Selecting the right core banking platform is a major step forward, but successfully implementing and integrating it in the cloud is the final significant step towards becoming digital and fully configurable with automated deployment. This step often proves to be a challenge for banks.
Cloud-native core banking is still new, but it is set to become mainstream. It increases efficiency, security and cost savings. You can refocus your resources to better understand and serve customers, rather than maintaining old technology or managing difficult integrations to legacy systems.
If you are an architect at a bank and you are considering adopting a cloud-native core banking system, what do you need to keep in mind?
1. Gather information and talk to other financial institutions
Immerse yourself in the fintech world and explore the opportunity of cloud-based banking. Why? Reading about it and talking to others who have already implemented cloud computing is a great way to know what options you have and what it brings you. It helps you to decide what the best solution for your bank is.
2. Finding the right partner
Finding and selecting the right partner is a critical element of making the switch to digital core banking in the cloud. Essential questions to ask yourself are: Is there a cultural fit? Is the platform based on modern, future-proof technology? Do they have an innovative character? Have they a proven track record? And can you connect with a fintech ecosystem to leverage fintech innovations and expand into new markets?
3. Perform a risk assessment
When you have found your partner, it is important to perform a risk assessment. Based on assessment criteria, examine the organization and the chosen solution to evaluate hazards and to determine whether the selected core banking system is the way to go.
4. Designing and testing workflows
You want to ensure your business processes are inline with the core banking platform. Therefore, it is vital to design and test workflows with your vendor. Creating a proof of concept is an efficient way to do so. It gives you the possibility to see and experience how a specific element works, to test demarcated functionality and to determine if the selected vendor can help you achieve your goals.