Unlocking data in core banking

Published on: February 10, 2022

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Data management is a broad concept. In essence, it's everything that involves the storage or use of data within a platform, and in core banking systems is a critical aspect. 

In today's digital age, data has emerged as one of the most valuable assets for businesses across various industries. The banking sector, in particular, has witnessed a significant transformation with the advent of technology and the integration of data-driven solutions.

What is its importance in core banking ?

Core banking, the backbone of banking operations, has also undergone a paradigm shift by harnessing the potential of data. In this blog, we will explore the value of data in core banking and how it is revolutionizing the industry. Effective data management practices are essential given the vast amount of data generated and processed within this environment. Those practices include ensuring data availability, accuracy, security, and compliance of data. It enables banks to leverage data effectively, provide personalized services, make informed decisions, and meet regulatory obligations.

One of the big aspects of data management is to unlock data to other systems. These could be front-end solutions for the end client or the bank employee or third-party applications. For example, CRM systems, collection solutions, and others. There are several ways to unlock data in a core banking system

So no matter what, you need to have access to your data at all times, and we understand which data makes good reporting. Our core banking system, offers three ways you can unlock your data. 

Data events.                

°neo uses data events to notify the users of changes within the platform. So for example when you create a loan, a data event notifies the user that a loan is created. You can use a data event to automate processes or to integrate other systems into the platform.  When you create a loan, two people should approve it. So this needs to be notified to the person that needs to approve it. And once the approval is in place, this needs to be notified to the rest. This way the loan can be disbursed and other tasks completed. These actions are initiated by data events.  

A data event can be triggered on all levels: loans, persons, changes in personal data. Pretty much anything can create an event. 

API & reporting server.

Data events are just one way to unlock data from a system. Two other ways that are used in neo are via API and via the reporting server. These three ways all have their specific type of use. The events mainly serve to pick up changes in the platform. One can subscribe to a certain type of event and connect actions to it.

The reporting server, for instance, offers a data set as a copy of the master data as a singular data file. It works best to provide large amounts of data for daily, weekly, or monthly analytics, and management reporting. It is a data snapshot. The third way is the more commonly known API. These APIs are used to keep direct communication with the platform. 

The best experience.

The question now is 'why would one offer three ways to unlock data?' Theoretically one could retrieve any data using an API. However, if the applies reporting is not user-friendly. It would be a hassle to retrieve all the data via API. But via our reporting server, it is a lot easier to make the reports.

Using a reporting server for the front-end portal would not guarantee the up-to-date information you would want for your customer interaction. So to provide the best experience in any given circumstance, the core banking user is best served with a variety of data access methods. 

Want to learn more about core banking? Download the Next-Gen Core Banking Guide  and explore how modern core banking platforms can bring your financial services to the next level. 


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