WHAT IS CORE BANKING SOLUTION AND ITS ADVANTAGES TO SACCOs?
Saccos have been having a rough time over their years in providing members with quick and convenient services. Automation is the ultimate solution for them to be able to overcome their challenges and build business resilience.
Core banking solutions are the centralized systems for financial institutions that are responsible for ensuring seamless workflow by automating the frontend and backend processes.
In simple terms, it’s the main engine that automates the day-to-day activities within the SACCO, MFI, or a bank.
What advantages will SACCOs have using a core banking solution?
- Improved employee efficiency
Most African Cooperatives conduct their daily activities manually which is prone to human errors and consumes a lot of valuable time.
Core banking solutions are a great introduction in this field as they help to make the banking processes efficient by automating multiple banking processes, reducing manual work, and raising employee efficiency significantly.
Core banking systems have helped SACCOs benefit from improved employee productivity. This has also helped some equip themselves better in offering a new range of products to their members.
- Improved decision making
The introduction of automation in SACCOs has made accessing and managing the data really simple. With the centralized database, cooperatives now can collect all the necessary data quickly. This gives them immediate access to analytics.
Core banking solutions generally have business analytics integrated into them. So, the data collected in the backend can be easily accessed and used to get valuable insights on time.
- Reduced operational costs
The adoption of core banking solutions has reduced the operational and support expenses of the banks to a large extent. With the ability to offer services through multiple channels like internet banking and mobile banking, customers now don’t need to visit the bank branches. This has enabled the banks to save big on infrastructural and operational costs.
This decreased footfall in the branches also allows the banks to handle a large number of customers with ease. Operational effectiveness in terms of faster processing of transactions and loan processing has also resulted in a reduction in operational expenses. Also, the automation of services has enabled the banks to serve their customers better and have a positive relationship with them.
- Improved customer experience and loyalty
Core Banking Solutions enable the SACCOs to provide exceptional customer services. It not only allows customers to access their accounts from any interconnected branches – but it also gives the members a chance to manage their bank accounts any time during the day from anywhere in the world.
With easier transactions and transparent banking experience, SACCOs are able to retain current members, attract new ones and expand customers’ relationships beyond transactional experience.
Core Banking Solutions have enabled cooperatives to come up with customer-centric financial products and services and move away from traditional, complex, and sluggish manual banking processes.
- Eliminates fraudulent activities
A good core banking system comes with high-level security features and anti-money laundering features.
This saves SACCOs from losing revenues through fraudulent activities which leads to losing their members due to trust issues.