Guide:
Top 20 Core Banking Solutions for SMB Banks
The rapidly evolving landscape of digital banking poses unique challenges for small and medium-sized banks, hindered by high costs and the complexity of integrating new technologies into existing systems. Learn more about key challenges with launching banking platforms for mid-sized and small banks and how to overcome them. Discover the top 20 core banking platform providers.
Author: Alena Tomchuk
Last updated March 29
Contents
Introduction
Small and medium banks are important in the fintech field. By July 2023, the value of publicly traded fintech companies was $550 billion. This was double their value in 2019.
These banks also fill a crucial role in America's finance system. As of December 2022, there were 4,001 community banks with more than 27,511 branches across the US. They serve close to 1,400 counties that have populations below 50,000, attending to over 28 million people.
They also provide jobs for over 136,000 workers within their communities and possess assets worth USD 860 billion overall. These facts highlight how small-sized, mid-sized and community banks contribute significantly to both the fintech industry as well as the wider financial scene.
However, small and mid-sized banks are facing multiple challenges today. One big problem is not having enough finances to put into high-tech systems. Without this, they struggle to keep up with the digital needs of customers.
Other companies that focus on financial technology also pose a challenge. With their quick changes, customer-focused ways, and new ideas, these ‘fintechs’ often lure away the bank customers. Due to this, small and medium banks feel forced to hurry their own shift towards digital.
Following regulations also adds another layer of difficulty for these banks. The network of regulations can be heavy for smaller institutions who don't have many resources at hand. To comply with these regulations requires much time, energy and finances - making budgets even tighter than before.
Customers' choices and preferences also continue changing, which poses another challenge. They want banking services that suit them, are easy to use and safe. To give customers what they want, banks have to know what they need. Banks also need strong online banking systems and must always work on making it better. For smaller banks, these needs can be hard to meet.
Despite the challenges, mid-sized and small banks also possess distinct advantages. They have a lot of customers who trust them and prefer their services. This can help a lot when the bank wants to innovate and introduce new methods.
Small and mid-sized banks can do banking business legally. This edge puts them ahead of new tech companies in finance, which often need to get permission to operate from regulators.
Lastly, being smaller might be helpful as well. Larger banks sometimes work slowly because there's much paperwork involved and decision-making takes time, but this is not the case with small or medium-sized banks because they are more flexible. This helps them stand out from competitors by keeping up with changes in market trends.
To sum up, even if it's tough sometimes, smaller banks are ready for the challenges of the ever changing world of digital banking.
Key Challenges
The world of digital banking is changing rapidly. Small and medium-sized banks face many unique challenges. These banks want to use more digital tools but often can't due to high costs. Adding new technology can also be complex, as it must fit in with old systems already in place. This complexity sometimes makes these platforms hard to tailor for their customers' needs.
Shockingly, customer support issues only add fuel to the fire, directly hurting the users' experience and making change even harder for these banks. In truth, it's a tricky road that small and mid-sized banks need to walk, in order to reach great heights in this digitized banking environment.
Cost Constraints
Small and mid-sized banks face trouble building banking platforms because of cost problems. These banks often spend a lot more on transactions, and their investments don't always pay off well. This riskiness makes lenders wary. For example, in Nigeria, only 15% of small businesses claimed to have bank loans or credit lines.
The rise of technology being used in the finance industry increased the speed at which interest rates become market-based. It made borrowing costs higher for commercial banks, making it tougher for these banks to cover their own costs or invest in new tech tools.
Yet the picture is not entirely bleak as there's help from some creative programs - one such effort is the Small Loan Guarantee Program by International Financial Corporation that is providing loans to small enterprises. Even with this support though, high development costs continue to be an obstacle faced by many small and mid-sized banks.
Integrations
Mid-size and small banks often find it tough to integrate various financial services. This is a major challenge when they are creating their banking platforms. Because these banks usually have fragile business systems in place. Their capacity to store and gather data is also quite limited.
Upgrading the loan origination systems or Management Information Systems (MIS) presents another hurdle for them. It's difficult for them to move from MIS to core banking solutions efficiently. A key reason behind this struggle involves their existing architectures which lack crucial connectivity with third parties - an essential element that promotes innovation.
Here's an example explaining this issue: McKinsey highlights that one leading bank had no choice but to spend immense resources on a two-year program just in order to deliver its customers a combined view of savings accounts as well as investment products.
Excessive Complexity
Another challenge is excessive complexity, which makes it difficult for mid-sized and small banks to build their own banking platforms. The difficulties come as they rely on outdated systems. These old systems can't cope with modern regulations.
Case in point, smaller banks are backward by about ten to fifteen years technology-wise. Business handling becomes complicated for them due to uncertain reorganizations within.
For example, it was revealed that nearly 70% of these banks were analyzing their core banking platforms due to worries regarding the limitations of their technological structure.
This added intricacy not only disrupts good customer service but also amplifies operational costs for these institutions. And so, an immense hurdle is created by this unbearable complexity for mid-sized and small size institutions as they strive towards building efficient and financially viable channels.
Lack of Flexibility and Customization
For small and mid-sized banks, creating banking platforms is not without hitches. A major issue dwindles around the lack of quick flexibility for changing needs. This is because of the challenging needs of small businesses from their financial cohorts. Whereas, the returns these enterprises offer are limited; hence managing changes can be tough for banks.
Small businesses anticipate top-notch service just as colossal corporations do - leaving banks with an uphill task to craft tailored solutions. The requirements of SMEs on small to mid-sized banks add to complication - as they hang between retail and corporate banking sectors.
Meeting this challenge seems daunting, but possible! Banks must streamline processes, bolster relationship management in addition to coming up with novel products or services fitting into SMEs changing scopes.
They can also integrate digital mediums and mass customization, which could provide SMEs with effective serving and would also allow banks to stand tall amid competition and create innovative ideas in the banking industry.
Customer Support
Customer support is tough for medium and small banks building a banking platform. The banking sector is seen as costly, stiff, and slow to act. And customers want quick service, easy use, good interfaces and smooth dealings. Normal banks struggle with this.
Also, the growth of AI bots may mean call centers might go away almost completely. Bank branches may become fewer, and their function could change, too. These changes require spending a lot on tech tools and teaching staff how to use them, which can be hard for smaller banks.
Besides that, regulators are asking more from banks than just managing credit risk and meeting capital rules. The way in which they treat clients has also become important politically, adding another difficult part to customer support. So, dealing with these struggles while providing great client support, becomes crucial for a bank’s success.
Poor Experience
Small and mid-sized banks also find it tough to make user-friendly digital services. They need to offer consistent digital experiences for their clients at all times. If they fail, they can lose customers which means less money.
The rise of fintech and digital technology has made competition even harder. This pressure puts traditional banks in a difficult spot trying to keep pace with these changes. Also, turning towards the digital world demands huge investment in both tech gear and educating staff - something that smaller banks might not take on easily. Hence, despite the challenges faced by small and mid-sized banks, making an easy-to-use banking platform becomes critical for success.
Data Management and Analysis
In the world of banking, there are Four Vs of big data: Volume, Velocity, Variety, and Veracity. Banks deal with massive amounts of data daily from transactions and customer chats. Data comes in fast which supports quick decision-making processes. It also comes in many forms like transaction records or customer comments making it diverse to handle. Also, trusting this vast amount of important information is crucial for correct analysis.
In addition, experts predict that the big data market will rise astronomically from $138.9 to $229.4 billion by 2025 globally. This expansion links tightly to more data especially within the banking services sector. However, using an outdated system can cause problems when trying to collect, store or study high amounts of necessary data provided by such a significant growth rate; thereby posing risks for stability for individual banking systems. Thus getting ahead at managing huge amounts of various types of fast incoming information is very much needed for mid-size as well as small banks for creating successful platforms on their ends.
Meeting Regulatory Requirements
The rule book for small and mid-sized banks is also big. They need to follow many rules to set up their banking platform. The banking world is facing hard times because there are always new rules coming out. These rules make sure people don't lose money, keep the financial system stable, and stop criminal activities.
But matching the speed of these shifts isn't cheap. It needs big tech upgrades and training programs. For smaller banks, this can be a tough task. What's more is that regulatory bodies want banks to do way more than just looking after loan risks and funds needed against it. They also need to protect their data, stop frauds from happening and deal with interest conflicts head on.
Moreover, digital banking has also put forward new hurdles in following regulations like the introduction of electronic know your customer regulation (e-KYC). This regulation asks that banks must confirm identities and screen one's background for suspicious activities online. Complying with such regulations while setting up a banking platform poses quite a big challenge for small and medium-sized banks.
Competition from Fintechs
Small and mid-sized banks also face a big challenge from fintechs in making a banking platform. More fintechs and digital tech have come up, increasing the competition. Fintechs are quick, innovative, focus on customers' needs and don't carry old legacy structures that most traditional banks do.
Also, they mostly stay free of regular banking rules. Moreover, they change how banking products are sold by meeting customer needs better with faster processes. This stiff competition from fintech is challenging the earnings of normal banks' and lowering them in most instances.
In addition, these fintech companies were also able to cater for shifting client habits during the pandemic, proving their efficiency and readiness in challenging times. Because of this, it has become difficult for small-to-medium sized banks to build their own banking platforms.
How to Choose a Banking Core Platform
Selecting a digital banking platform is a difficult choice to consider for medium and small banks. It greatly affects how well they work and how happy their customers are. Banks need to take account of things like flexibility, working with different apps, following the rules, and being able to change things to suit them.
They also have to look if there's help available for learning the system, what it costs overall, what technology it uses, and if people find it easy to use. Each of these parts is important in figuring out if the platform will work for the bank. The bank has to make sure that its new digital services meet goals for its business while keeping up with what their customers want. Here are some important factors for banks to consider when choosing a digital banking platform.
1. Modularity
Modularity in digital banking helps smaller and medium banks a lot. It lets them try out new things and create fresh financial products fast. By using this model well, banks get three key things they want: ease of use, choice, and influence. This way, it takes only months to start offering new services. That's quicker than the traditional core banking systems which took months and years to make one product.
Additionally, modularity turns a bank into a place where different financial tools are sold. This allows banks to offer unique and niche related solutions. As of 2022, the worth of the digital banking market shot up past USD 9.4 trillion! And it is expected to grow at an average rate of about 3.6% till 2032.
Therefore, if any bank wants to stay ahead with others in this era where everything is getting digitized quickly, then modularity should be considered! That's what makes sleeker virtual banking platforms.
2. API Orchestration
API Orchestration plays a big role in picking a digital banking system. It lets banks control many types of customer contacts enabling them to work smoothly with other systems. With this automatic feature, new services and products can come into the market faster.
APIs help devices, applications and data connect better. They are becoming more common tools for bank strategies within the company and outside the company. Many experts agree that their importance has grown over the past two years and according to global surveys about 88% of respondents surveyed agree with this.
Furthermore, 81% see APIs as crucial for both business and IT jobs. Banks expect twice as many internal APIs by 2025 along with those used outside that helps them to integrate with other industries and companies as well. So, we can say that API Orchestration benefits digital banking platforms greatly in terms of speed and flexibility.
3. Regulatory Compliance
Complying with rules is really important when selecting a digital banking platform. It keeps all systems safe and up-to-date with the newest rules. By using the right tech, digital banks can make their compliance processes smoother, cut down errors made by humans, and keep up with regulatory requirements. In the field of banking, compliance often needs to be part of financial software solutions from the very beginning.
Regulators usually only give out a few authorizations because internet-based banking business models are not that mature and developed yet. However, in China, digital banks have grown to hold 5 percent of the unsecured consumer loan market share. This shows that following regulations well is vital for any bank that wants to keep its good name and stay competitive in the age where everything's going online.
4. Customization Options
Banks can use AI and big data to shape their services for the specific needs of each customer. This approach, called personalized banking, can significantly improve the experience customers have. It also attracts new clients.
Tabling an adaptable digital banking platform with high-level customization features makes this possible. These features allow banks the chance to adjust their service catalog easily, saving them from IT issues.
Research shows that 89% of people in the US are using mobile banking channels. Out of these, 70% say they mostly access their accounts through mobiles now. Adding personalization to these platforms improves engagement with users and satisfies them better. This cuts down on client dropout rates and reduces spending on getting new account holders. In summary, Customization Options make digital banking platforms more efficient and versatile.
5. Training and Support
Training and support help both workers and customers use the platform well. If workers have good training, they can use the features of the platform to do their jobs better and help customers as well. Strong support services can fix problems fast, which makes using the software less frustrating.
A lot of African banks agree with this idea. A survey found that 96% said changing to digital banking was critical for their bank's growth plan. For medium-sized banks, they could meet their digital goals by spending only 20-30% of what it usually costs for major core banking upgrades. So in short, when banks want to get all they can out of going digital - training and support matter a lot.
6. Total Cost of Ownership
Small and medium-sized banks need to think about the Total Cost of Ownership (TCO) when selecting a digital banking platform. These costs can come from many sources such as technology needs, software fees, storing data, online safety efforts and staff wages. For example, it could cost between USD 1 million to USD 10 million just for the technology infrastructure in digital banking platforms.
Digital banking can be very helpful for small businesses, too. About 20% of these businesses in Europe are struggling most with getting funded according to the European Central Bank. This problem may get an easier solution through streamlined services offered by digital banks.
However, deciding on which platform to use, banks must take into account both TCO and how much return they might get from their investment. So, understanding what makes up these total costs is important for banks before making a decision.
7. Technology Stack
Choosing the right tech tools matters a lot when selecting a digital platform. This set of software tools and technologies is called the Technology Stack. It helps run and build a digital banking platform.
A strong Technology Stack can improve how well the system works, its functions, and user friendliness. For example, today's banking tech stacks are built in parts. You can assemble these building blocks differently each time to create various functions.
This flexible setup lets banks add new features without messing with existing ones. According to a recent report on world retail banking, almost 66% of financial firms now use this type of base platform for better service quality.
So, understanding what makes up this 'tech stack' becomes very important for banks when they have to pick a suitable one that meets their unique needs and objectives.
8. User Experience
User Experience, or UX for short, is key to picking a digital banking platform if you're a small or mid-sized bank. It's all about the customer journey - how customers feel from their first visit to your website or app until they finish a transaction. Think of easy navigation and being user-friendly on mobile devices. There is also security and customer service that matter.
A good UX can help banks earn more money and lower costs in getting new customers as well as keeping existing ones. Take Starling, Monzo, and Tide for example – they are top performers when it comes to online and mobile banking services. Understanding UX helps these types of banks pick the right platform according to their unique needs.
To summarize, if smaller banks focus on giving great user experience through their digital systems like websites or wallet apps; they can make more loyal customers attract new ones, ultimately increasing profit.
9. Business Services
The term ‘Business Services’ is important when selecting a digital banking platform for small to mid-sized banks. It covers what the platform can do to aid the bank's activities. Choose platforms with strong banking features. These should help banks work effectively.
These might involve managing accounts, dealing with loans, processing payments and handling customers among others. Having many business services boosts how well a bank works and leaves a positive impact on customer service. A report on World Retail Banking highlights that about two-thirds of finance firms use this kind of platform to give better service. So, it is key for these banks to understand what these services are about, so they pick one that matches their needs and aims.
By focusing on business services, banks can make their day-to-day operations more efficient and improve how they interact with customers, which ultimately leads to an increase in profits.
10. Integration possibilities
Integration tools are important when choosing a digital banking platform for banks. These tools connect different systems together, which makes everything work smoothly. They also make it easier to incorporate additional third-party solutions.
With these solutions, you can also access data in a secure way through integration layers. These layers function independently from other changes in the system's structure to ensure speed and flexibility.
These tools ensure that all parts of the system speak the same data language - be it banking systems, customer relation tools, or any other tool used for analysis.
11. Continuous Updates
Updates matter a lot for banks when choosing a digital banking platform. Small and mid-sized banks need platforms that always get updates and improve without needing much work. This way, their digital services also stay fresh. Up-to-date platforms can match the latest advances in technology. Such platforms also have top developers and bring new products to market quickly based on what customers want.
A survey by McKinsey found in 2021 noted some key findings about customer expectations. About 71% of people want businesses to tailor their experience just for them. If they don't, around 76% become unhappy. Regular updates help deliver this level of personal service that many customers now expect.
12. Scalability
Choosing a digital bank for small and medium-sized banks means thinking about how it can help the bank to scale and handle the extra workload. The bank should pick platforms that are ready to grow with them. These platforms work best even when used heavily, making sure they use resources well during busy times.
Legacy banking systems often run into issues because their technology is outdated, which makes growth difficult. On the other hand, new digital banking platforms adapt easily and quickly, bringing in new technologies to keep up with market and customer trends.
These modern systems add new features quickly, ensuring they stay relevant and fulfill what account holders expect from them in the future. A large number of mobile users, almost 94%, use digital banking services each month. So having a growable platform helps banks keep customers around longer while also increasing efficiency and introducing more innovation.
Top 20 Core Banking Platforms for SMB
We are Velmie, a core banking platform provider offering a modular architecture and a robust API layer tailored for banks and Fintechs. Founded in 2011 by a team with over 15 years of Fintech experience and based in Vilnius, Lithuania, we provide a highly scalable, reliable, and secure solution alongside professional services to exceed customer expectations and secure a leading position in the ever-evolving world of fintech. With a proven track record of serving over 20 million active customers and boasting a 99.9% service availability, we have extensive experience in launching digital banks, mobile wallets, and payment solutions across Africa, Asia, and the MENA region.
Our platform offers key features that make it an ideal solution for mid-sized and small banks:
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API and integrations: Our strong API layer allows smooth integrations with a core banking system and other financial tools and services.
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User-friendly UI: Intuitive and straightforward interfaces ensure a smooth customer journey and engagement.
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Modularity: A microservices infrastructure makes our banking software platform modular and extremely flexible, allowing it to perform customizations, integrations, and extensions efficiently.
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Security and compliance: We prioritize robust security measures and stringent compliance protocols to ensure a safe and regulatory-compliant financial environment.
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Full tech support: Starting an agency banking journey can be complex, but we're here to help. We guide our customers through the process and provide comprehensive tech support every step of the way.
Temenos is an advanced banking platform leveraging cloud technology to support various banking activities, from retail to corporate and treasury services, enabling banks to offer tailored products while maintaining low costs. Its flexible model allows for faster and more cost-effective changes, shifting from upfront expenses (CapEx) to pay-as-you-go (OpEx), thus reducing the overall financial burden on banks. Temenos stands out for its commitment to innovation and compliance, boasting an open and adaptable platform designed to seamlessly integrate with cloud services, catering to businesses of all sizes. Trusted by over 1000 banks across 150 countries, Temenos has demonstrated its capability by supporting up to 150,000 transactions per second, facilitating the management of vast finance loans and retail accounts through the Temenos Banking Cloud.
Fiserv is a versatile core banking platform widely embraced by numerous financial institutions for its comprehensive coverage of tasks such as customer onboarding, transaction management, and data tracking. Banks favour Fiserv for its seamless integration with top-performing market products, cost-effectiveness, and rapid response capabilities. Its standout features include a commitment to innovation, ensuring future adaptability, and a focus on delivering consistent user experiences across all channels.
Notably, Fiserv's market dominance is evident, capturing a significant 40% share compared to leading core banking processors in the first quarter of 2022 alone
Oracle FLEXCUBE is a versatile platform primarily utilized by banks, enhancing operations across retail, corporate, Islamic, microfinance, and specialized finance sectors with machine-learning-driven insights, streamlining processes and reducing costs. It empowers banks to adapt to the evolving landscape of digital banking services, facilitating secure collaboration with service providers while retaining control over their operational environments.
Noteworthy for its ability to accelerate operations across diverse banking services and foster business growth, FLEXCUBE modernizes traditional systems with innovative solutions like cloud storage. As of 2023, over 970 companies have adopted Oracle FLEXCUBE, managing approximately 10,000 funds and supporting nearly 10 million accounts simultaneously in some instances.
Fidelity National Information Services (FIS) serves as a vital banking platform, seamlessly integrating with banks' core systems through its adaptable solutions, providing high-level banking services to enhance business operations. Banks utilize FIS to develop advanced banking platforms, enabling incremental updates to existing systems or the creation of new ones using cutting-edge online banking infrastructure. With FIS's robust digital tools, financial institutions can manage portfolios, introduce new products, and stay competitive in the rapidly evolving market landscape.
What sets FIS apart is its open and flexible structure, ideal for rapidly building modernized banks, coupled with comprehensive analytics and fully API-enabled functionalities. As of February 2024, FIS is projected to have a total value of $38.08 billion and a commercial value of $56.27 billion, employing over 55,000 professionals across more than 50 countries and offering over 450 solutions.
The Alkami platform enables banks and credit unions to deliver seamless, personalized, and secure digital banking experiences across various channels. Key features of the Alkami banking platform include digital account opening, card management, customer service tools, financial wellness solutions, money movement capabilities, extensibility for future enhancements, and robust security measures to protect user data.
The platform is designed to be highly customizable, allowing financial institutions to tailor the digital banking experience to their specific needs and preferences. It also provides efficient insights, future-proof solutions, and a flexible architecture to adapt to changing market demands, though it may have some drawbacks such as complicated admin settings and lead time for custom improvements.
Alkami's platform is cloud-based, offering maximum availability, resiliency, and industry-leading security to ensure a reliable and secure banking experience for users. It also supports seamless integrations with other banking solutions, enabling connections to a vast ecosystem of financial services and tools.
Avaloq’s core banking platform used by LGT, Deutsche Bank, and Barclays, among many others, offers optimized efficiency and future-proofed software. With more than 70 modules and digital solutions, the highly modular platform can be seamlessly integrated and scaled to best match the needs of a client.
Avaloq’s system delivers out-of-the-box efficiency with the flexibility to run ‘as is’. The company’s tried and tested process gets many banks and wealth managers up and running in just 90 days. The platform excels at reducing redundancies and streamlining back-office operations, so staff can focus on high-value tasks while clients receive superior digital service.
Built on Salesforce, nCino composes customer relationship management (CRM), customer onboarding, account opening, loan origination, workflow management, credit analysis, enterprise content management, and instant reporting functionalities into one cohesive platform.
nCino serves a wide range of clients in the banking and financial services industry, including retail banks, commercial banks, credit unions, and community banks. Judo Bank, Bendigo and Adelaide Bank, Summerland Bank, Peoples Bank, Wells Fargo, VeraBank are among its clients.
EBANQ offers user-friendly online banking software designed for both end-users and administrators. It automatically adjusts to various devices and browsers for seamless functionality. The platform supports multiple administrator accounts with configurable transaction fees and customer profiles, along with cross-currency transactions and cryptocurrency integration. Its modular architecture and extensive API allow for easy customization and third-party integrations.
Established in 2010, Ebanq has been serving financial institutions worldwide for over a decade. The platform caters to a diverse client base, including banks, credit unions, and financial service providers.
10x Banking is a fintech company established in 2016 and based in London, UK. 10x Banking's core offering is its cloud-native digital banking platform, which provides a comprehensive suite of features and capabilities including scalable architecture, modular design, open banking integration, personalization and analytics, security and compliance.
10x Banking serves a range of clients, including traditional banks, challenger banks, and financial institutions seeking to modernize their banking infrastructure and services. The company has formed strategic partnerships with leading technology providers, financial institutions, and industry stakeholders.
Finastra is a leading-edge core banking platform operating in the cloud and driven by APIs, offering tailored solutions for various types of banks, including retail, commercial, universal, community-based, and credit unions. Banks are drawn to Finastra for its agility in responding to market changes, cost-effectiveness, and seamless integration with top-tier products, facilitating connectivity between host and agent banks, corporate entities, and SME clients seeking streamlined access to payments, forex transactions, and liquidity management.
What sets Finastra apart is its open and flexible core, fostering long-term innovation while prioritizing user experience and empowering banks to develop unique products that meet consumer needs, ultimately benefiting businesses positively.
Mambu is a cloud-based platform specializing in banking and finance services, facilitating rapid deployment of lending and deposit solutions for banks and various institutions. Its modern, composable structure enables adaptability to change, empowering institutions to tailor technologies to their specific service infrastructure requirements.
Trusted by over 200 brands worldwide, including renowned institutions like ABN AMRO and Santander, Mambu serves over 45 million individuals globally each month, offering secure and cost-effective digital financial product creation.
Finacle, a banking software developed by Infosys, operates online and is dedicated to modernizing essential banking functions by offering a wide range of features such as flexible product platforms, robust product building, and extensive parameterization, all aimed at driving growth through innovation. Banks rely on Finacle to establish a solid digital foundation, facilitating seamless workflow management across various programs, resulting in significant savings in time, effort, and costs.
Setting itself apart from competitors, Finacle boasts exceptional design, a real-time processing engine, open APIs, and integrated customer insights, accelerating the creation of new products and the adoption of digital methods through its modular design. In 2023, Finacle was adopted by banks in approximately 100 countries, benefiting over 1 billion customers worldwide, with over 1300 clients trusting its ability to deliver faster, safer, and customized core banking services.
Backbase is an advanced software utilized by banks to streamline their services, enabling financial institutions to enhance customer interactions and modernize their operations. Backbase excels in its ability to dismantle outdated systems and construct customer-centric structures, allowing banks to improve customer experiences across various channels and break down silos between departments.
Backbase offers customizable features that empower banks to create unique client experiences, with pre-built software capable of meeting the majority of requirements for advanced mobile or web applications. Globally, Team Backbase comprises approximately 2000 individuals, with over 120 financial firms worldwide embracing it as an essential component of their operations.
Turnkey Lender is a comprehensive banking platform that specializes in providing end-to-end lending solutions for banks, credit unions, and other financial institutions. The platform offers a wide range of features and functionalities to streamline the lending process, including loan origination, underwriting, servicing, and collections.
Key features of the Turnkey Lender banking platform include automated decision-making capabilities, customizable loan products, risk assessment tools, borrower management, credit scoring, document management, and reporting and analytics functionalities. The platform is designed to improve operational efficiency, reduce risk, and enhance the overall borrower experience.
Turnkey Lender's platform is highly configurable, allowing financial institutions to tailor the lending process to their specific needs and requirements. It also offers seamless integration with existing banking systems and third-party applications, ensuring a smooth implementation process. Turnkey Lender serves more than 200 clients worldwide, empowering them to automate and streamline their lending operations.
Sopra's cloud-native banking platform, built on microservices and APIs, empowers financial institutions with a comprehensive set of features. Serving over 1,500 clients across 80 countries, Sopra facilitates digital transformation through its customizable or off-the-shelf solutions.
By automating back-office tasks and optimizing daily operations, Sopra ensures a lower total cost of ownership (TCO) for its clients. With robust security measures such as data protection, audit trails, API security, and fraud prevention, Sopra's core banking solution offers advanced protection against modern threats.
FintechOS’s platform offers a range of capabilities, including customer relationship management (CRM), account management, lending, payments, and analytics, all built on a modular and scalable architecture. With its low-code development approach and pre-built templates, financial institutions can quickly launch new products and services, improve operational efficiency, and enhance customer engagement.
With offices in London, New York, and Bucharest, FintechOS serves a diverse clientele, from industry leaders like Groupe Société Générale and Admiral Group to innovative companies like Oney and eMag. Collaborating with a range of partners, including consulting agencies and global firms like Deloitte, EY, and PWC, FintechOS delivers cutting-edge solutions to drive digital transformation in the financial sector.
Founded in 2004, Q2 has grown to become a prominent player in the fintech industry, serving over 1,000 banks and credit unions across the United States. The company's platform offers a comprehensive suite of digital banking services, including online and mobile banking, lending solutions, digital account opening, payments, and security features. With a focus on innovation and customer satisfaction, Q2 continues to drive the evolution of digital banking, helping financial institutions thrive in the digital age. The Q2 digital banking platform serves over 20 million end users.
With headquarters in Madrid, Spain, and offices in the United States, Argentina, and France, Capital Banking Solutions serves a diverse client base, such as universal banks, retail banks, corporate banks, private banks, Islamic banks, as well as microfinance, neo-banks, family offices and brokerage companies across the globe. Its platform offers a suite of modules covering core banking, lending, treasury management, risk management, compliance, and digital banking, providing financial institutions with a holistic solution to meet their diverse needs.
Capital Banking Solutions relies on a team of 300 experts spread across France, Monaco, Switzerland, the USA, Ivory Coast, the United Arab Emirates, Morocco, and Lebanon to offer seamless support and maintain close relationships with its clients.
Founded in 2004, and headquartered in Miami, Florida, NovoPayment has established a strong presence in Latin America, where it partners with banks and financial institutions to deliver digital banking and payment solutions tailored to the region's market dynamics and regulatory environment. Its digital banking platform provides a suite of features, including account management, payment processing, card issuing, compliance, and risk management. The Novopayment’s solutions facilitate quick and secure payments and transfers, allowing customers to send money domestically or internationally, pay bills, and set up recurring payments with ease and powers millions of transactions annually, facilitating seamless payments and banking services for individuals and businesses.
Conclusion
Digital banking can be both difficult and good for small and medium-sized banks. These banks have to deal with issues like finances, tough system setups, rivalry from fintech firms, compliance, and changing customer needs. The fact that they don't have enough to put into high tech systems poses a huge challenge. This often makes these banks fall behind in the digital landscape. Additionally, extra pressure comes from the fintech companies who are fast and creative. These forces cause these banks to speed up their shift to digital work.
However, despite the challenges small and middle-sized banks come with unique benefits. They already have customers and can conduct business because of regulatory permissions. Their small size makes them agile in adapting to digital banking. These banks have built strong customer relationships based on trust and personalized service hence creating a platform for their transformation into digital banking.
These smaller banks, including those community-based in the U.S., are key players in the fintech industry. Despite challenges they may face while transitioning to digital banking, these banks are well prepared because of their distinctive qualities. The shift towards digital transformation might be tough but it also opens doors for growth and innovation.