Improve Core Banking with Faster Analytics and Back-End Processing


terracottaThis article was originally published by Gagan Mehra on Terracotta’s Blog, here.

Can you improve core banking with faster analytics and back-end processing? We think so!

A recent report estimated that between 2009 and 2014, the total number of U.S. online banking households will increase from 54 million to 66 million. This growth will result in increased load on the core banking systems, making it a bigger challenge to support the required performance. Performance is already a big factor in the success of a core banking system with the rapid increase in adoption of internet banking and mobile banking channels. A quick and easy way to overcome performance challenges is offered by In-Memory Data Management (IMDM). IMDM not only can scale to manage terabytes of heterogeneous data in-memory but can also do that with guaranteed latency in the low milliseconds. IMDM can improve core banking in the following three areas:

1. Faster online transactions: The performance of the core banking functions, offered through the internet and mobile channels, can be improved by integrating with IMDM. IMDM can maintain frequently accessed data like customer data, product information, offer information, etc., in-memory to improve the performance of online transactions. Faster transaction processing enables offering more personalized services resulting in increased rate of attracting and retaining customers.

2. Faster analytics: IMDM is being adopted by banks to transition from a batch reporting environment to a real-time reporting environment. IMDM can hold large data sets in memory whether those are banking transactions for the day, historical transactional data or a combination of the two. All this data in-memory reduces the time it takes to generate reports,leads to faster identification of insights and, as a result, faster action.Faster analytics also leads to faster identification of fraud that could prevent billions of dollars in losses.

3. Faster back-end processing: The overall performance of core banking systems and other interfacing systems like loan processing, general ledger,etc. can be improved by using IMDM to hold key data entities like credit information, customer transaction history, loan process details, associatedrules, etc. If the bank is already using straight through processing, IMDM makes it even faster by maintaining key data assets in-memory.

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