Tag: banking system

How Blockchain Tech can stop Future “Nirav Modis”

There are two absolutely polar opinions on the blockchain. The first is that blockchain will significantly save the resources for banks and it’s a panacea for all sorts of cyber threats. The second, absolutely opposite one is that this technology is just one of the possible solution and in general quite doubtful.

Blockchain

Nevertheless, not long ago the life proved, who was right and who was wrong. According to the analysts, if the blockchain would have been used to conduct transaction in the Punjab National Bank, it could save both the money of the investors and the reputation of the bank.

Bitter lesson for banking system

Let’s dive a little bit in the numbers. According to the research conducted by RBI the governmental banks have opened 8,670 loan frauds that cost them approximately Rs 61,260 crore. Wow, that’s actually a lot.

Well the latest crisis faced by PNB clearly shows the banking system needs fast and effective changes, in order not to make the same mistakes again and again. Just imagine the employees were managing to bypass the transactions using fake letters and checks long 7 years without getting caught. Sooner or later the bank has to answer for that by paying back Rs 11,300 crore. It hurts.

Nirav Modi and his partner in crime Gokulnath Shetty with the support of the fake letter managed to bypass the lender’s system and place the instructions through international payment system SWIFT to seamlessly take crores and crores.

Obviously, what’s done is done, now the police will find the most appropriate steps to restore the justice. I want to talk about the possible technical solution for the banks to prevent this kind of fraudulent activity.

Also Read: useful strategies for implementing Business Intelligence in 2020

Blockchain instruction manual

Blockchain is a chain of blocks, yes, as simple as that. Nevertheless, it’s not just a chain. It adheres to a strict sequence, which isn’t possible to change.

What are these blocks and what is the chain? Blocks are data about transfers, transactions and contracts within the system, presented in a cryptographic form. All blocks are lined up and securely connected. To record a new block, you need to consistently read information about the old ones.

All the data in the blockchain is constantly updating database. From this database, nothing can be removed or replaced. The space is “limitless”, so there can be recorded an infinite number of transactions.

The key features of Blockchain:

 Decentralization – there is no server in the chain. Every participant is a server. He supports the work of the whole detachment;

 Transparency – information about transactions, contracts, and so on is kept publicly available. However, these data cannot be changed;

 Theoretical unboundedness – theoretically the block can be supplemented with entries to infinity. Therefore, it is often compared to a supercomputer;

 Reliability – to conserve new data requires consensus of the nodes of the block. This allows you to filter operations and record only legitimate transactions.

To my mind, sounds quite impressive so far. Nevertheless, I would like to point out the use of this emerging technology for the banking system.

Also Read: Benefits of Digitalizing Transform the Construction Industry

Present and future of blockchain in banking

 After few disasters occurred in the banking sphere, many market players gave a second thought. Few Indian Banks (ICICI, SBI and South Indian Bank) have already started testing the new system based on blockchain. According to the leading financial analysts, the technology will help to improve the tracking system, which in the end will make the transactions safer.

In the Global Financial Market we can see the similar situation. SWIFT is promising to start the deployment of the payment system based on blockchain in 2018. Personally I’m quite curious to see the results.

Blockchain brings Safer World

The banks have a new prospect of moving the main operational and financial systems, as well as risk assessment systems, to a new platform for collective work with data based on blockchain.

The distributed nature of the blockchain databases makes hacking almost impossible. Only if the hackers will simultaneously access the copies of the database on all computers on the network, they can succeed. Frankly, sounds too fantastic to happen.

This will allow them to seriously simplify the processes, abandoning a large number of existing processes and elements of the information infrastructure.

Top 10 Core Banking Solutions for 2020

Banking Are you still utilizing traditional core banking solutions? Maybe, you are missing some great opportunities to grow your bank and improve your customer services. With the introduction of digital services in the global market, banks and other financial institutions have transformed the way they used to work. Today, a majority of the institutions are leveraging powerful and advanced fintech solutions to optimize their profits and enhance their customer experience.

Banking

According to Statista, the market capitalization of the global digital banking sector was around 7.2 trillion Euros in the third quarter of 2019. Hence, it is clear that the contemporary banks are fastly transforming their core banking systems, and are widely adopting the modern-day technological banking solutions.

What is Digital Banking?

With a significant change in the competitive market of the banking sector, and due to the fast-changing needs of the customer, the banks felt the need for a more modern and efficient banking system. That’s where the digital banking solutions came into play! The involvement of online services, and the introduction of more digital platforms, encouraged the banking customers to engage with their banks efficiently and enabled the banks to deliver a more personalized experience.

Digital banking, a modern-day banking approach, has enabled many banks and other financial institutions to upgrade their services more efficiently continually. Not only that, but digital banking also offers promising banking operations, and even helps the managers to make effective banking decisions. Additionally, the latest trends of digital banking, like that of anytime banking has brought a wave of transformation in the core banking sector. All in all, we can say that digital banking is a customer-centric approach that helps marketers to save costs and efficiently meets the changing needs of the modern banking environment.

Here are some of the significant features that make digital banking a hit in the global environment.

  • Real-time Accounting
  • Mobile Banking
  • Digital Coupons and Cash Backs
  • Dedicated Customer Portal
  • Investment Banking
  • Multi-Currency Support
  • Funds Management
  • Personal Finance Planning
  • Secured Database
  • Risk Management
  • Loan Management
  • Online Retail Banking
  • Compliance Tracking

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Top Ten Core Digital Banking Solutions for 2020

So, here we are at the most awaited section of our article, the top ten most trending banking software applications for 2020. Now, without wasting any further, let’s quickly dive into the list of top banking solutions that you can leverage in 2020 to optimize profits for your bank.

1. EBANQ

EBANQ tops our list of the most trending banking solutions for 2020. It has user-friendly functionalities not only for the customers but also for the admins and other bank employees. Ideal for small and medium-sized banks, it offers all the features needed to build success for your bank in the global market. From digital payments and funds management to loan processing and customer support, it offers all the vital features and functionalities. The mobile apps for this software are available for both the Android and iOS users.

2. Finacle

Finacle is yet again a powerful banking solution that efficiently addresses the core problems of the core banking, retail sector, and corporate sector of the global world. It offers an extensive range of comprehensive tools and web solutions to efficiently cater to every need of the users and power digital transformation strategies. You can seamlessly choose any dedicated banking solutions from its extensive range that best fits your business needs.

3. CorePlus

CorePlus can be considered as a complete banking solution that is available in the global market. It is one of the most affordable banking solutions designed especially for large banks and other critical financial institutions. Core plus encompasses all the critical features that your bank can leverage to optimize the customer service and streamline your banking operations.

4. Mambu

Mambu is a Saas banking solution, meaning, it is offered as software as a Service to all the banks and other financial institutes. It is a helping financial tool that readily delivers business values in a constantly changing environment. It is a cloud-based banking software that scales efficiently with the growth of the banks and other financial organizations.

5. Moneyspire

If you want to control your financial operations completely, then Moneyspire is the perfect solution for doing it. Moneyspire is an efficient and cost-effective personal finance software and accounting tool that can be seamlessly used by small and medium scale organizations. It is available in two versions, viz. Windows and macOS and efficiently tracks all your dues, bills, accounts, and budgets to help your organization grow seamlessly. Moreover, it also helps to streamline your investment process to help you in the decision making process.

6. Holvi

Holvi is a modern digital banking solution specially designed for freelancers and entrepreneurs. It is a robust banking solution that offers tools like invoicing, bookkeeping, auto-expensing, etc. to help your bank to grow efficiently. You can manage all your expenses, access your current account, invest your money in online business, and can even collect money from your customers using this software. What’s more? you can store all your documents in a centralized position!

7. Mifos X

Mifos is an extended banking platform that helps banks and other financial institutions to deliver the complete range of financial services. It is a robust banking solution that includes a client portal, a customer portal, and a centralized platform to carry out all the financial operations. The best part, it is flexible enough to support any type of organization, and any sort of product, service, or methodology. It is available as a mobile app, on-premise solution, and as a cloud-based solution too!

Related:- Pay As You Go Mobile Phones – Facts and Figures You Must Know

8. MyBanco

If you are someone who is looking for an open-source banking software solution, then MyBanco is a perfect software for you. Having open-source software implies that you can change the codes of MyBanco seamlessly to make it apt for your business. Not only that, but the code is of high quality and is secure enough to pass through all the regulations of ASIC and FDIC. However, you need to be sure that you efficiently change the code to eliminate all the loopholes and errors from it, possibly.

9. OpenCBS

OpenCBS is a web-based banking software solution that enables your clients to seamlessly access the banking services while sitting in a remote location. It not only delivers high performance, but it’s PostgreSQL database also makes it faster and more responsive. The interface of this software is user-friendly, and its cloud-based version incorporates all the essential features that are required by a user. In addition to that, the tablet version is also available that encompasses risk management and loan processing functionalities.

10. Cobis

Last but not least is Cobis. Cobis is a tech-friendly banking software solution that seamlessly meets all the changing needs of your customers by quickly analyzing the latest market trends. It considers current market realities and helps you prepare efficient plans to help you effectively grow business with time. Online payments, remittances, withdrawals, and seamless digital transactions are some of the robust features of the Cobis software.

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