Does Banking-as-a-Service (BaaS) sound like a buzzword? Gartner disagrees. According to the Gartner Hype Cyclefor Digital Banking Transformation report published in September 2022, it’s poised for mainstream adoption by 2024.
Digitalization is driving a major shift in the banking industry and the adoption of cloud-native core banking systems is playing a key role in this transformation. These systems are designed to be agile, scalable, and secure, allowing banks to adapt quickly and easily to changing customer needs and market conditions.
In the quest for a suitable core banking solutions provider, it is imperative to consider a plethora of vital factors. These considerations play a decisive role in determining the overall efficiency of the system and in preventing any potential drawbacks. Here are some important factors to keep in mind:
Real-time core banking systems allow banks to provide services to their customers on the spot. A real-time core banking system processes transactions immediately as they occur, rather than batching them together for processing at a later time. This allows customers to access their accounts and conduct financial transactions in real-time, from any location and at any time.
This can be beneficial for small banks in several ways:</p