8 years ago

Digital Transformation and MySQL in the Financial Services Sector – Part 2

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IMAGE - Using MySQL to Improve the Financial Services Sector - PART 2

The first part of this article focused on digital technology and how it has overtaken practically every aspect of our life. It also talked about the importance of a stable and reliable digital infrastructure and how it can offer convenience for a much better business processes. It likewise enumerated the reasons why MySQL should be a part of the banking industry. 

Part 2 will still touch on the digitization of things and will highlight some points from the first article, but the focus is directed more on the advantages of building a reliable database management system using MySQL.

Technology is a major contributor to the way things are done today. But, it is not only our personal lives that technology has changed. The ways our businesses run have likewise been affected by the continuous advancement of technology. In the past, customers had to go from one shop to another to find what they needed. Nowadays, all you have to do is go online and look for the item you need in your favorite virtual store. Even the financial sector; the banking industry; has jumped ship and embraced digital transformation.

The Digital Advantage

Given the volatile landscape of the financial sector – unstable economy, new products and services, advancing customer demands – the change is fitting, especially for an industry that has been focused on traditional practices. Along with the growth of technology, customers also evolve. Likewise, the concept of banking has been given a new twist.

Today, when you talk about banks and banking, you are not just pertaining to keeping your money safe somewhere. You are also talking about salary loans, house loans, car loans, investments and insurance services. All of these changes point to one specific direction – digitization.

Why is there a need to digitize the banking industry? Because doing so will help banks perform better; customers will feel more secure and satisfied. There will be a lot of room (and opportunities) for products and services improvement. Business processes will likewise become more efficient, which will then lead to improved customer satisfaction.

One of the best technologies that banks should adopt is database management. A database management (DBM) system will help banks improve not only its performance, but also its reliability, availability, and growth. With a centralized system, customers will trust their banks more.

To make an institution’s digitization process more efficient and effective, database-driven application should be transferred into MySQL. It is not only one of the world’s most influential relational database management systems, it is also the fastest growing open-source RDMS and is used by sites like Facebook, YouTube, and Twitter.

MySQL in Retail Banking

Retail banking can benefit a lot from MySQL, specifically in terms of efficiency, reliability, security, and convenience.

A bank that has operations in different locations around the world will have improved efficiency once MySQL is integrated into its system. For example, when someone from the head office needs some customer data, the process becomes easier and shorter because all data are in one place. No need to call or move from one office to another. MySQL also has backup and recovery utilities and a framework that ensures absolute data protection.

Of course, with a database management system in place, expediency is a given. In the case of MySQL, however, convenience comes from the fact that it is able to deliver high quality performance and flexibility. It works and delivers fast, what with all its exceptional features like distinctive memory caches and high-speed load utilities. MySQL is also flexible because it is open source and therefore can be customized. Additionally, it supports Windows, Linux and UNIX.

Advantages of Using MySQL

Building a reliable database management system and using MySQL has several advantages, especially for small and medium size banks. Primarily, these advantages speak to the management and the IT department. Nevertheless, these will help banks perform better and provide maximized service to their customers. Here are the top benefits of using MySQL:

  1. MySQL is easy to use. Setting and implementing it is a simple process. It is a database system that does not require one to be a technical genius. In short, it is a database that anyone can easily work with.
  1. MySQL not only protects data to the core, it is also good in managing memory. No memory leaks here, so no need to fear.
  1. Since MySQL is an open source database management platform, support is very easy to find. There are thousands of developers who can help you when the need arises.
  1. MySQL is scalable. It can take care of a large amount of data. It can accommodate more or less 50 million rows.
  1. MySQL uses MyISAM, its default storage engine. MyISAM is super fast in retrieving information even from large data sets.
  1. And, last but not the least, MySQL is inexpensive. Well, of course, it depends on how it will be used. But, compared to other database management platforms, it is more affordable. And banks are partial to anything that performs well but is inexpensive.

MySQL offers the best performance in terms of data protection, speed, availability and support. In addition, its open source characteristic makes it really flexible.

The finance sector, especially retail banks, can benefit a lot from a system like MySQL. For one, it will help improve business operations, while also encouraging better productivity. With a good database management platform in place, banks will also be able to monitor performance, as well as customer satisfaction more efficiently. This will then drive them to come up with more innovative solutions.

Using MySQL as a database infrastructure is one way of ensuring increased agility and flexibility. Likewise, this will open more – and better – opportunities for the financial industry market.

This may just be one step into the digitization process of banks, but it is a big move towards getting ahead in the financial market. Adapting to the changes that technology has brought is not only about reaching out and listening to customers; it is also about wanting to change the industry for the better.

Photo courtesy of GotCredit.

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