Core banking is a system that a banking institution develops or provides for its clients. Banks currently make use of core banking applications to provide support in their operations, using “centralized real-time” exchange as a priority concept, basically, it means that all bank offices have access to source applications. of centralized data, which means that the deposits or transfers that are made are immediately reflected in the bank’s automated systems, with the client being able (if they wish) to withdraw the money deposited in an agency or bank ally at any Place of the world.

The Core Banking system

It is a back-end system whose function is to process all those banking transactions that the bank carries out daily, updating its clients’ accounts and other financial records. This system can include operations related to deposits, credit processing capacity, loans, an interface to the bank’s general accounting systems, and tools that allow the generation of daily reports (or that are needed at a certain time). The strategic approach of these systems is based on a combined architecture, which is oriented to provide support technology services that create complementary architectures.

Importance of the Core Banking system

The Core system is the most important asset of a bank, as it will have a great impact on both the operations and the services it can offer. The Core system must be prepared so that digital technologies facilitate new business models, a large part of the budgets of a bank today must be allocated to the Core system, since the systems are the backbone of a bank’s operations, Therefore, investment in this sense towards modernization (which is more demanding every day) cannot be neglected. The use of new technologies that promote more customer participation, develop new products, analyze data, among other services cannot be ruled out.

System implementation

Replacing the technological architecture of a banking institution is not a quick or easy process. Generally, every innovative business process (that accompanies a new platform) must be profitable and efficient, it must also have the best practices and work with teams that are aligned with the mission (long before the system is implemented), only from This will ensure that the investment is profitable and meets its objective.

When a bank makes the decision to implement a system, having good partners and proper direction can make the fundamental difference for success since successful implementation requires a clear focus, commitment, and adaptability from all those involved in the decision. especially the bank’s leadership team. This system must be supported by principles that guarantee flexibility, ease of maintenance, scalability, and openness. Therefore, it is necessary to consider adopting a new system rather than trying to adapt an old legacy architecture. Likewise, it is vital to maintain the implementation based on open standards that facilitate integration with other tools and technologies.

What do you think about this topic? Do you consider the implementation of a Core Banking system important?

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