Loan

Banking business and automation

Today, two types of companies are mainly involved in automating the activities of commercial banks: banking software developers and system integrator companies.

Developers are focused on their own software products. And this, in most cases, is an automated banking system designed to record banking operations, a reporting system to the Central Bank, systems for accounting for active-passive operations (crediting, deposits, securities transactions, etc.), loan servicing software, systems remote customer service (bank-client and Internet banking) and analytical subsystems of varying degrees of development. For various reasons, several banking automation tools that can bring considerable benefits to a credit institution and are already in high demand on the market do not fall into the sphere of attention of these companies.

Only an integrated approach based on an understanding of the bank’s business will allow an information technology company to become its long-term and reliable partner and bring real benefits to it from the development of information technology.

Automation of the internal activities of the bank

Today, systems designed for accounting of banking operations and issuing reports to the Central Bank have received the greatest development. This banking area is the most formalized and lends itself well to automation. However, to ensure the manageability of a particularly large bank, increase the transparency of its activities, as well as increase its efficiency, the bank needs some automated systems. This is, first of all:

  • Workflow automation systems
  • Management accounting systems
  • Budgeting automation systems
  • Asset and liability management systems
  • Analysis and decision support systems

The functioning of such systems in the bank is interconnected and requires a lot of preparatory work before their implementation. As experience shows, the failure of implementing most of these systems in commercial banks lies precisely in the lack of elaboration on the preparatory stage of implementation. Only companies that include not only specialists in specific software products, such as loan processing software, but also divisions specializing in business consulting and reengineering of existing business processes can solve this problem in a comprehensive manner. Analysts predict a significant growth in the market for such services in the near future, so the company is carefully preparing for it. It is already obvious today that the banking automation market is moving from supplying boxed products to complex projects supporting banking activities.

 Problems and Solutions

One of the main problems of automation is that the bank’s top management does not feel the real benefit from investments in information technology, which are often very significant. As a result, the management of the bank believes that it is wasting money, and the information technology departments are forced to somehow get out somehow within the framework of a meager budget and even feel like freeloaders.

Special tools and interfaces are required for bank management to directly use automation tools. Often it is enough to provide the manager with a convenient interface for working with the data of the automated banking system, and the attitude towards the IT service will improve. Neo-Fin has faced similar situations more than once and has developed special tools to solve such problems.

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