Choose the Right Core Banking Partner

person using banking app

When it comes to choosing the right core banking partner, there are many things to consider. This is especially true when it comes to the rapid improvement in technologies. But replacing a banking solution is no easy task and can be a risky undertaking.

What is Core Banking?

In the simplest form, it’s the software used to support a bank’s financial transactions such as deposits, loans, mortgages and payments, which helps the bank balance its general ledger. These services are available to the bank employees and the bank customers across multiple channels like ATMs, Debit Cards, Online Banking, Mobile Banking and branches. The goal of core banking solutions is to make the interactions seamless for the customer and efficient and cost-effective for banks. You can read more about core banking here.

Why Switch Core Banking Solutions?

Most banking institutions have been in business for decades and are tied to legacy core banking systems. These legacy systems are typically mainframe-based platforms and are often limited in their ability to interface with other systems. This can restrict a bank’s ability to quickly and efficiently offer new products, services and experiences for their customers. That means it’s important for banks to transition to improved core banking solutions like what we provide at Smiley Technologies. But transitioning to a new system can be complicated and even risky. That’s why the core banking solutions a bank chooses, must provide risk mitigation during the migration process.

Mitigating Risks

One of the major things to consider is the risk of migrating platforms. Your bank’s biggest risk is not being able to properly and seamlessly implement your bank’s strategy for growth and profitability. We’ve solved for that problem and done away with the software spaghetti mayhem that increases risks and reduces customer satisfaction.

We founded Smiley Technologies on experience and an understanding that banks will ultimately become frustrated trying to build their business without the support of nimble and competent information technology systems and professionals. In order for banks to remain competitive, they’ll need to adapt to new technologies that allow for efficiency, improved customer satisfaction and cost effectiveness.

It might be a risky undertaking to migrate to new systems, but it’s riskier to remain tied to legacy platforms. And when you’re working with the ideal core banking partner, those risks can be greatly reduced. And, we believe that bigger isn’t always better. If you want a core banking solution that adapts to your needs, consider a smaller, more agile company who can quickly adapt and remains on top of current technologies and trends.

When assessing any vendor partner, it’s important to examine the following risks:

  • Financial Risk – It may not seem important, but when looking at a core banking partner, it’s good to understand their financials and what they represent in terms of growth. You want to know that the partner you choose uses their finances wisely. And this is something we pride ourselves in at Smiley Technologies — strategic growth.
  • Management-Depth Risk – Is there depth in the management team? While a management team is critical, you want to be assured that if someone in management were to leave, it would still be business as usual for you. At Smiley Technologies, we strongly believe that if we experienced a loss in management, the company would easily be able to continue as we make it a practice to hire in advance of needs, making a disaster manageable. 
  • Data Security Risk – With new core banking systems, much of a bank’s operations happen through use of technology and cloud-based systems. It’s crucial that the core banking software protect against data security risks like malware, unsecure third-party services or unencrypted data. Our take is that simplicity matters and that can be seen in our network and software diagrams.
  • Technology Obsolescence Risk – This is the risk that the technology used or developed will become obsolete. And with rapid advances in technology, this is a real risk and a large industry problem. Being agile and quick moving means Smiley Technologies can quickly adapt to avoid technology obsolescence.

When You Choose Smiley Technologies as Your Partner

Choosing a core banking partner is like a marriage. It’s impossible to deal with all risks and contingencies in advance; therefore, both the bank and the partner must enter into this arrangement with a foundation of trust. Smiley Technologies wins hands down on this risk factor.

When it’s time to choose a core banking solutions partner, we’re here to learn more about your unique needs.

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