ERP for Banking: Integrate Data, Processes & Analytics

Digital technologies are having a profound effect on today’s banking players. Customer demands and new economic realities are compelling banks to leverage technological solutions. An Enterprise Resource Planning (ERP) system can be a valuable ally to banks in their efforts to gain agility, drive operational efficiency and match customer expectations.

The strategic priorities of banks have shifted from managing loans and risks to managing assets and providing financial services. The banking experience too has changed from generic, one-size-fits-all to on-demand and personalized. The data needs of the banks have shifted from limited analytics to real-time data intelligence. ERP software can be the perfect ally for banks looking to cater to the modern needs of the customers and realize higher operational efficiency.

Take the example of Austria-based Erste Group Bank. The banking group caters to the needs of 16.2 million customers through more than 2,600 branches located across seven countries. The bank was facing several challenges like their IT landscape became too complex to make upgrades expensive and business processes deviated from best practices and were slow to adapt to new customer needs. To modernize its IT landscape, the banking group implemented an ERP system and the results have been excellent. Some of the benefits the bank realized from their ERP implementation initiatives include:

1. Higher transparency leading to faster reporting and empowering quick decision-making
2. Optimized back-end processes leading to higher operational efficiency
3. Better compliance with international accounting standards
4. Better user experiences

And they found a digital core to integrate the enterprise and drive innovation.

Banks have wide and complex processes and they face operational challenges and issues, handling millions of transactions every day, large volumes of data has concerns related to data security and the need to comply with tighter industry regulations. An ERP system can help the bank to integrate its various operations, optimize its processes, better leverage data and enhance its data security. But, more importantly, it can help banking organizations adapt to foreseen and unexpected changes.

ERP implementation can be overwhelming for many banks as ERP systems are complex solutions. Also, the costs of failure are high. Nike lost over $100 million dollars in sales and a 20% drop in its stock prices due to ERP implementation failure. The company also had to face numerous lawsuits.

That was in 2000 and with experience, the success rate of ERP implementation has improved and now we don’t see major implementation failures. But organizations looking to implement an ERP system must plan it methodically and take a best practice-driven approach.

An experienced ERP implementation partner can help you implement it in your bank successfully. We, at Gemini US Consulting & Services, have helped several financial institutions, including some of the leading banks around the globe in implementing ERP systems as well as migrating to a new one. To understand how we can help you choose the right ERP system for your bank and improve efficiency and customer service, click here.

1. Data-Driven Intelligence: Banks need real-time intelligence to personalize customer experiences. AI technology in ERP can help them better leverage data to understand customer desires and outcomes.
2. Business Process Improvements: ERP software can play a huge role in improving the business process. As a unified platform, it can help automate manual or routine tasks, implement smarter and optimized workflows to help banks gain higher efficiencies.
3. Quick Decision Making: ERP software can ensure smooth information flow across the organization. It also improves reporting across the organization to help in informed and reliable decision making.
4. Financial Insight and Risk Control: Implementing an ERP system will allow banks to explore new business and finance models. It will also help them meet regulatory requirements effectively.
5. Live Operations Monitoring: Banks need to monitor and manage many live operations like cash accounting, ATMs and digital wallets etc. An ERP system can be a great help in monitoring the live operations of the banks.