There are a number of reasons why the small and medium banks lag behind in the race of revenue growth, when compared to the large corporation banks. However, if one is to point out the most crucial reason of all, it would be the quality of the digital banking architecture. There is no denying the fact that digital transformation has become an essential aspect of the banking industry. Which is why it is quite shocking that several small and medium banks have not undergone digital transformation adequately, while a significant number of them lack digital banking architecture altogether.
As a result, the small and medium banks are forced to hire more accountants and cashiers in order to increase their man power. At the same time, user experience is getting seriously affected. So customers find it more profitable to switch their loyalty to the large corporation banks. The small and medium banks need to invest in developing a stronger digital infrastructure if they want to catch up with their competitors.
The excuse most small and medium banks give to explain their lack of quality digital transformation is fewer resources. It is true that most banks do not have the resources to develop their own banking architecture. However, today, there are a number of technology companies that help small and medium banks in this regard. These companies offer certain core banking architecture packages that do not put much pressure on the budget of the small banks.
One such core banking architecture package is offered through t24 core banking, which is sufficient to fulfil all the needs of a bank. However, if a bank thinks that they will not be able to set aside the budget for even a small banking architecture package, they need to opt for the open banking architecture packages that are available in the market. Although the open packages might not be as good as the paid ones, they are able to support basic banking systems.
If a bank decides to opt for open banking architecture, it must invest some time in research so that it can find an open banking architecture that will best suit its purposes. This research can be carried out both offline and online. However, if a bank believes in sustainable investment, it will drop the plan of opting for open banking architecture and will instead invest in quality architecture packages such as t24 core banking architecture. The amount it would spend in acquiring and installing such a package would definitely see a good return on investment.
