ERP (Enterprise Resource Planning) solutions have automated most of the Back-office operations for the businesses and it is a cost-effective option that empowers all businesses (from Entrepreneurs to even Big Business houses). Now, with the latest trends in technology and evolution of AI/ML, ERP is covering a larger canvas to offer even further Front-office tasks & integrating with other periphery systems such as (CBS) Core Banking System, anticipating CAGR of more than 10 percent in the ERP market over the next few years, to reach $78.40 billion by 2026 as per Allied Market Research.

Enhancements in CBS

Banking Software has transformed to a large extent after Y2K from a standalone ALPM, ABB (Any Branch Banking), TBA (Total Bank Automation), and now the CBS (Core Banking System). Today CBS’s system is well integrated with other internal software used within the Bank. Right from Customer Onboarding systems, Credit score, Early Warning, recovery to Collection management systems are now integrated with CBS to extend comprehensive functionality.

Evolution of ERP

ERP systems have transformed small/medium/enterprise businesses over the years with automated workflows & core back-office functions. As mentioned in the beginning, the recent enhancements in ERP have extended the scope & functionalities to business intelligence that can also handle front-office functions like eCommerce, sales, and marketing automation.

The Next Step: Integration of ERP with CBS

While Gartner notes that integrating ERP systems with other data “has become an increasingly high stakes endeavor”. Today, we are talking about Single-sign-on (SSO), Single Window concept, One-stop-shop, etc. In nutshell, the technology is leveraged to interface among the systems which are beneficial for internal as well as external users. Today, ERP systems have offered automated workflows, order processing, billing, etc. which has been a great benefit for every business. Since ERP systems are adopted by small retailers, Wholesalers to Enterprises, it is imperative to know, are ok with the current features of the ERP solutions available or they need more? Do ERP systems need to integrate with Core Banking System as well to cover Operations 360°?

Earlier, integrations with 2 core systems were not that easy and feasible economically & operationally but now, leveraging on API-based integration is easy, quick, reliable, and secured as well without devoting significant time and resources to building and maintaining the needed connections. The integration also ensures a security framework, swift exchange of data, and keeping the level of confidentiality intact.

Benefits of the integration

Business wants to optimize operational cost and maximize profits even in pandemic-like situations. Integration of ERP with CBS extends multiple benefits to the Organization. Just imagine the level of simplicity & eliminating redundant tasks, the integration can extend to the user.

• Single Window – Payments to the vendor are a business credential. The delays due to paying by cheques or via Internet Banking can be straightway bypass. Users can pay or get paid through their ERP software only by connecting their bank accounts with the ERP system and using various payment modes like NEFT, Cheque, and DD, etc.
  
• Reconciliation – This is the pain area at every business entity, small, medium, or big. The Payment recon is a manual process still at most of the places. As the business grows, it is difficult to do it manually. With the integration with CBS, the transactions posted in the ERP software by the users are automatically reconciled and are reflected in their bank account statements. So the discrepancy that results in most of the time due to mismatch between the transactions entered in ERP with the Bank account statement, is nullified. This is a big relief to the business.
  
• Swift Pay-outs – The routine payments such as Salary/ expenses can be processed directly from the ERP to CBS. The payments can be directly made to respective accounts even with the respective deductions computed by the ERP system. So this eliminates duplicate work & processing. 
  
• Invoice Processing – Today organizations are working on faster TAT (Turn-Around-Time). Many times due to manual dependencies, approvals create delays. Now with the integration of CBS & ERP software, just add/ register respective payees with their Bank account details and make the payments via various options made available by the Bank such as UPI, IMPS, NEFT, RTGS, etc. Even the regular payments can be scheduled from a single interface.
  
• Better Control – The integration offers consolidation & eliminates redundancy to offer better control over the business operations. This also encourages cost-effectively minimizing fraud-prone areas.

You are an entrepreneur or a large business house, this is the way forward. This approach extends better productivity through single Data entry up to GL level. Adopting an ERP software that offers CBS integration shall reduce the operational cost to a large extent and extend the benefit of focusing on Core activities of the Business. So while choosing an ERP software or migrating to a new one, for your business, customers should ask for integration with CBS.

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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.