Banks need to modernize their core banking system – Opinion

Pakistan’s banking sector has flourished tremendously over the past few years, with steady growth in operations, customer penetration and profitability.

New leagues of branchless banking operators, electronic money institutions (EMIs), POS/PSP operators, etc. emerging in the sector, bringing innovations in banking services and modes of operation, as customers move away from the physical model. Major commercial banks are also focusing on innovation to offer new and improved digital banking services in Pakistan.

Pakistan’s banking infrastructure consists of 44 commercial and microfinance banks with over 16,500 branches. According to the State Bank of Pakistan (SBP) Payments System Review, the number of bank accounts in Pakistan operated by commercial banks jumped to over 62 million in December 2021, while the number of registered accounts by branchless banking operators soared to more than 78 million. .

As the Pakistani banking industry is witnessing large-scale changes and a shift in the way customers do their banking, transforming a bank is now more essential than before.

Modernizing basic banking services is crucial for today’s banks, as an up-to-date back-end system is needed to process day-to-day banking transactions and update accounts and financial records, including deposits, loans and credit processing. It is therefore safe to say that a central banking system serves as the backbone of any financial institution.

In Pakistan and globally, major banks rely on modernizing their core by implementing state-of-the-art banking software and an implementation partner with the right expertise who can understand the needs of the bank .

NdcTech, a leading IT company and award-winning Temenos partner, is focused on transforming big banks across the globe.

NdcTech maintains a global footprint, with offices in Pakistan, Singapore, United Arab Emirates and a wealth of expertise serving over 100 banks in 29 countries around the world. NdcTech also provides other services to build the banks of the future, such as digital banking, managed services, consulting and cloud banking.

The company has not only modernized the core banking system for major banks in Pakistan such as State Bank of Pakistan, Meezan Bank, Telenor Microfinance Bank, Bank of Khyber and Samba Bank, but also transformed the core banking platform for various international banks such as Capital Bank of Jordan, National Bank of Kuwait, Tourism Development Fund KSA, Ziraat Bankasi KSA, Amlak International and Export Development Bank Sudan.

The backbone of a bank’s infrastructure is a robust core banking system that enhances banks’ ability to facilitate their customers with more innovative services. It minimizes human intervention thus limiting errors; helps prevent fraud and theft with real-time banking; reduces operating costs and facilitates the study of changing customer demands. To transform the landscape of the Pakistani banking system from the traditional brick-and-mortar model, modernization of the core banking system is essential for banks to remain relevant and sustainable.

Copyright Business Recorder, 2022

About Ruben V. Albin

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