Core banking checklist

All the questions you need to ask before

choosing a new core banking system.

Are you thinking of changing your core banking

system? How does your current system stack up
against a modern cloud-based solution?

Choosing the right product for your bank or financial

institution is a complex task.

The wrong core banking system can be an expensive

mistake, stifling your potential growth and making it harder to
reach new users and clients.

But the right platform can be a game changer. It can add

useful new functions, give you a better understanding of
client behaviour, make it easier to launch new products
and services, and give you an unassailable edge over your
competitors.

In this core banking checklist, you’ll find fourteen essential

questions to ask of your prospective core banking provider.

Find out as much information as you can about your

prospective core banking provider, then answer each of
these questions to work out whether it meets your needs –
then you can be sure you’re making the right investment.

Check off

Checklist each circle

if your core
banking system
provides these
features,
functionality or
service.

Can it be deployed easily and rapidly?

You want to adopt a new core banking system with minimal disruption to
your business. That means a platform that is quick and easy to deploy and
doesn’t require a lengthy and laborious implementation programme – even
better, one that your clients can use immediately on a web browser without
having to download an app, so you can get working with your new core
banking system without delay.

Does the provider help you implement their system and

train your staff?

Even if deploying your new core banking system is easy, is it easy for your
staff and your clients to use? Find out whether your prospective core banking
supplier offers a rigorous training programme to get your team up to speed,
so they can navigate your new platform easily and efficiently.

Furthermore, ask whether the provider will walk you through the
implementation process, helping you migrate your systems and monitoring
your progress to make sure the change goes smoothly.

Oradian offers a comprehensive knowledge transfer programme, full support

and guidance during the implementation process, and full-service customer
support to ensure adopting your new core banking system is simple and
painless.

Does it include robust security protocols?

Cybersecurity is a serious concern for all financial institutions. A hack or

data breach can not only disrupt your business, but seriously damage your
consumer reputation and leave you in hot water with the regulator.

You need to be sure your new core banking provider has robust security
protocols and their system is regularly tested and updated to identify and
eliminate potential gaps in its fortifications. In addition, security protocols
should cover the entire system rather than simply ring-fencing specific parts
of the business.

Does it receive regular updates?

Financial services is a fast-paced, constantly evolving industry, and you can’t

afford to be left behind by by investing in a core banking system that doesn’t
react to new market developments or changing security threats.

Ask any core banking provider at what rate their platform is updated, and
most importantly whether you will receive the very latest version of their
software as standard, without the need for any additional investment or
subscription fee. Make sure you know if you will have the latest and only
version of the software, whenever and however you access it.

In addition, try and receive assurances that your platform will never
experience any downtime when it is being updated.

Is it easy to configure?

You also need to know whether your new core banking system is easy to
configure to your unique business needs. It ought to have a reasonable
capacity for flexibility without an expensive, time-consuming customisation
process, while still working effectively straight out of the box.

Ask your new supplier whether they will take you through the configuration
process, or provide you with the tools to do so yourself.

Does it use APIs to integrate with third-party platforms and

services?

APIs (Application Programming Interface) allow programs and software to

interface with each other. API functionality is fast becoming the bread-and-
butter of cloud-based core banking system, as they give financial institutions
the freedom to link their platform to third-party software such as mobile apps,
accounting software, messaging services and so on. They can be used to
ensure data is securely shared across all these systems to give you a more
complete real-time picture of your clients.

This approach is called “extensible banking”.

When searching for a core banking provider, ask about their approach to
extensibility. Find out what APIs they use, and whether their platform is easy
to interface with third-party applications. An extensible system future-proofs
your business and gives you more control over your banking operations.

Does it include real-time data analysis?

Increasingly, financial institutions are looking for a “one data” view of their
clients to discover trends, understand behaviour and optimise their products.

If you are one of those organisations, ask your prospective supplier what
kind of client data their platform allows you to gather, how it stores that data,
and what kind of reports it allows you to compile.

Find out whether their platform can give you a real-time, holistic view of all
the data your clients produce, and whether it gives you the tools to target
offers, products and services to individuals based on this data.

Does it include integrated reporting?

Does your prospective core banking system include essential features such
as reporting as a central part of its offering?

This can be essential not just to the core functionality your business, but
also to ensure it meets key regulatory requirements. A platform that doesn’t
deliver integrated reporting will not significantly reduce the burden of manual
work on your staff, so find out whether your potential supplier offers these
functions as standard.

Does it include a loan management system?

If you are a lender, you probably need a digital loan management system
that lets you automate the entire lifecycle of a loan, from application to
closing.

Some core banking systems either don’t include a loan management

system as standard, or simply tack one on as an afterthought. Make sure
to interrogate a prospective provider so you know you are making the right
investment – find out if their platform offers all the features you need, from
credit assessments to automated payment reminders.

Does it adopt a DevOps approach to development?

The DevOps approach combines software development and IT operations.

It means traditionally “siloed” teams work together to automate traditionally
slow processes, using a technology stack that helps them quickly and
continuously develop and deliver new systems and products, responding
with agility to the needs of their customers.

If the developers of a core banking system employ the DevOps approach,

you can trust that they are able to rapidly deliver new products and services
that meet your needs with substantially reduced risk.

Is it scalable?

As your business grows, you need a core banking system that grows with it.
A consistent concern when sourcing new core banking technology is whether
you’ll be forced to pay for too much server space or too much superfluous
software too soon, or that your new platform will reach a plateau that stifles
your future growth.

One of the benefits of a cloud-based core banking system, for instance, is

that it is extremely cheap and easy to scale it based on your business needs.
Oradian’s community cloud architecture is designed precisely to allow you to
scale, providing you with exactly the functionality and server space you need
to launch new products and reach new markets as and when you need it.

Is it failproof?

A benefit of a cloud-based core banking system is that data can be easily

backed-up to protect sensitive information and ensure business continuity in
the event of a breach or a local server failure. That means you can recover
rapidly from a power outage, a natural disaster or a malicious attack on your
systems.

Does it have a local customer service team?

If something goes wrong, you want the reassurance that your needs are
being cared for by your core banking system provider’s customer service
team.

If you’re working in remote, rural, or underserved communities, you may

struggle to find a supplier that also operates in your market, and that
understands your client’s unique needs.

Before settling on a new system, find out whether the provider has a
customer service team that operates in your country, speaks your language,
and works to your hours.

Is it value for money?

Ultimately, you must set the business case for adopting a new core
banking system. That means it not only has to meet your needs in terms of
performance and functionality, but also in terms of value for money.

You need to trust that it will help you to grow your business, deliver a better
service to existing clients and make it easier to reach new ones.

Fortunately, Oradian’s core banking system operates on a flexible pricing

model based on a short contract subscription service. That means you
only pay for what you use and can migrate and implement with zero capital
expenditure – it scales with your business.

Results
Score How many questions did you check off?

1-7 This solution won’t work for you.

It’s getting there, but find out more information

8-10 before you invest.

This seems to meet your needs, but is there an

11-13 even better option?

This is the perfect core banking solution for

14 your organisation.

Oradian ticks all

the boxes
Oradian provides a flexible cloud-native core banking system used by over 10m
people globally.

Comprehensive and extensible, Oradian supports institutional customers across 13

countries to scale their business, to think bigger and go further.

If you would like to know more about our services or want to compare Oradian’s core
banking system with your current provider, our expert team is on hand for a no-
obligation consultation.

Contact us at [email protected] or via the website: www.oradian.com.