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Things you didn’t know about banking technology

Banking technology is continuously evolving to respond to the desires of a wildly tech-savvy consumer base and the challenges that equally tech-savvy criminals pose to banking security. Common concerns of both bankers and their customers get some needed reassurance from a nifty list of 50 things that members of both groups may or may not know. For this article, we list the most compelling, in our view, for your consideration.

Mobile Banking App
Mobile Banking App
http://www.impactlab.net/wp-content/uploads/2014/04/Mobile-Banking-.jpg

Great Things to Know about Banking Technology

  1. While transaction processing looks good, in general, usable information for bank operations is only 30% complete.
  2. Bankers and IT technicians tend to see things from the opposite perspective: bankers look at functionality. IT looks at system architecture, but don’t actually make decisions about software procurements.
  3. No matter how great the loan system, without a manual, users will be lost.
  4. If you’re considering a core system change, the best determinant is an independent consultant that documents significant (say 200 or more) debilitating deficiencies in the current system.
  5. There are no discounts in banking technology; you get what you pay for.
  6. Only 80% of the top tier banks (125) can afford the best commercial loan system.
  7. Banks need to charge customers for free mobile services, perhaps by selling advertising to customers.
  8. A dedicated IT person, who performs computer system-related audits, is essential for any bank even if that person only works part-time. Contrary to popular belief, neither bank auditors nor external auditors are handling this.
  9. 200 financial institutions determine their core system is inadequate and replace it each year. Small banks are the largest financial institution group to make the jump.
  10. Dissention isn’t always bad; ask the tech scrooge at the company to write and submit a confidential critique for upper management.
  11. In this vein, pay close attention to why a tech vendor objects to a project, the best don’t always agree to every request.
  12. Tech vendors are more likely to offer more support, the more self-sufficient you appear to be.
  13. Document all vendor events.
  14. Give it to them straight: tell the CEO and CFO about any IT issues – honestly.
  15. Integration should be 85% among key applications.
  16. The rationale for integration goes:
  • uniform application rules
  • relatively easy vendor software maintenance
  • eliminates interface maintenance, redundancy of maintaining foreign ancillaries, and proprietary data silos
  • better customer understanding
  • Updates are made one time and relationships automatically feed
  • Easier and more accurate ad hoc retrieval
  • financial accounts are consistent in their status reporting throughout the organization

If done right, loan decision integrations of origination, to processing, to lead management (and CRM) can be seamless, making any loan scenario immediately transparent and boosting loan quality. Simple interfaces deliver vital information between systems and bi-directional integrations minimize unnecessary complexity that can hinder usability in multi-technology settings. Compliance and data accuracy are also aided by the clear and consistent information distribution throughout the workflow.

Sources:

"Solutions LoanDecisions Integrations", LoanLogics, http://loanlogics.com/integrations.html

"Good Things to Know About Banking Technology", Finextra, http://www.finextra.com/blogs/fullblog.aspx?blogid=9290