6 Key Factors to Consider for Choosing the Right Transaction Banking Partner

Unlocking the secret to transaction banking success

With the world quickly adapting to the approach of modernisation, efficient fund transfers and cash management solutions are vital to a bank's success, to which transaction banking solutions are the key. The Digital Banking market has grown tremendously since the Covid-19 era ended, and Transaction Banking plays a significant part in this USD 9 Trillion industry (as per Global Market Insights).

But with so many partners offering solutions in the market, finding the perfect match can feel like searching for a needle in a haystack. This blog aims to provide a comprehensive discussion of the factors that banks consider to be of utmost importance when choosing a technology partner for transaction banking solutions.

1. Reliability and security

When it comes to transaction banking, handling large sums of money requires a reliable and secure platform from the technology partner selected by the bank. A track record of delivering dependable solutions that can handle high transaction volumes without downtime or system failures is crucial. Additionally, robust security measures to safeguard against cyber threats and fraud must be in place. Reliability and security are paramount when choosing a transaction banking partner.

2. Integration capabilities

Seamless integration is key as banks have a complex IT infrastructure with multiple systems and platforms. It’s important that the partner's solution can seamlessly integrate with the bank's existing systems without disrupting operations or requiring significant changes to the IT environment. The partner delivers business APIs to enable collaboration with customers and ecosystem partners.

3. Scalability and flexibility

Banks need transaction banking solutions that can scale up or down depending on their business needs. The partner's solution should be flexible enough to adapt to changing business requirements and be able to accommodate new products and services as they are introduced. A roadmap for future product developments and enhancements goes a long way in providing a one-stop solution to the banks.

4. Cost-effectiveness

When selecting a technology partner, it's important to strike a balance between cost and benefits. The partner's solution should be cost-effective and provide a clear estimate of the total cost of ownership over the lifetime of the solution.

5. Support and service

Behind every successful transaction is a great support team. When it comes to transaction banking solutions, having a partner that provides excellent support and service is crucial. The partner should have a reputation for top-notch customer service and be willing to work closely with your bank to ensure all your needs are met. They should have a dedicated support team that can respond quickly to any issues that arise. Furthermore, the partner should also provide training and documentation to help the bank's staff use the solution effectively.

6. Compliance and regulatory requirements

Transaction banking solutions must comply with various regulatory requirements, including anti-money laundering (AML) and know-your-customer (KYC) regulations. A technology partner, who possesses adequate knowledge and expertise, complies with relevant regulations and understands the regional regulatory landscape is essential. The partner should be proactive in keeping up-to-date with changing regulations and working closely with the bank to ensure compliance.

The success of transaction banking solutions lies in choosing the right partner. A partner who not only meets the banks' requirements but also provides reliability, security, flexibility, and scalability. The integration of the partner's solution with the bank's existing systems should be seamless, cost-effective, and compliant with regulatory requirements. A partner who provides excellent support and service should be the top priority. With all these factors considered, banks can make an informed decision and choose the right partner to help them navigate the ever-changing transaction banking landscape with ease.

About iGTB’s Digital Transaction Banking

The Digital Transaction Banking Enterprise Suite (DTB) from iGTB is a composable, cloud-native, integrated front-to-back transaction banking platform powered by microservices and open banking APIs. The platform is powered by comprehensive product coverage across cash management, account services, self on-boarding, liquidity management, virtual accounts, trade finance and supply chain finance. The pre-configured domain packs speed up the bank’s go-to-market product launch aided by an operationally ready suite of 130+ open banking APIs to help out consumer friendly innovative features. DTB enables banks deliver a superior and seamless customer experience. It provides an ability to banks’ to deploy new customers quickly, handle large volumes of transactions, improve operational efficiency and help reduce complexity and cost. More than 50 other global banking groups are benefitting from this world-leading solution which handles 50% of the total corporate collections’ transactions across APAC, India, the Middle East and Africa. For more information click here

About the Author -

Mousami Kshirsagar

Vice President and Head Solution Consulting - APAC, Middle East & Africa, iGTB Intellect