This article explores the revenue generation benefits and three value levers associated with core banking transformations—customer satisfaction, cross-selling, and product and service innovation.
When it comes to justifying a core modernization program, banks need to look at more than just reducing operating costs and risk, and improving operational efficiency. They also need to consider revenue generation.
A renewed or replaced core platform can offer many benefits, including:
Opportunities for cross-selling related products and services.
Reduced time-to-market for new products and services.
Ability to tailor products to customers’ needs and to adjust pricing accordingly.
Improved customer satisfaction by delivering customers an always-on, always-relevant banking experience.
The bottom line is that a core transformation is much more than a cost-cutting and compliance strategy. In fact, half or more of the benefits can be revenue related. For many banks, that insight might make the cost-benefit analysis of undergoing such a complex, expensive project much more attractive.