Why Banks Need ERP Systems

Anna Khrupa by Anna Khrupa on March 10, 2020

Why Banks Need ERP Systems
Reading Time: 3 minutes

Banking industry is growing constantly offering more wider range of services and activities. This sector is actively adopting IT technologies as well to facilitate the working routine and implement the best solutions.

Data management is one of the biggest challenges that banks might encounter. There are diverse and ​is one of them. This is one of the best  ​that will be extremely beneficial in the banking field. But before you will find out what are the upsides of ERP system for a bank, let’s get a better understanding of what an ERP system is.

What Is an ERP System?

Enterprise Resource Planning or simply ERP is a software that allows any organization or business to perform their daily activities faster and easier. These include accounting, risk management, project management activities, supply chain operations, human resource management and so much more. An ERP system also helps to get reports on financial results of a company. It integrates all the information, customers, vendors and processes to achieve better results and more smooth and productive workflow.

ERP software is widely used be many industries but for banking sector this ​finance manager software​is crucial in order to attain the effective processes. Banking system is wide and complex, it deals with some operational challenges and issues, handles large volumes of information, has security concerns related to secrecy maintenance and should comply with certain industry regulations. ERP is a great solution in this case to leverage all banking processes such as creating financial reports, account management, ​cash accounting, payment processing as well as security management.

Benefits of Using ERP System in Banking

An ERP system provides employees with a flexible yet less complex IT structure to cope with job-related activities faster.​​Here are some more benefits of using such financial management software.​

Increased Efficiency

All banking processes are integrated in the one platform. Easy and fast access to all data needed across the whole bank and all the departments. All daily tasks, such as creating reports or filling in the data, are already automated with an ERP system. It’s possible to review the main KPIs on a dashboard as well so that managers can quickly flick through it. In addition, ERP also eliminates the repetitive working processes.

Smooth Collaboration

ERP enables effective and smooth collaboration between colleagues from different departments. Moreover, an ERP system facilitates the collaboration with remote teams. An offshore or nearshore team will be available within a few clicks to ensure the productive workflow.

Increased Data Security

An ERP system offers firewalls to lower the risks of data breaches. You will get one data warehouse and all access points will be easily monitored and security level will be much higher. It will be possible to restrict faster the access of terminated employees and give access to newly hired it outsones. An ERP system allows to detect unauthorized or suspicious activities as all banking activities will be available to the admin.

Your ERP system needs to be tailored to YOUR business.

Reduced Operational Costs

An ERP system can also help you save on operational costs and cut down the budget. All processes are streamlined and monitored, therefore the eventual breakdowns or disruptions will be prevented or quickly eliminated. Addressing any occurring issues will be much easier and faster and this enables to save on operational expenditures.

Strict Compliance with Regulations

Banking sector has to deal and comply with various industry rules and regulations. An ERP solution incorporates regulatory standards and report on compliance to help banks meet these strict requirements with ease.

As you can see an ERP system can be an asset for banking industry. The advantages are immense. In order to take the overall productivity to the next level and facilitate daily activities an ERP system is mandatory to be tried out.