Generally, there are numerous technical aspects that should be considered before developing an online banking platform for startups. And in a Quick Summary; consider the switching of one’s finances more intelligently.
As such, it leads the creators to apply the principles of human-centered when building fintech products. Many startups, as well as giant business organizations, wonder about the technical aspects to consider while developing a finance online banking platform for their business.
With that in mind, in this blog, we’re going to know the technical aspects to keep in mind before you start building an online banking platform.
Table of Contents:
|1. Introduction: Online Banking Platform For Startups
2. What technology aspects should be kept in mind while building an online banking
3. What are the top technology innovations that will shape the future of banking?
4. Final Thoughts
Introduction: Online Banking Platform For Startups
The finance industry is as old as time and many people dare enter it. Modern and innovative technology helps to ease everyday tasks and reduce human intervention in financial activities. Finance or the banking sector is a popular startup sector for many organizations.
The main reason being, more and more people are striving for financial literacy. But, it’s not enough to design a good product successfully. Switching to one’s finances more intelligently leads the creators to apply the principles of human-centered when building fintech products.
Technology Aspects to keep in mind while Building an Online Banking Platform
Initially, many issues are inevitably rising while working on any project. From the initiation stages of building a house to creating a digital banking system. If you’re looking for a guide on financial software development then here we’re going to learn more in detail.
Especially, all the steps to consider while building a great banking software for your company’s requirements – we’ve got it all covered below. Enjoy! So, without any further ado, let’s get started. Below are the Key Technology Aspects to keep in mind first.
1. Transforming Core Banking Legacy Systems
Practicing piecemeal technology facelift for years, we can see an increase in recognition of a more foundational transformation for the digital future. A study by Efma-Infosys Innovation conducted in 2018 says that legacy technology is the biggest impediment to innovation.
The modern digital realities demand a core financial system that results in open innovation, cloud-nativity, and comprehensive analytics.
2. Finding The Right Cloud Strategy
Before developing an online banking platform, make sure to choose the right cloud strategy in a bank’s unique context. The cloud conversation in the financial sector has moved past the initial apprehensions of whether cloud technology is enhancing to more advanced considerations or not.
More and more progressive banks are starting to adopt cloud services for gaining the benefits of innovation and flexibility. Seamless functioning in multi-cloud environments and infrastructural efficiencies are important factors to keep in mind while charting out the course for migration.
Introducing these right before developing an online banking platform, prevents the requirement to engage providers repeatedly after they transition out.
3. Build An Open API Strategy
Banking systems that are ecosystem-driven encourage competition and have compelled banks to take a fresh look at the foundational principle in programming which is the application programming interface.
Before the financial sector claims readiness for the platform model, make sure to create an open API strategy that aligns with their business approach.
4. Evaluating Automation
Automation also makes sure that the right digital human interplay is the hallmark of a successful digital business. If banks are implementing modern AI technologies to automate your routine tasks, then it is expected that they’ll ensure higher efficiency gains.
In addition, they’ll even scale up attributes that technology is not equipped to replace. But, what are the Top Technology Innovations that will Shape the Future of Banking? Let’s elaborate on some of them below:
a. Augmented Reality
In the rapidly growing technology sector, the usage of modern and immersive technologies is increasing which helps to improve customer experience across the board.
There are possibilities that the implementation of augmented reality technology in the finance sector is only limited by imagination. But at last, it is to give customers complete autonomy in transactions that they perform at home and become flexible.
b. Robotic Process Automation
The unstructured data processed by the banking sector is increasing exponentially with the rise of the digital economy. These are not just online banking transactions but also the behavioral data that could help banks to enhance customer experience.
The modern innovative technologies are clubbed with machine learning, chatbots, and robotic process automation in the banking field that helps the bots to learn and improve.
c. Artificial Intelligence
There is a huge growth seen in the amount of unstructured and structured data processed by the financial sector which is integrated with the growth of cloud computing and creates a perfect storm for artificial intelligence used across the spectrum of the financial services landscape.
AI allows the finance sector to use large histories of data that they capture to make better decisions including customer experience, marketing, and compliance.
Basically, Blockchain Technology is used to introduce distributed ledgers with no DBA involved. It allows more than one party to access the same data simultaneously and makes sure that the immutability of the records is entered into the database.
According to the survey conducted by Accenture, it is expected that the investment banks will save up to $10 billion by implementing blockchain technology and improving the settlement systems.
e. Instant Payments
As we are moving towards a cashless economy, the customer expectations for payments are dramatically changing. Both businesses and consumers expect payments to happen instantly and this is where the payment systems step in.
So, the financial sectors around the world are finding ways to provide their customers with more instant payment options without lacking behind in offering any services.
f. API Platforms
With the usage of modern technological innovations, the time is not far when the banking sector will control the entire customer experience through a monolithic system that will handle everything starting from keeping records to customer interaction.
For your information, the API banking platform is created to work through APIs. These APIs provide backend execution to third-party partners.
g. Hybrid Cloud
By all means, customers want quick responses to any of the queries. And it’s one of the biggest challenges the banking sector has. The quickly evolving market that banks operate in requires them to be as agile as possible. They offer resources across the organizations in a timely manner to introduce business problems faster.
The hybrid cloud technology allows banks to provide innovative offerings to their consumers and automate the basic reconciliation process via Zoho Books by making it easier to offer various options to them.
Eventually, there is an increase in the number of financial and non-financial customer data banks. Especially, that holds a significant responsibility on banks while offering numerous opportunities.
And in reality, the usage of central themes across various functions, units, and processes in the digital future will inevitably be customer experience. This means it puts the financial sector in a prime position. Whilst, making sure that the contextual experiences as banking becomes embedded in all kinds of digital interactions.
Related Topic: Online Jobs That Require Little Or No Experience
Finally, if you follow the factors listed above then you’ll have responsive, innovative, and agile experiences with a wide range of functionalities. Particularly, those required to build a perfect online banking platform. But, if you’ll need more support, you can always Contact Us and let us know how we can help you.
Likewise, feel free to share your additional opinion thoughts, suggestions, recommendations, or even questions in our comments section below. After all, in order to stay ahead in your line of business use all these online banking platform key aspects.