Digitalization of the banking system had started almost a decade ago. Today, it would be very difficult to find a single bank which is not yet digitally transformed. However, it does not mean that all banks are able to maximize the value of digitalization. In fact, there are only a few banks which can boast of a strong digital banking system. The only reason behind this low proportion of quality digital banking systems is the lack of good core architecture.
It is not very difficult to understand that the most important pre-requisite for a banking system to be termed as good is the stability of its core architecture. If the design of the core architecture is good, the banking system can be configured according to the demands of the market. On the other hand, if the core architecture is not strong, any changes in the banking system would render it unstable, leading to loss in operations and subsequently, harming the goodwill of the bank. There have been a number of such instances.
Banking software are characterised by heavy usage. Therefore, it is imperative that the core banking architecture is robust enough to handle the load of massive transactional dataflow. So, every bank must look for the best architecture designers in the market while developing their software. The good thing today is that there are a number of software development companies which specialize in the domain of architectural designs.
It is ideal to hire one of the architecture designing firms which have been operating in the market for a few years. This is because experienced architecture designing firms lay great emphasis on the activity of testing, which is an important aspect of digital transformation. Testing with quality assurance is extremely important for the successful implementation of core banking architecture as it forms the base of a banking system, which deals with loads of confidential data. So, even if a small bug emerges in the system due to weak architecture, the bank might run into heavy trouble and face financial losses. So, it is always advisable to go for the agencies which can provide a quality core banking architecture.
The only issue with good architecture designing firms is that they demand a lot of money for core banking solutions. The cost is definitely one of the reasons why many banks fail to go for the installation of quality banking architecture. But the banks should understand the fact that the cost they would incur for a good core banking architecture is an investment rather than an expense. The returns of this investment would keep coming for decades to come.
