Exploring The Types Of Banking Software

Exploring The Types Of Banking Software

September 29, 2023 Off By Glespynorson

The demand for innovative banking software has never been higher. Nowadays, banks rely on advanced technology to manage client data and transactions, while customers expect to have a hassle-free experience and access to better services.

There are many factors to take into consideration when choosing the right banking software. Companies would have to make sure that the system that they’re choosing meets their needs and ensures that their customers are receiving the highest quality banking experience.

Let’s take a closer look at the most common types of banking software available so that you can make an informed decision about what option would be a better fit for your business.

Core Banking Systems

Digital banking core is a centralized system that allows business bodies or customers to carry out business operations (regardless of which of the bank’s branches they are located in).

A Core Banking Solution (CBS) is often referred to as the networking of the different branches which can be located all across the country or even the world.

Some of the main features of such systems include:

  • Transaction management
  • Customer onboarding
  • Management of customer relationship
  • Management of accounts and loans
  • Deposits and withdrawal management, etc.

Who Can Benefit from Core Banking Systems?

Financial institutions that have several branches spread throughout the country or different countries typically opt for a CBS. Such a system allows the banks to save plenty of resources that are used for repetitive business activities, while the customers would be able to enjoy the luxury of being able to carry out various transactions freely.

Such a banking system has led to the minimization of errors and operational costs.

Furthermore, CBSs facilitate transparency and standardization within the bank’s branches. As all the locations will be connected to one central server, any transaction can be viewed at any moment. This fact helps efficiently deal with inaccurate transactions and fraud.

Trends and Features of Core Banking Software

Mobile Banking Applications

The number of digital banking users in the United States is expected to reach around 217 million by 2025. This means that mobile banking is no longer viewed as an ‘add-on’. It has become a must-have feature for all banks and financial services providers.

Here are a few reasons why mobile banking has become so popular over the last few years:


The apps give customers an opportunity to access their account whenever they want without having to pay a visit to a physical bank. The clients can easily review their latest transactions, check account balance, transfer funds, and so on.


Mobile applications automate plenty of processes that would otherwise require plenty of labor hours. Moreover, apps reduce the need for paper statements and, in some cases, even the need to maintain physical bank branches.

Data Analytics

Banks and other financial organizations use the data from their mobile apps to better understand customer behavior. The information can, later on, be used to tailor the services offered to meet the specific needs of their clients.

Do bear in mind that you will achieve the benefits mentioned only if your mobile banking app uses advanced encryption and authentication methods.

Who Can Benefit from Mobile Banking Apps?

In the digital age, a mobile banking application has become a necessity, and any financial services provider who does not offer their clients such convenience will no longer remain competitive.

Loan Origination Systems

A loan origination system (LOS) is a software system that has been designed to do the following:

  • Loan origination and fulfillment processes management
  • Pricing and eligibility management
  • Data and document exchange with third-party systems

Who Can Benefit from Loan Origination Systems?

Financial services providers who offer loans can take their business to the next level by choosing such a software solution as LOS. The system automates and manages every step of the loan process which allows companies to focus on what matters the most – customer service.

Lenders who are already taking advantage of loan origination systems are able to handle more loans and reduce the costs associated with loan processing. The system also helps lenders make more accurate credit decisions.

Online Banking Platforms

Online banking platforms allow you to conduct financial transactions over the Internet from a PC or laptop.

Such platforms have a lot of similarities with mobile banking apps, but, at the moment, online banking offers a broader range of services than mobile banking. For example, some banks allow customers to transfer larger amounts through online banking platforms.

With that being said, every business gets to choose what services they want to offer through the website and the application. With the evolution of mobile apps, the chances are high that soon the functionality of both of these systems will be pretty much the same.

Who Can Benefit from Online Banking Platforms?

Online banking platforms can become a great banking software solution for companies that cannot justify spending part of their budget on the development of a mobile app (web development remains less expensive than mobile development, in the majority of cases).

You might also be able to benefit from an online banking platform if your customers prefer to access the various banking products from their computers. Not everyone has a smartphone, and those who do might not be willing to download a separate app.

Final Thoughts

Financial services providers that have managed to choose the right type of banking software (or a combination of a few) would be able to improve the efficiency of their business, reduce costs, and increase customer satisfaction rates.

As long as you manage to choose a secure system that meets your needs and allows for scalability, you will not regret the decision.