How Implementation of ERP in Banks is a Major Success Factor in Financial Performance

1. How Implementation of ERP in Banks is a Major Success Factor in Financial Performance Enterprise Resource Planning (ERP) is an enterprise software designed for use by large organizations. It usually requires a dedicated team to customize, analyze data, upgrade and deploy it. This software manages business processes and typically integrates them in a single package. ERP is a critical solution to help banks meet increasing demands of customers and data management pressure. Massive bank operations from customer management to product marketing suggest a huge potential for ERP application. Through ERP, a bank can achieve extensive integration of its various modules. By bringing together users, information and processes, a bank can achieve significant productivity. With today’s tougher competition and rapid demands change, the banking strategy only needs to get better. More the data to handle, more the legal and regulatory requirements to secure the environments more. While these requirements are met, banks need to maintain flexibility and effectiveness. ERP solutions help enterprises in these endeavors. It is also an IT solution for fast return as well as reduction of operational costs. Benefits of ERP Here are the benefits of ERP to the Banking Industry: ● Improved Decision Making It supports decision making significantly for strategic, tactical and operational planning. ERP solutions consolidate various technologies and thus help in effective communication, time- saving and cost reduction. Its implementation across departments means a single unified reporting system for all processes. An institution has one source of truth and can readily generate reports and analysis. ERP removes the hassle of using multiple spreadsheets and emails to compare the functions of various departments. It has built-in financial reports, and you can also customize other reports easily without IT intervention. A remarkable feature of ERP solutions is that they come with Business Intelligence (BI) services. BI provides deeper analytical insight into business operations.

2. ● Enhanced Customer Service The inherent nature of ERPs to eliminate repetitive tasks of maintaining spreadsheets provides benefits to customers. Sales team can concentrate on improving customer relationship for better services. It also streamlines and centralizes information. The insight and end-to-end tracking ERP offers enhanced customer interaction. Thus, it pushes a long way in customer acquisition and retention. Furthermore, the integration of ERP with e-commerce helps to avail web-based transactions processing and better customer interactions. ● Reduced IT costs and Efficiency Enhancement Although ERP is a substantial investment, it is a one-off cost. It unifies your IT costs and creates much efficiency. Without ERP, it would mean to have multiple systems all with separate infrastructure, dedicated staff and support team. You can consolidate all these needs into one ERP at less cost. No need to spend on training staff on different systems as they need to learn only one system, the ERP. Additionally, the design of ERP is modular. It can allow the bank to use only those pieces that align its needs. For instance, a bank can consider to include the functional areas that matter like customer resource management, human resource management, and accounting. It can also consider integrating third-party systems. ● Improved Data Quality and Security Data quality and security are issues considered to have much prominence in banking institutions. Regulatory requirements point to data security a great deal to safeguard customers’ interests. ERP concept is data-based. Sharing of data across departments enhances collaboration for data control. ERP solutions provide central controls to ensure data security. It authenticates who sees or edits information. ERP offers a single input system, and this serves as a parameter for a high level of data security. It eliminates conflict that can step from merging information from multiple systems by providing a single repository. The security, consistency, and accuracy of the institution’s data are enhanced. ERP guarantees security even for cloud-based solutions users. Cloud ERPs offer an extra layer of security due to the use of round-the-clock security experts.

3. ● High Scalability A right ERP system accommodates an enterprise growth. Every business must focus on having ongoing success. A system that supports this endeavor is of utmost importance. Growth in a business may mean expanding the customer base, entering new markets or launching a new process or a product. This would suggest adding new functionality to your system. The good news is that ERP allows the addition of a new performance to the platform. Therefore, a bank cannot experience growth pains or experience roadblocks in their path to progression. ● Standard Business Processes across the Industry Most ERP developers consider industry best practices while developing ERPs. They also bring on-board tried and true processes. This helps to standardize what ERPs have on offer to businesses of all sizes. For instance, Finacle ERP is a standard for all banks that use it. It can help align processes and systems for better productivity or efficiency. Banks continue to report significant improvement with enterprise resource planning services. They can handle large transactions quickly and efficiently. They have managed to launch new products and service and also increased customer satisfaction. ERP is an endless opportunity to improve enterprise performance.