With constant modernization and digitization, present-day businesses realize the importance of proper managerial solutions for internal use. Even medium and small companies implement such products, not to mention large corporations. Currently, ERP (Enterprise Resource Planning) systems represent the most popular approach to maintain in-house business processes and to gather, store, and interpret data. Emerged as manufacturing software, the mentioned applications are widely used in every modern industry now. Particularly, entrepreneurs appreciate ERP for banking industry.
Financial facilities require a high level of security and streamlined reliable workflows which prevent even the smallest potential errors. If you consider the possibility of deploying ERP for your company, it’s better to clarify definitions and features, so you will be able to choose the best product. We will begin with some general data and then move to unique stuff related to banks.
It’s not an easy task to define what ERP is exactly because this marketing term consists of two parts:
Simply put, the current conception of ERP recognizes it as an information system to store and process large packages of crucial company’s data. Hence, ERP software for banking industry focus on key processes such as financial transactions, protecting clients’ sensitive info, connecting multiple departments etc. It’s important to note that such solutions barely can handle literally all business tasks because this leads to great implementation costs and difficulty. Thus, you should define the essential things to gather them into a single solution. Our company can help with this stage by providing comprehensive business analysis.
The basic idea behind ERP was introduced by the Gartner Group in 1990. First solutions were designed to manage manufacturing processes using actual software. Due to the Y2K problem, many companies decided to replace their outdated platforms with ERP in the late 1990s. While traditional products were focused on back-office tasks, further development introduced front-office features of ERP: e-commerce practices, communication with clients, CRM apps. In the XXI century, web ERP for banking industry and other sectors appeared to facilitate the collaboration of different enterprises via the Internet.
Need more info on interaction between ERP and CRM? Find out how we combine these applications with each other!
Similarly to other companies, financial corporations began implementing ERP apps in the early 2000s. Now, some banks use basic systems with slightly modified modules but more businesses migrate to customizable products which suit current demands for security, data processing, and money control. Banking consists of exclusive customer-related activities such as deposits/credits, cash transactions, and digital money flow, so facilities have to build their reputation to attract and retain clients. Faults are simply unacceptable.
Further, we want to cover the major features of ERP software for banking industry: characteristics and modules.
To start with, let’s look at key operational principles of decent apps. They must be:
Additionally, the most traditional approach to ERP for banking industry provides for ready-made replicable solutions. In other words, developers prefer to create universal systems which suit miscellaneous organizations with different preferences and extensions. Replicable ERP software is convenient because it allows integrating best practices.
However, banks may require unique custom platforms for managing and protecting sensitive data. Our team deploys tailored solutions for different enterprises including financial ones because we prefer a personalized approach with solid analysis. We are more technology partners rather than freelance developers, so we guarantee quality and timeliness.
Regardless of the chosen product type (premade or custom), you will get a system which consists of several modules. Usually, ERP software for banking industry also features these parts. Some of them are core and obligatorily while others come like switchable elements which you can enable or disable independently. Traditional ERP is based on its platform divided into:
Over the platform, there are modules. Earlier, ERP for banking industry featured a lot of tools including CRM, PPM, PLM, and so on. Nowadays, they come as separate solutions integrated for an extra price. Hence, modern ERP covers more internal processes and tasks rather than communications with clients. Modules divide into the next parts:
Apart from this classification, general ERP elements may be for inner use (designed for employees: accounting, manufacturing) and for external use (designed for clients: CMS, personal profiles). Finally, there are connectors which care about the interaction between ERP and non-ERP systems used in the enterprise.
The overall scheme may look a bit complicated but remember that you can add and remove everything when you order a customized local or web ERP for banking industry. Even the basic functionality can be easily modified according to the bank’s goals and needs.
First and foremost, ERP is the way to combine all essential business processes in a single powerful system. There are tons of advantages, so check the most valuable ones which are perfect for banks:
On a par with strengths, there are always some weaknesses. They are strongly linked with advantages and, thus, are inevitable:
To start with, there are numerous developers of ERP applications. In 2017, the top 10 of them covered around 31.7% of the global ERP market. Furthermore, the industry was worth $82.6 billion and it was predicted that it will be $85.9 billion in 2022. The majority of leading companies focuses on ready-made solutions which feature best practices suitable for any industry. If you are ready to work with a predefined set of tools and modules, pay attention to teams like SAP, Oracle or Microsoft.
Some notable banking corporations rely on the described preprogrammed solutions. Just take a look:
The problem of the aforementioned examples is hidden in the generalization. Ready solutions are poorly customizable because each unusual module imposes additional costs. It means that tailor-made products are more efficient because they feature only the necessary functions and are developed for your company exclusively.
Before ordering a custom ERP solution, be sure to consider necessary points:
After you are done with the previous stuff, proceed to the final stage and choose a team which will develop and integrate the product. Be sure to find developers which will be able to launch the most suitable ERP for your business. For this, we recommend asking yourself a few questions which should facilitate the selection process:
Our company has rich experience in creating ERP systems for various teams including banks. We have some use cases with leading national and global companies for which we have designed and launched:
Are you ready to purchase an ERP system? Here’s the info on ERP implementation by our devs.
If you consider the option of implementing ERP for your bank, feel free to contact our team to get first consultation. Just contact us and we will provide all the detailed info about our versions of ERP software for banking industry, the whole development process, and important things for your business exclusively.
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