Today, the entire Banking Industry is witnessing constant growth with a wider spectrum of products & services. Customer expectations are increasing day-by-day in terms of services & faster TAT (Turn-Around-Time). Banks are adopting internal process automation and quick processing standards to attend to the expectations with maximum cost optimization. Similar to the consolidation of Banking products & services, Banks are also in process of implementing ERP systems for their internal activities to attend equal consolidation of non-banking operations.
Typically, ERP (Enterprise Resource Planning) systems are software that empowers organizations to automate their various daily operations & activities such as HR Management, Supply-Chain activities, all Management activities, Vendor Management, centralized MIS, etc. Adoption of such an ERP system in a Banking environment is the need of the hour as non-Banking Data is also increasing exponentially.
Non-Banking operations are equally growing
As the Banks are extending multiple products & services, the non-Banking Back-office activities need digitization for better management. ERP systems are designed with operational & technical feasibilities so that they can digitize existing operations.
1. Benefits of an ERP System in a Bank
a. Organized Operations
ERP software allows better Data Management in an Organized manner. Organized Data can trigger many vital data pointers in Business Decision Processing and overall management.
b. Work Efficiency
Execution of various pre-defined workflows makes life simpler for the employees as they can achieve the desired results quickly. This could lead to better work efficiency since the satisfaction index goes up
c. Smooth Collaboration
As mentioned earlier, with defined workflows, inter-department activities can be well-coordinated with fewer frictions and better information exchanges. In a distributed environment like Bank, such a better collaboration is essential with increasing workloads and standardization requirements.
d. Data Management
As Data volumes are increasing day-by-day, it needs an organized approach. This leads to generating various vital inputs for various Dashboards for analysis & decision making.
e. Operational Costs Dropped
An ERP system can also help you save on operational costs and cut down the budget. All processes are streamlined and monitored, therefore the eventual breakdowns or disruptions will be prevented or quickly eliminated. Addressing any occurring issues will be much easier and faster and this enables to save on operational expenditures
f. Compliance made easy
Banks are governed by the regulator and so the compliances. Today regulators are enforcing various standards, processes & reports for better control. Adhering to all these standards and make the data available as & when required, can be very well addressed by ERP Systems. This would be a great relief for the Management to ensure better control.
g. Integration with Core Banking
This is the way forward. The integration of an ERP system with Core Banking systems can very well address many challenges. This will have a greater impact on the overall management of the Bank especially the activities related to Planning & Operations.
h. Budget Control
If the data is well managed and made available to key Dashboards, it can give some better insights in terms of budget availability & utilization. ERP systems do provide such platforms & features to implement.
2. Which ERP Solution suites your Bank?
With such extensive benefits, Banks are keen to implement ERP platforms but at the same time, Banks need to have a proper baseline and understanding of requirements.
The decision should be well dependent on key parameters like the scope of operations, workflows available & of course the commercial impact.
The Banks should narrate a proper implementation plan for the migration so that the transition should not have any business impact.
3. Efficiency & Profits can be maximized
The Banks need to focus on every attempt of maximizing efficiency and increasing profits. A thoughtful execution of an ERP solution can achieve the desired results and enhance the Bottom line.
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Global iTS is a leading Microsoft Dynamics 365 ERP and CRM Partner, headquartered in the UK. With 300+ clients, successfully proven implementations, an excellent support system by our experienced domain specialist, and a good track record of customer retention. Also, it has a strong foothold and customer base across other GCC countries (Bahrain, Saudi Arabia, Oman, Kuwait, UAE, and Qatar).
Global iTS is mainly into the specialized requirements in Financial Services and Insurance sectors focusing on Digital Transformation journey in Retail Banking, Commercial Banking, Insurance Providers, Private Equity, and Investment Banking by bringing Artificial Intelligence, Machine Learning, Blockchain, and Robotic Process Automation technologies and enhanced their productivity and profitability. We bring in over 15 years of international expertise to digitally transform any aspect of a client’s business.
