In December 2019, Deloitte forecasted that a US recession was entirely possible in 2020. The other G-7 countries were predicted to occur in a similar situation. The International Monetary Fund forecasted the slow growth of GDP in almost every region of the world. The COVID-19 disease has significantly contributed to the crisis. As of April 2020, 45 economists say that the United States has already faced the recession.
The challenges banks meet globally continue to grow. Among the major challenges named by Deloitte are the need to fortify the core and put a customer in the center. The challenges also include legacy software and data quality. Most banks start their digital transformation and invest in advanced technologies like Big Data, Artificial Intelligence, and Blockchain. However, many of them are still far away from their goals.
In this article, we would like to tell you about the universal core banking system, which is called FLEXCUBE. This system can help banks overcome the above challenges to comply with current regulations and improve most of their operations. You will also learn about our expertise in Oracle FLEXCUBE by examining the associated case.
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FLEXCUBE is an automated universal core banking software developed and introduced by Oracle Financial Services. This solution is designed for financial organizations and banks. It offers customer-centric core banking functionalities, and ensures a holistic view of all customers, enhanced communication between bank employees and consumers.
Due to FLEXCUBE’s opensource environment and multiple APIs management, its users can create their business logic, interfaces, and integrate the system with third-party applications. This international core banking system is compliant with various regulations and suitable for any bank in over 115 countries.
In a competitive environment, FLEXCUBE allows banks to benefit from the following:
FLEXCUBE can propel banks towards digital transformation and innovation. It offers embedded machine learning and artificial intelligence frameworks that allow banks to get valuable data about clients’ segmentation, attrition, and lifetime value.
By the way, the FLEXCUBE system supports several deployment environments in accordance with banks’ specific needs and offers excellent open banking capabilities.
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The major features of FLEXCUBE are as follows:
Today, any financial services business is searching for new ways to grow and prosper. Modern core systems meet this need and provide the following benefits:
Innovation. To retain customers and attract new prospects and leads, banks can use modern core banking software. By optimizing their capabilities to create customer-centric products and services, banks can significantly improve time-to-market and revenue. FLEXCUBE can be distinguished from similar products by its flexibility and multiple customization options.
Agility. Modular solutions allow banks to be more agile in the future. It means they will be able to implement various change requests faster or adapt to the emerging conditions. FLEXCUBE is a microservices-based platform – developers can work with a single functionality without a significant impact on other modules.
Integration. FLEXCUBE provides fast integration with third-party applications to meet the needs of large banking ecosystems. It has all the needed APIs and libraries to be smoothly integrated.
Cost-effectiveness. FLEXCUBE is an excellent way to migrate from legacy systems. It is fully compliant with current regulatory requirements, customer needs, and expectations. The system supports various deployment environments and reduces costs for innovation.
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DICEUS’s Account Director Vladimir Korotich has kindly shared his knowledge about DICEUS expertise in FLEXCUBE. Below he tells about one of the recent business challenges our customer met during the coronavirus outbreak.
“As for today, we continue working on the development and maintenance of a database warehouse needed to support decision-making processes within the bank. There are particular data about sales, customers, financial balances generated by DWH from multiple systems. Bank management, risk management department, sales department, general office make decisions, i.e., some changes are made in product categories, deposit, and credit rates are being increased or decreased. Management is done via monitoring the indicators in the warehouse. The source of this knowledge is a specific range of systems, one of which is the core banking system.
In general, there are over 100 core banking systems in the world. FLEXCUBE is just one of those. Previously, it was called iFlex until 2005 when it was acquired by Oracle for $900 mln from the Indian software provider. FLEXCUBE core banking consists of multiple modules; it continually evolves with the market and regulatory demands that are met and implemented by local system integrators. Central banks inside each country regulate the financial policy. Thus, banks should comply with these policies on different levels, including liquidity.
Core banking is the fundamental general ledger that allows banks to manage their core operations. It serves for opening accounts, payment of credit and deposit interests. It is also the primary source of information about customers, and the most important bank information, consequently.
Our team was involved in an urgent change request associated with the FLEXCUBE’s credit module. Due to the coronavirus outbreak, many world’s central banks issued directives in terms of which commercial banks had to restructure credits and payment schedules. That’s because many people lost their jobs and couldn’t pay interest on mortgage loans.
However, the core banking system is not intended for these functions, as any product changes can be considered fraud. Our client was able to solve this issue with data deviation between analytics and reporting caused by the changes made in the system.
The change request from the client’s side was transferred to our team for analysis. Together with Oracle engineer and FLEXCUBE database consultant, our developers managed to implement the change within a few weeks. A series of tests were performed: smoke testing, regression testing, and integration testing.
Due to the coronavirus pandemic, central banks have obliged banks to restructure loans. That decision has affected most banks’ operations and changed significantly their plans for 2020. To implement this request, calculate a new model and connect it with future payments, and find the gap, every bank had to perform substantial analytical work. All this should be confirmed with corresponding legal documentation and be technically implemented. Our team has managed to deliver the change under a tight schedule successfully.”
DICEUS develops cloud-based solutions, custom software, web, and mobile applications for a wide range of industries, including banking and financial services. We have extensive experience in Oracle FLEXCUBE, Oracle Java, Oracle Siebel CRM, and other Oracle solutions. Our teams can handle any change requests for various core banking modules. Feel free to get professional IT consulting, business analysis, software development, and testing services.
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