In this modern day of technology, the banking industry is becoming more complex, competitive, and has it’s own unique set of technical prerequisites surrounding data management. Operational challenges, volume of data, and security to name a few that go hand-in-hand with the banking industry offering more activities and services. Many banks have large branch networks, sometimes-even thousands of them, spread across the globe to serve their clients and they need to maintain strict secrecy about customer affairs, along with adhering to stringent regulations.
Let’s not forget industry demands of real-time, data-enabled decisions for better decision support and growth opportunities. Banks must also improve operational efficiencies like integrating cash and financial management processes into a comprehensive system. The right strategy and tools will enable businesses to build greater customer loyalty despite competitive disruptors like non-traditional providers, optimize how people and technology interact to drive better outcomes, and implement measures to protect customer data and remain compliant. That’s why the industry leaders are choosing innovative ERP systems to meet their banking challenges.
An ERP solution can reduce overall operational
costs by 23% and administrative costs by 22%
What is an ERP system?
ERP software applications help synchronize and integrate the widespread financial processes, human resource management, and support services. ERP software applications practically touch all functional areas that define any effective banking system. In other words, it’s software that runs daily activities such as accounting, project management, risk management, human resource management, supply chain operations and much more. Pulling together all these activities across sectors in a much easier way than in the past and helping to consolidate reporting across the board.
What are the benefits of using an ERP system in the banking industry?
1. Better integration of financial Data
A great benefit of an ERP system is that it’s fully integrated which allows banks to run their entire operation within a single system. This helps to reduce costs by eliminating the need for spending money on maintaining and upgrading different systems. It can also save you a significant amount of time because you and your team will no longer have to manually cross-reference and re-enter the same data into multiple spreadsheets and systems. Additionally, with the right ERP solution, you can choose various business apps which together will create a system that is entirely tailored to your company’s needs
2. Reduced cost and complexity
Did you know that 95% of businesses say they have major operational improvements after implementing an ERP? The improvements include reducing process times, increasing collaboration and centralizing data. An ERP system would also help you save on operational costs and cut down the overall budget. With disparate systems, IT teams must invest a lot of time and resources into maintenance costs, maintenance time, and direct or indirect labor costs involved with new software purchases, updating existing systems, follow-through on licensing agreements, and training. These older approaches to business systems often negate the option for scalability, especially when it comes to time and expenses. Due to all the processes getting streamlined and monitored, the eventual disruptions or breakdowns are more likely to be prevented or eliminated. This tends to help you save on some extra operational expenditure.
3. Improved time to market for new services
An ERP system can help a business deliver new services to customers faster and improve productivity. Additionally, performance is improved by developing the most efficient way to plan and schedule resources through using workflows that streamline business processes, carefully track employee performance, and analyze results. A modern system also fosters better customer communication through reliable lead, opportunity and tracking.
4. Increased efficiency
An ERP solution can increase efficiency two-fold of all the banking processes by integrating them into one single platform. You get fast and easy access to any required data across the entire bank and even all the departments. Furthermore, with automation of tasks, daily repetitive jobs, such as data entry, routing, or creating reports takes a fraction of the time and with a huge reduction in errors.
5. Enhanced data security
Security is another huge benefit. With state-of-the-art cloud based security, data breaches, ransomware, and hijackers are outdated. With the help of an ERP system, every single access point is monitored with ease, and consequently, the security level would be much higher than usual. Moreover, having ERP in banking industries also helps in the detection of any sort of suspicious or unauthorized activities as all banking activities would be available to the admin.
A modern ERP system is nothing short of an important asset for the banking industry. Read how Acumatica, the Cloud ERP helped solve problems for Seaport Capital, a private investment firm in New York. Then, check out Galeforce’s services for investment banking. We can help you!