Modern businesses constantly seek the best solutions for optimized process and reporting management. The banking industry is no exception. Like many other industries, it is implementing ERP (Enterprise Resource Planning) systems to achieve higher efficiency and reduce costs.
What the advantages of the approach are, what modules should be included, and how to create functional and multitasking ERP software, you will learn below.
Definition and Main Advantages of ERP Framework for Banks
Enterprise Resource Planning is a complex system designed to combine all functions of a financial institution into a single software. Banks implement it to organize the collection, storage, and interpretation of data and support internal business processes. It helps to manage accounts, make regular payments, and assist in risk management.
It is a valuable software that facilitates the exchange of information and contributes to easier and better business organization. You can deploy ERP locally or in the cloud. However, you should have a clear plan of action and sufficient experience in the area. If you don’t have it, but are looking for an effective implementation of the structure, QArea may be the solution.
Here are the main benefits of the approach to keep in mind:
- High process efficiency. You can quickly view compliance with KPIs, get automated reports, or monitor information for the bank and all its offices.
- Fast and coordinated collaboration. With ERP, collaboration between partners and working groups becomes more seamless, requires minimal time, and helps to better share data.
- Improved safety performance. Information is stored in a centralized repository and has limited access. Together with numerous firewalls, it reduces the risk of unauthorized actions and data leakage.
- Significant cost-effectiveness. You can anticipate failures and resolve them without delay, thus saving on operational costs.
- Compliance with regulatory requirements. Software for the banking industry must meet strict requirements and regulations. The ERP allows you to track compliance and facilitate accurate adherence to regulations.
- Uninterrupted communication between branches and departments. Using the ERP, you will not face the loss of important records in the process of sending.
- Elimination of errors. ERP reduces the likelihood of accounting errors by automating a large number of processes.
There are many strengths that you can take advantage of and positively influence the development of your banking business in the future.
Which Modules to Include?
The structure of the ERP for banking industry involves the implementation of many modules. You can choose any of them depending on your goals and needs. However, you should be aware of the main ones that are required for the financial sector. Make sure to include the modules to ensure that you:
- Track of profits. You need to know how the business uses assets, where the benefits come from, and which of your decisions had the greatest financial impact.
- Manage the registry. You should have access to all the information, so you need to use a module that will store it in one place.
- Analyze credit debt. What the amount of the loan is and when you have to repay it are important issues that the ERP will help you to keep in mind.
- Manage resources and funds. Keep track of equipment, technical equipment, offices, etc.
- Receive reports. Analyze your business’s financial position, monitor processes, and control expenses quickly and easily.
- Comply with tax regulations. Enable the module to set up regular deductions, view payments, and save time on everyday tasks.
- Manage risks. Monitor financial issues and work to prevent and resolve them.
Creating an effective ERP system takes time, but it is well worth the effort.
Creating the Software: A Step-by-Step Guide
While the development of enterprise resource planning will vary from case to case, here is a brief unified guide for implementing customized ERP solutions. It includes 5 mandatory steps.
Stage 1: Requirements Analysis and Planning
Define the key goals and objectives of the system, analyze the requirements and needs of the business, and select the people involved in the process.
Stage 2: Design Approval
Determine the budget and make a list of equipment, engineering solutions, and documentation. Prepare everything for the creation of the software itself.
Stage 3: Software Development
Prepare modules, develop connections between them and other devices, and complete the development part for further testing.
Stage 4: Testing
Check the system’s performance and staff readiness. Eliminate problems, if any.
Stage 5: Deploying the ERP
Implement the system in the workflow and observe how it copes with the tasks. Monitor progress and make changes as needed.
The creation of an ERP for the banking industry requires a large investment. The cost of involving the structure can range from $30,000 to $500,000 or more. However, its adoption is of great importance for business development and optimization of operations.