Core banking platforms of the future

Banks are being struck hard by rapidly developing digitalization and face a variety of new issues as a result. Digitalization is upending the banking industry and posing numerous issues for banks. Significant shifts in client expectations, the introduction of disruptive competitors, and growing usage of current digital technology are just a few of the important developments in the financial industry affecting long-term competitiveness.

Advances in technology and evolving client expectations are expected to affect the future of core banking platforms. Here are some significant trends and features that could be included in future core banking platforms:

• Core banking platforms which  are projected to shift to cloud-based infrastructure, which provides scalability, flexibility, and cost-effectiveness. Banks that use the cloud may simply extend their operations, incorporate new technology, and access real-time data.

• Personalization and Customer Experience: Personalized customer experiences will be prioritized in future core banking platforms. To gather customer data and deliver personalized recommendations, advanced analytics and artificial intelligence (AI) will be used. Customer engagement and satisfaction will improve with real-time notifications, intuitive interfaces, and self-service possibilities.

• APIs and Open Banking: Open banking initiatives are likely to drive further innovation in the banking industry. Future core banking platforms will most likely include open APIs (Application Programming Interfaces) that allow secure data sharing and integration with third-party apps. This allows banks and fintech companies to collaborate, resulting in improved consumer experiences and a broader choice of services.

• Security and fraud prevention will be prioritized in future core banking platforms as cybersecurity threats increase. To secure the integrity of client data and guard against cyberattacks, multi-factor authentication, biometric authentication, and advanced encryption techniques will be used.

• Regulatory Compliance and Risk Management: As regulatory compliance becomes more important, future core banking platforms will include expanded tools for managing risk, automating compliance operations, and assuring regulatory framework conformity. This includes monitoring capabilities for anti-money laundering (AML), Know Your Customer (KYC), and transaction monitoring.

• Internet of Things (IoT) Integration: As IoT devices proliferate, new opportunities for core banking platforms will emerge. Banks may offer context-aware services, real-time financial data, and frictionless transactions by integrating with IoT devices such as smartwatches or home automation systems.

It should be noted that the specific features and functionalities of future core banking platforms may differ depending on technological breakthroughs, regulatory frameworks, and market demands. These trends offer a glimpse into the likely future path of key banking platforms.