Consumers’ expectations of digital services and platforms are changing rapidly. Currently, all age groups of consumers are increasingly striving for a multi-channel experience and personalization. They expect to access their account information anywhere, anytime and on any device. To keep up with these requirements, many banks should have a strong digital presence. Moreover, they need to deliver a multi-channel banking experience that is relationship-focused, interactive and personal. According to a recent report, the global online banking market size will have reached 20.5 billion U.S. dollars by 2026. This means that the fastest way for financial organizations to reach modern customers is by going online. With that in mind, we decided to create an online banking software that will help them improve management, cut down on paperwork and boost productivity. Let’s delve into the details below!
What’s exactly online banking software?
Generally, online banking software is used to provide users with access to their accounts online. Not only can they transfer money with a few clicks of their cursor, but they can also perform other operations such as applying for a loan or depositing checks by simply tapping on their tablet or mobile device. Moreover, bank customers don’t have to visit a local bank branch. Almost all of the banking tasks can be done when it’s most convenient.
What are the types of banking software?
Highlighted below are the most common types of banking software:
- Internet banking system: allows bank customers and financial organizations to make financial or non-financial transactions online via the Internet.
- ATM banking (Automated Teller Machine): this type of banking software allows bank customers to complete the basic transaction.
- Core banking system: allows bank customers to perform various banking operations from anywhere in the world.
- Loan management system: used to provide customers with a range of processes related to loans and lending.
- Credit management system: used to record and track payment arrangements, handle credit accounts, assess risks and check the creditworthiness of the clients.
- Investment management system: used to manage the investment process from submitting and viewing the progress of the bids for funding.
- Financial management system: used to automate and streamline the financial processes and create value through timely financial monitoring, accounting, etc.
Also, you can read about: How to create CRM for the banking sector
What are the essential requirements for the banking software?
Let’s discuss the essential requirements for the online banking software you need to keep in mind:
- Security: the banking software should provide a secure network. This means it needs to be resistant to hacking, system failures and errors. Moreover, it needs to keep personal and transaction data safe and protected to prevent any activities of compromise.
- Speed: the online banking system should work quickly and without any delays to process all the banking operations fast.
- Usability: means that the banking software has a reliable and intuitive user interface and enables bank customers to accomplish their goals with ease.
- Profitability: means that the online banking system provides paperless offices and delivers high-quality services saving up to 85% reduction in operating costs.
- Scalability: means that you need to make sure that the system can handle increased bank customer traffic and more complex financial and accounting workflows in case of business growth.
Why do you need online banking software?
Going online is essential for any financial organization. According to the latest report on banking behavior, more than 60% of bank customers do at least some of their banking operations online. This is one of the most essential reasons to develop and implement online banking software. Below we outlined some other reasons you should turn your attention to:
- The need to improve their virtual presence and services.
- The need to deliver a multi-channel experience and increase customer base.
- The need to eliminate pen-and-paper operations.
- The need to minimize risks by taking advantage of automated tools.
- The need to improve in-house security by customizing employee access to business accounts.
What’s the idea of online banking software?
To keep up with consumers’ demands, more financial organizations release new features to attract new customers and retain their existing ones. Only by opting for online banking can they provide users with the ability to complete all the banking activities without visiting their bank branch. Moreover, they can access and check their account with fully secured channels, transfer funds and talk to chatbot if there are some questions. We, at DDI Development, have first-hand experience in fintech and implement a plethora of financial solutions. With that in mind, we created an online banking software that automates some financial operations and helps minimize risks.
The development process of the banking software
Provided below is the process of the online banking platform development. Let’s dive into the details below!
To create the online banking platform, we had to involve the following specialists:
- 1 Business analyst (BA)
- 1 Project manager (PM)
- 2 UI/UX designers
- 9 Front-end engineers
- 3 Quality assurance engineers (QA)
- 9 Backend engineers
- 3 Android engineers
- 3 iOS engineers
With Agile-driven software methodology, the team worked on the project. We listed several factors related to our choice:
- The client’s needs always took priority over the requirements in the development plans.
- We adapted the potential software solution to any changes in the requirements of the client.
- Results were more important than established processes.
The team reached established goals and completed the online banking platform in 24 sprints.
At the very start, a Business Analyst interviewed a client to understand what problem was going to be solved with the online banking solution. Gathering all the essential information about the business processes, potential users, their actions, the team, the Business Analyst could identify key roles and features for the potential solution. The potential solution would include the following features:
- Customer self-service portal and management
- Online payment processing and bill pay
- Remote deposits
- Customer interaction (e.g. live chat)
- Transaction history tracking
- Data and document store
- Financial and accounting workflow
Once the Business Analyst collected all the information related to the potential solution, there was a time to create a project specification document that would outline the overall look of the desired online banking solution and functional specification that would specify how the client saw the appearance and capabilities of the upcoming system.
Based on this information, a Project Manager provided a preliminary estimate to the client and suggested the roadmap for the development process. After it was confirmed, the planned scope of work (so-called Backlog) was divided into 2-week sprints and made up 24 sprints in total. The team developed the online banking system during 12 months. Before each sprint, the whole team of designers, front-end and back-end engineers, QA specialists reviewed which feature from the backlog they would work on and commit to some result by the end of each sprint. Also, the team presented the results to the client during demo sessions. When the online banking system was ready and free of bugs, we launched it and collected real-world feedback from the users to make improvements and upgrades.
Below you can find what technologies have been used to create online banking. They are presented schematically.
Here we elaborate on user roles within the online banking platform and discuss each role.
- Bank Officer: a person who is responsible for keeping an eye on all the transactions, checking all the documents, taking reports, etc.
- Loan Officer: a person who tracks and maintains credit and loan information, evaluates the creditworthiness, completes loan contracts, maintains account records, etc.
- Bank Customer: a person who can manage money using an application.
- Administrator: a person who is responsible for making global changes in the system configuration.
Bank Officer Dashboard
As a Bank Officer, you need to log in to land on the Dashboard page. It is a home page in the online banking system. On the left, you can find the following options: Requests, Accounts, Transfers, Messages, Reports and Account Settings.
With the Requests feature, you are in the know about the transaction requests within the online banking system. Not only does it help you track the status of the transaction requests, but you can also be in the know about registration requests. On this page, you will see two tabs - Transfer Requests and Accounts Requests. All the information is presented in a well-structured table.
Thanks to the Account feature, you can keep bank customers’ accounts on track. Not only does it help you monitor and analyze how customers use their accounts, but you can also forecast and track key account metrics. This allows you to keep current clients satisfied and deliver exceptional banking services on a daily basis.
With the Transfers feature, you can see all the available transaction options of the bank customers such as incoming wire transfers, outgoing wire transfers, transfers between accounts, transfers to other users, fx transfers, card funding, etc. All the information you will find in the table that includes the following columns: Transfers ID, Type, From, To, Created Date, Delivery Date, Amount, Currency (USD, Euro) and Status (Delivered/Processing/Declined).
With the Messages feature, you can easily send messages within the online banking system and share any information including text, audio, images, video, and files. Moreover, you can edit or delete the content of a message that you have already sent. This will definitely speed up collaboration and communication among colleagues and simplify the process of solving any problems that may arise.
With the Reports feature, you can rely on a single reporting framework that gives you full or summarised information about all of your transactions, accounts, etc. Not only does it help you reduce redundancies and overlaps, but it also allows you to minimize the reporting burden and enhance financial data quality.
Loan Officer Dashboard
Logging in as a Loan Officer allows you to reach the Dashboard page. Here you will see the following options: Loans, Deposits, Documents, Messages, Reports, Account Settings. Let’s take a closer look at them below!
With the Loans feature, you can see all the essential information about the loans within the online banking system. On this page, you can find a table where you can find the following information:
- Loan #
- Loan Name
- Loan Type
- Bank Officer
- Original Loan Amount
- Origination Date
- Maturity Date
- Book Balance
- Interest Rate
With the Deposits feature, you can track and monitor all the information about the deposits within the online banking system. On this page, you can see two tabs - Summary and Deposits. The Summary offers more information including insight into the deposits portfolios that allows you to make more data-driven decisions.
With the Documents feature, you can be abreast of the document workflow within the banking system. Not only can you avoid unnecessary paper-based processes, but you can easily access any document with a simple click. You make sure that financial statements, deposit reports and loan agreements are compliant with the current laws and regulations.
As an Administrator, you will be redirected to the Dashboard page after logging in to the online banking system. On the Dashboard page, you will see the Accounts, Profiles, Transfers, Loans, Deposits, Documents, Messages, Reports, System Settings. Below we are going to discuss the ones that are different and not presented in the other accounts.
With the Accounts feature, you can easily manage all the accounts within the banking system. Not only can you set a different number to an account, but you can also change the account type and specify a maturity date for a term deposit account. In addition to that, you can assign the interest payment.
The Profiles feature allows you to create user profiles using CSV files, view and regularly update them. In addition to that, you can manage profiles and change their statuses to frozen, inactive, active and term. On this page, you can see three tabs - Transfer Requests, Registration Requests and Profile Documents.
This particular feature is used to make all the essential changes within the online banking system. Not only can you update information about accounts and profiles, but you are also responsible for modifying the transfer fees and transfer instructions.
Also, you can read about: How we built a Mobile Banking App
Key features of the banking software
Provided below are key features presented in the online banking system. Let’s take a closer look at them.
- Customer self-service portal and management: this feature allows you to identify, segment, communicate and build long-term relationships with your bank customers.
- Online payment processing and bill pay: thanks to this feature, you can manage the transaction process with ease.
- Remote deposits: this feature allows you to submit and accept deposits on a remote basis.
- Customer interaction: with this feature, you can deliver a support experience to your bank customers and help them with common issues, FAQs, etc.
- Transaction history tracking: this feature allows you to manage activity details and keep track of transactions within the banking system
- Data and document store: thanks to this feature, you can store, manage and retrieve documents you need.
- Financial and accounting workflow: thanks to this feature, all the financial and accounting workflow is automated that reduces the likelihood of issues that may cause significant problems.
Benefits of the online banking software
Online banking software opens up ample opportunities to use banking services over the Internet. Let’s reveal what benefits you can derive from incorporating this type of software.
- You can better serve bank customers and improve the efficiency of bank services.
- You can have immediate access to reporting options to gain in-depth insight into the effectiveness of the financial management and keep control of risks.
- You can automate the implementation of operations and complex banking transactions.
- You can speed up and simplify the process of communication with your customers.
- You can make the process of the assessment of the customers’ creditworthiness more accurate.
- You can integrate this software with other ones with a simple click.
- You can configure the standard parameters required for the implementation of all banking transactions.
Bottom line: Want to reap the benefits of online banking software?
Nowadays you can access nearly all banking services easily and conveniently. This means that many business processes in the banking industry are automated and simplified which makes banks smarter for customers globally. Moreover, it provides a competitive advantage for the banking industry – all the banks can deliver more sophisticated online experiences to their customers. Not only does it help them automate several manual banking processes to reduce the labor cost, but they can also minimize the infrastructural, operational and support expenses by offering all the necessary banking services online. With that in mind, you should opt for online banking software to expand the bank customer base, improve employee output and efficiency and boost revenue. Let us know if you want to transform any idea into a real banking solution and improve competitiveness.