Banking Software Overview
What is Banking Software?
Banking software supplies the infrastructure to build, deploy, and administer financial products. Additionally, banking software stores account-holder data in compliance with local law. It also handles financial transaction processing and accounting. Finally, banking software is responsible for the look and feel of online and mobile banking, customer self-service portal, and other customer interactions.
Top banking software vendors are sophisticated in banking as well as software. They offer design consulting and understand the stringent compliance needs of financial institutions. Top banking software vendors emphasize flexibility and customizability, to suit personalized customer experiences and financial products.
Beyond common features of banking software, banking software vendors offer platforms tailored to the needs of different kinds of banks (e.g. retail, corporate, etc). And banking platforms may provide non-banking specific features, like marketing content management, or marketing distribution. This is of use given the compliance concerns present in all aspects of finance and banking.
Banking Software Features & Capabilities
Features common to core banking software are:
- Real-time account & transaction processing
- Financial product builder
- Customizable interface and product workflow
- Customer self-service portal & management
- Online payment processing & bill pay
- Source capture & remote deposit
- Customer interaction (e.g. live chat)
- Account-holder transaction history tracking
- Account-holder data & document store
- Multi-currency funds management
- Financial instrument workflow
- Accounting workflow
- Mobile app development
Banking Software Integrations & Ancillary Products
Because of compliance rules peculiar to banking, banking software vendors offer suites of ancillary products. These may cover the business needs for specific kinds of financial institutions. Some modules and add-ons from popular vendors cover:
- Fraud risk management
- Financial crime mitigation
- Line of credit & credit background check
- Loan origination & servicing
- Corporate supply chain financing
- Customer wealth management
- Investor servicing & accounting
- Enterprise content management
- Marketing resource management and automation
- Banking investment & operational intelligence
- Support for Islamic banks
Because banks vary widely in size and specialty costs of banking software vary in the extreme. Few banks meet their needs with simple subscription-based offerings. Banking software tends towards very high modularity and pricing depends on the breadth of modules and services required, as well as licenses and installations.