ⓘ Core banking


ⓘ Core banking

Core banking is a banking service provided by a group of networked bank branches where customers may access their bank account and perform basic transactions from any of the member branch offices.

Core banking is often associated with retail banking and many banks treat the retail customers as their core banking customers. Businesses are usually managed via the corporate banking division of the institution. Core banking covers basic depositing and lending of money.

Core banking functions will include transaction accounts, loans, mortgages and payments. Banks make these services available across multiple channels like automated teller machines, Internet banking, mobile banking and branches.

Banking software and network technology allows a bank to centralise its record keeping and allow access from any location.


1. History

Core banking became possible with the advent of computer and telecommunication technology that allowed information to be shared between bank branches quickly and efficiently.

Before the 1970s it used to take at least a day for a transaction to reflect in the real account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the data center only at the end of the day EOD.

Over the following 30 years most banks moved to core banking applications to support their operations creating a Centralized Online Real-time Exchange or Environment CORE. This meant that all the banks branches could access applications from centralized data centers. Deposits made were reflected immediately on the banks servers, and the customer could withdraw the deposited money from any of the banks branches.


2. Software

Advancements in Internet and information technology reduced manual work in banks and increasing efficiency. Computer software is developed to perform core operations of banking like recording of transactions, passbook maintenance, interest calculations on loans and deposits, customer records, balance of payments and withdrawal. This software is installed at different branches of bank and then interconnected by means of computer networks based on telephones, satellite and the Internet.

Gartner defines a core banking system as a back-end system which processes daily banking transactions, and posts updates to accounts and other financial records. Core banking systems typically include deposit, loan and credit-processing capabilities, with interfaces to general ledger systems and reporting tools. Core banking applications are often one of the largest single expense for banks and legacy software are a major issue in terms of allocating resources. Spending on these systems is based on a combination of service-oriented architecture and supporting technologies.

Many banks implement custom applications for core banking. Others implement or customize commercial independent software vendor packages. Systems integrators implement these core banking packages at banks.

Open source Technology in core banking solution or software can help banks to maintain their productivity and profitability at the same time.


3. Providers

While larger financial institutions may implement their own custom core, community banks and credit unions tend to outsource their core systems to system providers. While there is no consensus or a public register on the actual Core Banking Providers, various market research companies like Gartner or Forrester Research release annual deal surveys mentioning platform deals.

  • financial institutions to route financial transactions between ATMs, core banking systems and other banks. An ATMC is sometimes referred to as an EFTPOS
  • specialises in core banking that provides front and back end banking solutions known as eICBA system. The eICBA system consists of core banking system known
  • SWX Swiss Exchange TEMN Also in 2001, Temenos acquired a mainframe core banking application aimed at high - end retail banks, originally developed by IBM
  • The New York State Banking Department was created by the New York Legislature on April 15, 1851, with a chief officer to be known as the Superintendent
  • mid - 2000s online and telephone banking has become a mainstay of retail banking and most banks have incorporated these into their core services and transforming
  • Finacle is a core banking product developed by the Indian corporation Infosys that provides universal digital banking functionality to banks. In August
  • Partner. In 2011, Natech implemented its web banking suite to 4 Cooperative Banks, started to deploy its core banking solutions to currency exchange firms and
  • financial regulatory expert has said that regulated banking organizations are the largest shadow banks. The core activities of investment banks are subject to
  • In year 2006 this bank implemented Core Banking Services. DNS Bank is 1st Co - operative Bank to launch Mobile Banking Services in India. DNS Bank has adapted

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