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Which Software Is Used In Banking? Unstring Your Confusion

By Sumaiya Simran -- Tuesday, 22 Nov, 2022
which software is used in banking

The answer to this question of "which software is used in banking" is Banking ERP software solutions, and this blog is all about that. Which software is used in banking, and how the module of smart automation can help your banking operation? 

When the world is moving towards digitalization, and every other institution, such as hospitals, pharmacies, education, and hospitality sectors, then why'll the Fintech Industry Fall Behind from being digitized??

In fact, a fast and secure automation system is much needed in this industry, too, because now people want quick solutions and don't like to wait in a long query line.

Many senior bankers believe that financial institutions are one risky sector to integrate the automation software system because it might open up many opportunities for theft. 

Recently, many new financial startup companies, for instance, BharatPePlum fintech limited, and Razorpay, have proved that the fintech industry can also provide any kind of financial service in the form of digital banking ERP software solutions like mobile apps, instant QR scanning payment, online banking, etc. 

Overview of Banking ERP Software Solution

Almost every banking sector has adopted smart banking ERP software, providing the best, most convenient, reliable, trusted, fast, and real-time service to every customer. 

A banking ERP software solution is a smart digital system that ultimately aids and handles the whole management system in the banking operations, including day-to-day transactions, journal entries, records of the customer clients' data and their transactions, etc.

Moreover, because of the smart  API integration, banking ERP software can effectively trace the diversified distribution channel, client data, card issuing, recording the POS payments, withdrawals, digital retail banking, or the bank to bank transfers. 

In short, banking ERP software in a bank covers up all the time-consuming & manual work and shifts it to this automation platform. 

Now, bankers can provide fast banking service to every customer, and all thanks to digital automation banking ERP solution, which takes away 60% of the workload.

The major changes after integrating banking ERP solution:

  • Opens up diversified communication channels such as mobile applications, web apps, and AI assistance of a banker
  • Transformation to the virtual banking ERP software in a click solution, hence now people don't have to go to the bank physically and communicate face to face. 
  • Because of this effective digitized ERP banking solution, the most bank now apply "lesser branch" or "no extra plugin software," 

13 Best Type Of Automation Solution Integrated With Banking ERP Software Solution

Banking ERP Software Solution

Nowadays, the generation has been so fast and automated that the banking industry can’t imagine running their operation without the digital banking ERP software solution

Many might ask which software is used in banking sector. Is it like “different tasks required for different software” or “one centralized software, which provides the all-in-one solution”? 

Customers now want instant alone with round-the-clock service and don’t want to wait in a long query line. Below are 14 automation software solutions strongly integrated with banking ERP software solutions.

  1. Core Banking System 

A “Core banking system” is a centralized online real-time exchange. In short, the back-end technology tremendously assists daily bank transactions. Moreover, this module fully consists of deposit, withdrawal, loan, credit processing, account creation, etc. 

In addition, the terminology “core banking system” itself describes banking service-oriented artificial intelligence. Hence, it becomes beneficial for the banker to provide trusted, safe, fast, less paperwork, improved communication with multiple branches, and time-consuming customer service. 

Because of this new revolution in the banking industry, most banks can cut down the operational cost required for fewer human resources, simultaneously opening up the opportunity to work on different things at a time and may increase efficiency. 

Core Banking System Have Its Sub-Module: 

  • Centralized Dashboard
  • Customer Onboarding
  • Customer Relationship Management (CRM)
  • Transaction Management
  • Deposit & Withdrawal Management
  • Account Management
  • Cash Management
  • Loan Management 
  1. Accounting Management System (AMS)

An account management system (AMS) is especially architecture to perform day-to-day transactions, issuing cheques, journal entries, deposits, remittance calculations, and withdrawals. 

Accounting management systems (AMS) are a strong part of banking ERP software solutions and core banking systems. Therefore smoothly run the daily operations such as; payment processing, account receivable, account payable, and bank reconciliation systems. 

Many bank tellers consider this account management system a multi-purpose automated calculator, which not only calculates the transaction but also automatically records them in the server within real-time. 

Accounting Management System (AMS) Have Its Sub-Module:

  • Real-Time Dashboard 
  • Tax Management 
  • Compliance Management 
  • Payment Processing 
  • Account Payable 
  • Account Receivable 
  • Bank Reconciliation System 
  1. Customer Relationship Management (CRM)

The only way to make the bank branch successful is for a bank manager to do proper marketing of that branch and build a fruitful relationship with current and potential customers. 

#Check Out The Do’s And Don’t To Be A Successful Bank Branch Manager                 

Both financial and nonfinancial institutions’ common objectives are to keep their customers satisfied and happy with the service they expect. 

Nowadays, customers are very smart to deal with, so why not use automation techniques to nurture your customers? Therefore, a banking ERP software solution also comes up with an intelligent customer relationship management system (CRM). 

How Does Customer Relationship Management System Help A Banker?

The main purpose of the customer relationship management system is to understand their problem by giving the highest importance and serving the best satisfying service to them. 

Moreover, this artificial CRM software aids a banker in recording transactions, client or personal information (contact no, name account no, last transaction date/time), business information, loan information, and many more. 

Hence, this CRM software solution will automatically generate personalized deals and financial services. Because of the CRM system in the banking sector, managing thousands is at the fingertips. 

Customer Relationship Management (CRM) Have Its Sub-Module:

  • 360 Degree Customer Dashboard
  • Contact Management
  • Data Analytics & Reporting
  • Lead Management
  1. Cash Optimization System

Cash optimization in any financial institution is risky and time-consuming. It used to take longer to do cash optimization by the bank teller because of manual counting and generating transactions. 

But because of the banking ERP solution, the whole process of cash optimization is fast, secure, and automated. With a cash optimization system, bank tellers don't have to count cash manually and automatically record the day-to-day transactions, loan disbursement, deposit and withdrawal records, and other micellance payment details. 

Cash optimization systems have some exclusive advantages, such as transparent documents that are easy to track and analyze, lower operational risk, and automated generated reports, making it easier to predict and evaluate the bank's performance. This module is directly integrated with ATMs, too, as this system assists in regulating the cash flow. 

Cash Optimization System Have Its Own Sub-Module:

  • Forecasting
  • Optimization
  • ATM And Branch Visit Planning
  • Order Management
  • Cash Management Controlling
  • Supply, Turnover, And Efficiency Reports
  • System Maintenance And Documentation
  1. Trading Platform 

Not many might believe or know the concept “how banks make a profit?” and “where does the extra money a customer get in the form of “Interest”? 

Banks will receive, hold and invest the “deposited amount” in different ways to earn a profit. After the trade, the money will automatically go back to the deposit section along with some additional amount. 

In Short, Banks Are Also Doing Business, Not Directly But Indirectly

Many people use these investing tactics for their good; let me explain how?? 

But those who understand or know about “bank investing schemes” usually deposit their hard-earned money in high-interest rate savings accounts, retirement schemes, government saving plans, different stock trading, forex trading, and many more. 

Hence, banking ERP software solutions offer different solutions, such as a trading platform system to provide, monitor, and handle those kinds of trading tactics without any hassle. 

  1. Payment Network 

Whenever any customer enters the bank, he or she expects to get the “all solution” under one roof. Hence, this payment network module in bank ERP solution is no individual software; it is a combination of all into one software. 

Whatever & from wherever you do any type of transaction, it can be POS purchasing, ATM depositing and withdrawing, electronic transfer, debit/credit card bills, internet banking, and e-commerce payment, etc.; every single payment or transaction will be transferred through a banking payment network. 

Banks usually offer clients multiple payment networks so they can access funds in various ways. Not only that, by collecting those leads, banks bring improvements to their banking service and can personalize different offers for the clients.  

  1. Information Management System 

One of the major parts of the banking system is the information management system. This dynamic information management system stores every information of the client's confidential/crucial data in the bank's main server, cycles the data, and helps generate better financial planning, finally saving in the bank's CRM server. 

Moreover, using those data to analyze the bulk chunk of data to generate different customer-focused strategies and based on collected leads, banks adopt various changes in their operation. 

As the world is going towards digitalization, people want a comprehensive system, which means getting all one solution in one system. 

Banks are slowly moving away from handling physical assets, such as coins, gold, fiat currency, etc., to digital currency. Hence, the information management system helps financial institutions like banks provide the best fast service to clients and improve daily work. 

  1. SMS Banking Software 

Another innovative feature of banking ERP software is the SMS banking module. Through the SMS system, a customer will get a notification of confirmation that their necessary has happened correctly. Customers will get an SMS every time they pay any bills or do any transactions through mobile banking. Some of the exclusive features of SMS banking software: 

  • Customers will be able to access their own information and get the transaction confirmation SMS. 
  • Can be able to pay any kind of postpaid bills or payment and also get instant SMS from the bank. 
  • Recharging any time to avail of prepaid services, EMIs, and many more.
  1. Merchant Banking Software

Even though there's a huge difference between merchant banking software and retail banking, merchant banking is more like investment banking. Merchant banking is dedicated to providing service to small, medium, and large businesses.

Not only that, this software can collect, process, and store information, which can be used to create a client portfolio, diverse information about funds, loads and transactions, etc. 

Now, bankers don't have to take any extra tension to make reports manually; with this effective banking ERP software, a banker not only gets a user-friendly, & smooth interface but also gets a comprehended financial chart, different analytics, etc. 

  1. Integrated Security System (ISS)

Indeed, banking ERP software is a giant software integrated with several other strong modules such as accounting management software, core banking system, customer relationship management, cash optimization system, and many more. 

An integrated security system is a centralized system where all the modules get connected with each other; for instance perform different administration functionality, security operations, role management information, user information, utilities, master setup system, and many more. 

  • Interactive Dashboard
  • Administrative Transactions
  • Role Information System
  • User Information Management
  • Utilities Management
  • Master Setup System
  • Product Management
  1. Human Resource Management (HRM)

Of course, the banking ERP software is integrated with effective HRM software because this module will help to record all the activities of the employees' workflow, attendance, payroll, etc. 

Human resource management software is especially required to manage the employees and ensure an automated workflow, keep records of the employees; KPI; as a result, it becomes easy to evaluate the employee at the year-end. 

  • Payroll Management System
  • HR Planning, Recruitment Process 
  • Compensation 
  • Training & Development
  • Employee Attendance Management
  1. Inventory Management System (IMS)

Many might ask, what is the purpose of an inventory management system in banking software? An inventory management system in the banking ERP software helps to manage the inventories, audit activities, supplies, and computer equipment. Moreover, this module also keeps track of devices used in different bank branches, gears, software licenses, asset management, real-time information, data accuracy, and better productivity. 

  1. Crypto Banking 

An amazing part of this banking ERP software, it has a separate crypto banking module, which allows you to buy, sell, trade, invest and exchange different cryptocurrencies and fiat currencies. 

In short, banking ERP software transforms the whole decentralized system into a centralized one. Some of the interesting features of this module are, for instance, a double encryption security system, 3-step identity authentication, and two-way QR payment.

4 Best Ranked Banking ERP Software 

which software is used in banking

This five banking ERP software is Google ranked the best software, hence the most demanding banking software in the market. Indeed, this five software is highly customizable; therefore, you can be structured according to your need. 

  1. Banking ERP Software Solution 

Banking ERP software is one comprehensive software, a bundle full of exclusive and essential modules, 100% secure, customizable, and affordable. Banking ERP software is introduced by one renowned software developing company Bdtask Inc.

This banking software solution is a core banking software integrated with various important banking software such as an Account management system, customer relationship management system, integrated security system, crypto banking, and many more. 

With a banking ERP software solution, you can bring strong control over all the diverse bank branches in just one click. In short, take over all the decentralized banking operations into a centralized and digital system.  

  1. Finacle Digital Banking Platform

Finacle digital banking platform is known as cloud-based core banking software. Therefore, it helps banks evolve into the new digital and cloud banking service era. 

Finacle is one of the most innovative and digital banking platforms, offering different exclusive features such as open APIs and a real-time processing engine. 

  1. Finastra

Finastra is one of the broadest and most popular financial software solutions in the fintech industry. And Finastra is proudly partnered with the world’s top 90 banks as a real-time core banking processing software. Moreover, Finastra is one of the most flexible, open technology, innovative, and digital banking software solutions. 

  1. SDK.Finance

SDK. Finance is renowned as one of the core banking software providers, which is integrated with the API layer. Besides, this software comes up with a highly secured solution, a mobile app integrated with a different e-wallet such as Paypal, Alipay, or PayTM. Moreover, this software is a combination of 5 essential features: 400+ API endpoints, 3+ front-end frameworks, smart web for system management, and offers both iOS and Android versions for mobile apps. 

Conclusion 

The banking industry is complicated, hence a mandatory need for secure, user-friendly, flexible, and comprehensive software in every bank and branch.

Therefore it's not about which software is used in banking.; it is about whichever software you choose, it must cover all the manual operations with one digital & centralized system. 

A banking ERP software solution can help a bank manager run the bank effectively and improve employee efficiency to bring customer satisfaction.