The Core Banking or Core Banking is a business that a banking institution develops with its clients, retailers, or small companies, that is, it is a complete software platform, ranging from “front” to “back office”, management of the cycle of product life and information management for its customers, in order to boost the business operations of a bank. Core Banking basically refers to transactions, both deposits and money loans. You may also be interested in our article titled 5 advantages of banking software.

How does the Core Banking work today?

Currently, most banks make use of Core Banking applications in order to support transactions, using the concept of real exchange in centralized time, this means that all bank offices access the applications with data sources centralized. This means that the deposits that are made are immediately reflected in the bank’s automatic system, and the user can have the money at any bank agency worldwide.

This application also has the ability to give due attention to its corporate clients, providing solutions at the global banking level. About ten years ago, this type of operation took approx. 24 hours for the information reflected in the account to appear, since each agency had a local server, and these servers transmitted their data “in batch” at the end of the day to a central server for processing.

Core Banking Architecture

The Banking Core must make use of architecture focused on the service of end customers, which, being modular, allows financial institutions to implement and integrate the required functionality based on their needs and possibilities. Core Banking can be implemented and managed on its own site or under the software as a service (SAAS) model, that is, a cloud-based service model. SAAS offers quick and easy access to Core Banking software without the need for expensive infrastructure and specialized resources, making it an ideal option for banks that want and need to keep up with the current market, without the burden and complications of internal computer systems.

Core Banking Solutions

Core Banking solutions are applications based on a platform that supports a strategic and gradual approach, the objective of which is to allow banks to make improvements in their operations, reduce costs, and be prepared for growth. Core Banking solutions are made up of the platform in which information technology is combined with communication technology, in order to satisfy the basic needs of banking and therefore satisfy its customers. These “Core Banking” solutions manage and control all banking processes and activities: Treasury, services, credits, fixed assets, accounting, passive and active products, home banking, compensation, deferred expenses, branch platforms, and the client.

What do you think about this topic? Are you already using core banking?

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