utilize financial services.
Integrate an elevated lending experience with digital Loan Origination.
Loan origination is the first step in a long and rewarding journey for the customer and the FI. However, this journey is often off to a ‘rocky start,’ as customers frequently believe that their loan is at the adjudication stage when, in actuality, they need to produce outstanding documentation. Without a digital loan origination system, the loan application can become like a jammed printer, with neither party becoming the wiser of the reason.
Another issue is that traditional systems often struggle with post-origination loan management, creating a cumbersome process for FIs and borrowers. For instance, an emerging market FI’s systems can initialize loans; however, subtracting monthly payments over the life of the loan is tedious as the process is often done manually. In addition, customers cannot make payments without physically visiting a branch, which strains the customer’s time.
Modern core banking systems like Phoenix International integrate loan origination, management, and repayment into a unified platform through our partnership with LoanCirrusTM. This integration provides automated workflows, handling tasks including scheduling installments, generating reminders, and applying late fees.
Secure payment gateways integrated with the core system allow borrowers to conveniently make payments online or through mobile apps, eliminating the need for branch visits.
Embrace Modern Genera;=l Ledger Management
Modern core banking systems like Phoenix International feature robust General Ledger (GL) functionalities that can handle intricate calculations on loan portfolios, depreciation schedules, and inter-ledger transfers. This eliminates the need for manual entries and reduces the risk of errors. Integrated reporting tools generate real-time financial statements for better decision-making. Advanced security mechanisms incorporated into the core system safeguard data integrity and prevent unauthorized access.
Additionally, modern core systems like Phoenix International often offer cloud-based deployment options, including Microsoft Azure for Financial Services, eliminating the need for expensive on-premises hardware and simplifying system maintenance. Modern core banking systems, with extensive security measures and regular updates, provide a far more robust defence against hackers.
In conclusion, the future of financial services belongs to agile, adaptable, and customer-centric institutions. Financial institutions can maintain their position in the ever-changing financial world by embracing digital transformation and using the capabilities of current core banking systems. They can ride out the fintech storm and emerge more robust, more efficient, and better prepared to serve their clients in the digital age.
Learn more about how our solutions can keep you above the flood. Visit More Than Just Banking – Phoenix International today!