Banking is one of the industries that are significantly influenced by the 4.0 Revolution. Bank branches always demand high security and efficiency in their workflows to prevent even the smallest potential errors.
When implementing ERP software for banks, it is necessary to clearly define the requirements and features in order to choose the most suitable product.
Unique features of ERP software for banking
Simply put, the nature of ERP software is an information system designed to store and process large and critical data packages of a company. Therefore, ERP software for the banking industry focuses on addressing core processes such as financial transactions, protecting sensitive customer information, and connecting different departments.
It is important to note that an ERP solution cannot handle all business-related tasks, as this would lead to high costs and implementation difficulties. Therefore, you should only identify the most essential goals when building your ERP system. If you need assistance in this step, the consulting and support team at VNG Cloud is always ready to help you choose the most suitable solution.
ERP software for financial institutions and banks has been in use since the early 2000s. Nowadays, banks tends to use a system accompanied by customized modules, focusing on core business functions, addressing security needs, data processing, and cash flow management. Banking activities related to customers such as deposits/credits, cash transactions, and digital cash flow all require management software. And there is no room for errors, no matter how small!
What does ERP software for banks need?
When it comes to software for banks, two things need to be considered: features and modules.
Essential features
The essential features of ERP software for banks include:
Intergration: An unified database and workflow ecosystem that integrates all core business processes within it, regardless of the company's complexity. This enables large banks to collect valuable data, simplifying subsequent processing and analysis.
Consistency: Similarly, banking ERP software or web-based ERP should seamlessly work with different applications. Ideally, each bank branch should have quick access to the global ERP system, making it easier for national or regional managers to monitor work performance.
Real-time: The fast-paced nature of the financial industry demands quick and responsive actions from organizations and banks. During the 2008 financial crisis, banks that reacted swiftly were able to mitigate massive losses, while slower banks suffered severe consequences.
Furthermore, a conventional approach to ERP for the banking industry requires replicable solutions at any time. Providers prefer to create versatile systems suitable for the majority, accompanied by various customization and extension options. Therefore, having a replicable ERP software is convenient as it allows the integration of different solutions.
ERP modules
Regardless of the ERP software you chose (off-the-shelf or customized), you will receive a system consisting of several modules. Typically, ERP software for the banking industry also includes the following modules. Some of them are core and mandatory, while others can be independently enabled or disabled. Traditional ERP is divided as follows:
Core framework: This framework acts as a platform for extensions. It also includes APIs, code, and data processing methods.
Functional framework: Basic tools that are necessary for all companies. This section cannot be deactivated in the system, unlike more specialized modules.
On top of the platform are the modules. Previously, ERP for the banking industry had numerous tools including CRM, PPM, PLM, etc. Nowadays, they have become separately integrated solutions with their own costs. Therefore, modern ERP software consists of more internal processes and tasks than just interacting with partners. The modules are divided into the following sections:
Finance: Banks are concerned with ledgers, debit and credit accounts, tools to manage cash flow, liquidity, investments, and risks.
Human resources: This category is common for any company as it facilitates employee recruitment, training, evaluation, and rewards.
Operational management: This is the most valuable part as it is the foundation for the core services. Banks require appropriate business processes, planning, and distribution.
In addition to this categorization, ERP components can be used internally (designed for employees: accounting, manufacturing) or externally (designed for customers: CMS, personal profiles). Finally, there are connections and interactions between ERP systems and non-ERP systems used within the business.
The above diagram may appear complex, but remember that you can add and remove anything when implementing a on-prem or custom web-based ERP software for your bank. Even the basic functions can be easily modified to align with the bank's objectives and requirements.
Different banks may require different custom platforms to manage and protect sensitive data. Therefore, VNG Cloud always provides suitable solutions for various businesses, including financial institutions and banks. Based on solid analysis, we adopt a personalized approach to ensure quality and timeliness. In other words, you can consider VNG Cloud as a trusted partner for mutual technology development rather than just a simple service provider.