A bank’s core conversion software manages all key transactions, including deposits, withdrawals, loans, and bill payments. Banks should periodically review their current software system to determine whether or not it is running at peak efficiency. After reviewing its banking core software platform, a bank might decide to undergo a core conversion to replace its current software with a more modern version. Reasons for choosing a core conversion include:
What Is a Core Conversion?
- The outdated banking software system doesn’t allow for expansion and growth.
- Monthly or yearly unexplained increases in costs make the existing system too expensive.
- The current core banking software cannot merge with other systems.
- Making improvements is difficult due to the timing and cost of making changes.
- The current system has possible risk or compliance issues.
- The outdated software is complicated to use.
- The existing platform has difficulty managing current workflows.
- The customer service is poor or non-responsive.
Why Is Core Conversion Important?
Technology is always changing and expanding. As it grows, old banking software systems become obsolete, requiring banks to upgrade their systems. Core conversion upgrades provide banks the flexibility to offer fully customized products and services to meet the demands and needs of customers. Some benefits of a core conversion include:
- Improved functionality: When you upgrade to a new core banking software, you get new banking software systems with better features and functionality to serve customers better.
- Better customer experience: Banking core software also gives customers a better experience by making it easier and more efficient to access their accounts online or on their mobile devices.
- Increased agility: The banking market is constantly evolving, and banks need to be able to keep up. Core conversion software allows you to adapt easily to these changes.
- Enhanced security: Newer core banking software systems have better security features, including advanced encryption protocols to guard against unauthorized access or breaches.
- Improved reporting and analytics: Core banking software gives you more insight into your bank’s success with detailed reports and analytics. Use this information to help you make data-driven decisions for bank growth.
- Compliance: Easily comply with regulatory requirements to ensure your bank is in compliance with all reporting agencies.
- Better risk management: With new core conversion software, you can better manage your bank’s credit, market, and operational risks.
The need for core conversion software became evident during the pandemic, as it created a greater demand for online and mobile services. While many banks offered some forms of remote banking, the demand for online services to open depository accounts and start loan processes online grew. Customers no longer wanted these services or could no longer walk into a bank to access them. Software conversion has since become necessary for all banks to keep up with demands and improve customer experience.
Custom Core Banking Software for Every Institution
Every bank is unique, and many need specialized software solutions for their specific needs and clients. BMA offers custom software solutions for every financial institution. BMA provides:
- Industry-leading services
- Software that is easy to understand and use for both clients and their customers
- Safe and secure solutions
- Open architectural technology that provides the opportunity to integrate
- Core processing system that continues to grow with you as you expand your institution
- Customized pricing to provide affordable processing solutions
With over 35 years of experience, BMA can complete a core conversion with minimal interference to your financial institution. The entire process takes between 6-9 months, depending on the needs of the bank. Much of the work will be done by BMA, but the bank is always involved to make sure that the correct products and services are implemented. Request a discovery meeting today to learn more about how BMA’s core banking software can help improve your institution’s financial services.
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For over 30 years, we’ve built lasting partnerships that keep financial institutions ahead of the technology curve.
