Action Steps
The best contacts and resources to help you get it done

Integrate banking and finance software into your systems

The user-friendly options available in software for banking applications make using bank software providers easy and accessible for any business now. Small to medium and large-size companies can eliminate the need for extensive paper trails and the long management meetings with in favor of desktop software that can operate your entire workflow processes.

I recommend: Get all the front, back and middle office support you need with private banking software from International Private Banking Systems. Use the experienced team at IPBS for advice on which of their banking software systems is best for your needs. Use the suite of banking software solutions provided by Sungard to grow your business while keeping up with all the regulatory and technological changes as they occur.

Go online for web-based bank software providers

For many of the newer online programs you don't even have to download any special software to your systems if you choose to engage web-based banking software companies. These operations typically allow you a trial period, which you should take advantage of as well. With many of the bank software programs, you can even let the providers host your site so little is required of your IT team to implement the system.

I recommend: Treasury Software offers a hosted web-based commercial banking software applications that you can use to manage all your financial services needs from trusts and payment services to payroll and credit card transactions. Increase profits and dominate your commercial markets through your website with banking and finance software from eDominate.

Get your team using software for banking applications

Once you've opened up the possibilities of running your business with the assistance of bank software programs, you need to get your team onboard with the programs. Instead of calling on consultants to handle projects, your managers should be able to use their own desktops to display reports and manage marketing projects.

I recommend: Probanx can provide entire turnkey operations for you while you become accustomed to using the software for banking applications they install. Get your team on board with banking software systems that are easy to use and integrate into your daily operations with software from SIT Portfolio Plus.

Helpful advice for making the most of this Guide

• •  Before choosing banking software companies, let your key employees try the free demos offered by the firms to see if they agree on the choice of programs. It will be easier to get buy-in from your staff if everyone participates in the final decision.

Guide to Banking Software

Streamline customer relations and keep sales on track with banking software systems

By Greg Brown

Action Steps
The best contacts and resources to help you get it done

Selecting core banking system software

The primary banking software systems handle the traditional functions of a bank: deposits, withdrawals, check handling, debit and credit card accounts and savings accounts, like money markets and certificates of deposit. For international bank systems, core banking can include multi-currency bank software, foreign exchange and ACH automated check clearing.

I recommend: Take a look at core banking software systems from Precision Computer Systems, i-Flex Solutions, Temenos, and Probanx. Info-tech giants IBM and Oracle are working in this space as well.

Learning about loan origination and servicing bank software

The way banks make money is by lending. And that takes scores of sales people working phones and following up on leads. Online banking software designed for loan origination or loan servicing can keep that sales effort on track. Loan origination bank software is meant to be simple to use but flexible enough to handle varying lending scenarios even if sales people are inexperienced.

I recommend: Generally, online banking software for loan origination integrates with web sites that capture initial customer data as leads. Some of the top loan origination banking software systems include Calyx, Byte, LoanAce, and FICS.

Customer relationship management and cross-selling bank software are key

Chances are, you interact with your bank or credit card company over the phone as much or more than in a branch. That's where customer relationship management (CRM) banking software comes in. Using the right CRM bank software means your customer-facing front line can up-sell and cross-sell at each touch with all the current data for that customer in hand.

I recommend: The online banking software CRM market is full of huge tech players, including Oracle, Onyx, SAS, Infosys, Microsoft, and SAP. Increasingly, too, there are web-only options, like Salesforce.com.

Financial risk management and investment management bank software

nternational and private banks, as well as investment banks, use banking software systems for financial modeling and customer relationship selling. Bank software is available for tracking trades, investment analysis and other banking software needs, including foreign and international bank transactions.

I recommend: The more sophisticated the bank software installation, the more likely your institution is to hire a developer or system integrator to consult on the purchase and how to integrate advanced bank software into your legacy banking software systems. Some investment management software suites include FundCount, Infinity Info, and GCI Financial.

Helpful advice for making the most of this Guide

• •  Often the key to getting the most from multiple banking software investments it to ensure that they will work together. Consider hiring a consultant before signing off on a new system.
• •  Most, but not all, bank software systems will work with legacy banking systems. If not, your investment might need to be larger than planned.
• •  Look carefully at Web-only or Web-centered online banking software systems. If the security is right, it can save money by allowing for distance workers to log-in and sell.
• •  Bank software cannot replace salespeople, but it can make them -- if properly trained -- much more productive. Budget for training classes as well as bank software.

Action Steps
The best contacts and resources to help you get it done

Share information with other banking software users

Blogs are increasingly becoming the media of choice for many small business owners looking for quick and efficient means to communicate with other like-minded professionals. Find an Internet blog that provides trustworthy information on banking software solutions and attracts reliable posting participants. Participate in trade groups that extend additional information about banking software news and trends.

I recommend: Get email alerts and updated information on banking software systems from the American Bankers Association. The Technology Center at the Independent Community Bankers of America provides regular updates about advances and regulations concerning bank software programs.

Read up on changes in banking and finance software

Banking software news and trends continue to dominate many of the financial industry publications available online and in hard copy print versions. While you may get email alerts from providers of banking software, it's a good idea to stay on top of the industry as whole so that you can know about changes that may be ahead of your current provider's abilities.

I recommend: Net Banker is an industry publication that tracks news and trends regarding banking software systems, security and Internet banking applications. Subscribe online to CFO.com to get all the latest news that bankers and financial professionals need to keep up with the changes in banking software.

Receive commercial banking software alerts

While most business owners are trying to clear out their in-boxes to save time, you should allow at least one banking and finance software information provider to get into your email with alerts about changes and upgrades that others in the industry are employing. You shouldn't miss out on vital bank software alerts just because you want to avoid spam.

I recommend: Receive regular news and information about IT affecting the banking industry from the Journal of Internet Banking and Commerce. Banking Technology is another must-read for professionals who need to stay connected to the emerging IT markets affecting banking and financial institutions.

Helpful advice for making the most of this Guide

• •  Develop a culture of sharing information at your business. Ask each of your employees to regularly read at least one banking software newsletter or magazine and share the banking software news and trends they've uncovered at staff meetings.

Action Steps
The best contacts and resources to help you get it done

Straight Through Processing

Straight through processing (STP) allows transactions in the securities markets and banks to be conducted electronically. It is subject to regulatory restrictions. Banking software is designed to do straight through processing.

I recommend: TechTarget describes this in more detail.

Portfolio rebalancing

Portfolio rebalancing is the act of bringing a portfolio of investments into line when it has deviated away from originally established targets. Banking software can be designed to do this and include this in its suite of offerings.

I recommend: Morningstar describes this as an essential function of managing a portfolio of investments.

Mortgage pools

A mortgage pool is a compilation of similar financial instruments that are collected and are resold. There is banking software on the market that is designed to do this.

I recommend: There is a simple definition of this term on InvestorWords.com.

Commodity pools

A commodity pool is a fund that collects a combination of contributions from investors that would otherwise not be able to invest in a type of instrument such as commodities. Banking software can process commodity pools for investors.

I recommend: A good resource for learning more about commodity pooling can be found at Investopedia.

High water marks

A high water mark is also known as a loss carry forward provision and is a method for calculating fees in a hedge fund. It means that a manager of a hedge fund receives performance fees only when there are increases in the net asset value of the fund when compared to the highest net asset value it received previously. Banking software that is used in hedge funds has this provision built into the program.

I recommend: The Hedge Fund Group has a more complete definition of this term as well as other terms associated with this type of investing.

Hurdle rates

The hurdle rate is the rate of return that is minimally attractive and is also known as the MARR or minimal acceptable rate of return. Many companies use 12% as their hurdle rate. This percentage is based on the fact that the S&P 500 yields returns somewhere between 8% and 11% on an annualized basis. Banking software programs have hurdle rates factored into their calculations when they are being designed.

I recommend: Solution Matrix describes this term further.