In the last few years, a very disturbing phenomenon has been noticed in the banking industry. Until the last decade, a large number of big, medium and small banking enterprises were providing services in the market. Today, however, the number of medium and small banking enterprises has reduced drastically. Only the big banking corporations seem to be ruling the market. Most of the medium and small banking enterprises are either getting acquired by the large banking corporations or are being forced to diversify their operations to other businesses. According to experts, the medium and small banking enterprises are unable to compete with the large corporations for a number of reasons. The most prominent of these reasons is the quality of digital banking architecture. It might sound very surprising but it is a fact that a significant number of small and medium banks have not undergone digital transformation. This is not only forcing the banks to hire more accountants and cashiers but is also worsening the experience of the users. Since the beginning of the digital decade, banking customers have started preferring the corporation banks to the small and medium banks. This is because of their comparatively poor service which is a result of their poor focus on developing strong digital banking architecture.
However, the blame of not undergoing digital transformation cannot completely be put on the small and medium banks. This is because the whole exercise of digital transformation is quite expensive and at the same time, the returns from the exercise start showing only after a few years. There are a few core banking software’s available in the market which offer to provide their services in instalments. Quite a few medium banks have started opting for such services but improvement is definitely needed in this area. The good thing is that most small and medium banks have realised what they lack and have started taking steps towards digital transformation on their own. Nowadays, there are a number of technology companies who are selling ready-to-install open core banking software at low prices. The open core banking software is actually a means of marketing by the core banking software companies. There is, however, no doubt that the small and medium banks are benefitting from it. Although the open core banking software is unable to conduct many banking operations, their usage does provide the small and medium banking enterprises with an idea about the operations of core banking architecture. Going ahead, the banks can opt for developing their own in house core banking architecture.
If any small banking enterprise is looking for an open banking architecture package, it should opt for the ones which are provided by the reputed core banking software companies such as t24 banking software instead of going for the ones which are freely available in the online software market.
