The Next Era of Banking: Core Banking Dynamics in 2024 - Internet Soft

The Next Era of Banking: Core Banking Dynamics in 2024

Introduction

We must say that banks and the way of doing banking have changed substantially over two decades and more. Multiple branches in a banking network handle a bunch of operations as well as many individuals. Nowadays, cash transactions have declined drastically, due to a remarkable rise in the number of digital banking transactions by all sizes of businesses and individuals, as well. In the segment of digital core banking, the competition is ever-rising. Many agile startups, big financial institutions, and fintech companies with big Digital pockets are ready to provide their best services in the segment of core banking solutions and also digital banking and payments systems.  

Today the technology trend of AI and Cloud computing with data in big sizes processing and data analytics etc. The technology in the financial domain especially in the core banking operations has changed the game with the unmatched qualities or features of AI and Cloud computing. 

Internet Soft, an established software development company in California, exclusively offers contemporary solutions for digital banking and payments. We have a team of dedicated domain experts in the core field of finance and banking industry. We have strong know-how of core banking solutions to deliver our customers the best in today’s 

Market demands. To know more about our digital banking and payments services and solutions, contact us now.

Use core banking market growth Statistics data

The core banking market growth Statistics data has shown a very prospective figure in this segment. The global market size for core banking software was at $12.51 billion in 2022 & is expected to rise from $14.54 billion in 2023 to $47.37 billion by 2030.

Surely, the next era of banking will be full of leveraging technologies like AI, Cloud Computing, and Data Analytics. The entire way of core banking will be transformed for every individual and every business within the next ten years on a global level.

In this blog article, we will be discussing the Core Banking Dynamics for 2024 in detail. The banking industry will be the most beneficiary industry with a productivity enhancement of almost 22 to 30% upon implementation of AI.

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1. High growth in Gen AI

Generative AI delivered fabulous results upon implementation by many leading banks last year. This year, It will start giving results in other departments of the industry with promising performance. Some banks have high plans, making AI their basis for operations. This will regenerate their organizational work functioning. 

AI will give a direct revenue hike by approximately 6% in areas like Sales & Marketing, customer care & support, etc. in 2 or 3 years. The Artificial Intelligence (AI) implementation will of course attract more skill enhancement or new trained staff may be required to achieve the business goals as per the plan.

 2. Capturing the digital dividend

Now after a journey of almost 25 years, many banks are perfectly functioning to deliver the best digitized experience to their customers. Almost 99% of Banks have remote touchpoints. Customers can feel the individual experience of their digitized banking experience at present. Also to develop sales and marketing leads through remote conversations, the digital banking system must be handy enough.

AI’s role will be a crucial one in this. AI will be a tool to give the best individual experience across their demographic locations and irrespective of their branch network. The remote banking experience is going to be the same with the right use of AI, whatever a customer gets in the branch. 

 3. Risk factor

No bank with all modern technologies and the latest tools has an idea of any greater risk of bank failure at what time. So, risk management is purely a real-time happening event. That may cause a very big and drastic change in the functioning or working of banks and their strong branch networks across multiple demographic locations. 

As AI nowadays has more emphasis on Cybersecurity, it has to be on multiple other relative factors like Risk Management, etc., especially after the pandemic.

Risks like resilience, and zero rate market rise causing higher housing rates, major market share of non-financial enterprises giving various loans are there. They need to address the combination of AI and humans.

Core Banking Dynamics in 2024 - Internet Soft

 4. Working the AI way

Artificial Intelligence has reformed the work style of banking. AI demands a skill development or smart new workforce, used to AI-based work models, will lead the show. Every bank at every phase of their working model will need humans with AI knowledge skills and its optimum use to do the banking work seamlessly. At the same time, every bank needs to figure out its human touch for its target market and customers to build up long-term relations, customer service, support, etc. to exist or be available in the market as a brand.

 5. Pricing strategy

Every bank is cautious about the slight change in pricing for products, services, and channels for the customer. Gen AI will search and give the perfect target pricing for the bank. It will consider thousands of parameters to accomplish this task. The perfect pricing keeps every bank in the race.

 6. Cloud Approach

At this moment, every bank wants their application on the cloud to be in the stiff competition of fintech and core banking market. Cloud is becoming the success key when it comes to fast and efficient working results, On-premises and cloud combination models with their best-optimized versions are the need of the hour.

 7. Regulations on Banks

In the AI age, it is becoming a crucial factor between the regulation body and the bank over expenses and legal sides to compete for the bank. It has to be fast and worry-free for every bank.

 8. Technical Approach of the Bank

From AI to the engineering mindset- the banks must transform with time and market dynamics at a rapid rate to deliver the same customer experience with variable features, expanding them rigorously. The bank approach has to be apart from maintenance and operations to design, and architecture of their best solutions for the customers in the long run. Apart from leveraging AI and cloud technologies, their system design and model must be customer and market-needs-specific.

 9. Modernization rate

The rate of modernization by the use of Artificial Intelligence is growing more and more today. The majority of banking executives believe that their enterprise will become more efficient and modern after the successful adoption of AI implementation projects. The customer experience will enhance considerably within a short time, and the profitability of the bank will be experienced by the smart use of AI in their daily work.

 10. Power of AI

Due to AI, The qualitative problems arising in the banks will be resolved easily over other conventional tools like Six Sigma, etc. The time savings to handle a quality problem and quality outcome with AI are the game-changing parameters in today’s core banking. Now a large scale of executives believe that AI usage will transform the way they work. Others are yet not up to the mark to catch the skill and be future-ready with more outcomes today. 

Internet Soft, a leading core banking solution provider company in California has a range of Financial solutions i.e. core banking and Neo banking solutions with them. Being a software development company in California, we are a ready resource for the banking and financial industry. We have trained experts to deliver the best quality digital banking and payment systems to our customers. To hire our AI development team, contact us today.

End Summary 

We have discussed the ultimate ten core banking dynamics of 2024 in this blog. Artificial Intelligence is a trendsetting technology that is a real development beneficiary for the core banking industry. It is available with many crucial features with high outcomes. It requires equally talented and smart manpower in the banking sector to use it effectively in the banking industry to reap the ultimate benefits.

Visit Internet Soft for the latest tech trends and insights around AI, ML, Blockchain, along with NeoBanking and timely updates from industry professionals!

Need assistance or have questions? Reach out us at [email protected].

ABOUT THE AUTHOR

Abhishek Bhosale

COO, Internet Soft

Abhishek is a dynamic Chief Operations Officer with a proven track record of optimizing business processes and driving operational excellence. With a passion for strategic planning and a keen eye for efficiency, Abhishek has successfully led teams to deliver exceptional results in AI, ML, core Banking and Blockchain projects. His expertise lies in streamlining operations and fostering innovation for sustainable growth

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