How do banks optimize their back office business processes?

How do banks optimize their back office business processes?

Convenience, the quality of financial products and customer support, and the resulting user satisfaction with a bank’s services directly depends on how well the bank’s internal business processes are organized.

WHO DOES WHAT?

Modern banks are striving to dynamically optimize their activities and find ways to increase the efficiency of liaison between all structural units – the back, middle and front offices.

The front office performs activities requiring direct contact with customers, both in person and online. The middle office is the link between the front and back offices, not directly in contact with customers, but responsible for such operations as credit score checks, risk and limit control, and inputting data received from the front office.

The back office carries out the implementation of workflow regulations, collects and analyzes information about business processes, is responsible for fees, accounting, regulatory and management reporting, and performs mutual settlements with counterparts.

Effective liaison and clearly defined boundaries between the back, front and middle offices enable the structuring of business processes and cost reduction. The distribution of functions is specific for every bank and depends on several factors – the size of the banking network, product line, provision of customer service and others.

HUMAN FACTOR

The back office plays one of the key roles in the bank’s workflow organization process. Any failure in the functioning of systems threatens the security, service quality and reputation of the bank.

RELIABLE BANKING SOFTWARE WITH BACKUP RESOURCES FOR FAULT TOLERANCE, LOAD BALANCING AND INTELLECTUAL FRAUD PROTECTION IS A NECESSITY WHEN BUILDING A MODERN BACK-OFFICE SYSTEM

Reconciliations between systems is important for the proper functioning of the back office, but doing it manually, especially when working with big data, is time-consuming. Strategic decisions that minimize the impact of the human factor and increase automation will improve quality, efficiency, work speed and reduce costs.

Various tasks in the front, middle and back offices are performed at different speeds, and so with automation it is important to pay attention to cross-cutting key business processes, as the transition between departments often leads to context loss or creates a bottleneck.

FLEXIBLE CLOUD SOLUTIONS

With the constant technological progress that characterizes the payment industry and tough competition there is a need to introduce flexible banking IT infrastructure with a low level of operational risk.

THE ARCHITECTURE OF SOLAR RETAIL BANKING AND SOLAR ACQUIRING SOLUTIONS ALLOWS SEAMLESS INTEGRATION INTO THE EXISTING LANDSCAPE AND EASILY ADAPTS TO THE CLIENT’S NEEDS, THANKS TO HORIZONTAL SCALABILITY SYSTEMS CAN BE LAUNCHED ON THE PLATFORM WITH THE MOST BASIC CONFIGURATION

Cloud technologies are quickly developing which offer banks exceptional opportunities to transform their back offices, gain a competitive advantages and reduce costs by transferring to the cloud part of the bank’s processes. The use of a hybrid cloud platform enables the dynamic growth of resources as the system load changes, ensuring economic efficiency.

All Solanteq solutions support cloud infrastructure. The containerization of SOLAR components enables their native integration into the cloud environment and the use of application deployment management tools built-in by various service providers. The SOLAR platform is driving the enhancement of banking services, upgrading security, accelerating the time taken to launch products on the market and reducing the associated costs.