A core banking system helps banking and financial institutions integrate different services and create a simple and versatile structure for conducting banking operations. The main objective of a banking core is to improve the end-user experience and increase the efficiency, productivity, and profitability of the system. Core banking has a series of special characteristics, among the most outstanding are the following:

Reliability

A banking core must be designed and focused on supporting high volumes of transactional load (from thousands to millions of daily transactions). Users should not be affected in their ability to generate new transactions, and much less, the capital or resources that users have in their respective bank accounts should be affected. A banking core must inspire confidence in its users, since only in this way will it be possible that people continue to use the platform.

Availability

Customers should be able to access their banking or financial services 24 hours a day, 7 days a week, and 265 days a year. This is achieved thanks to an automated system (which does not require a person’s intervention) and a stable system (which does not present constant failures).

Microservices architecture

As we saw in our previous article, a core banking system tends to be implemented using separate microservices. This will allow banks to gradually carry out migration programs, which provides benefits for the financial institution, making use of the autonomous capabilities offered in microservices. This architecture allows banks to make changes according to their needs, as their priorities change or evolve.

Contingency management

A core banking must have several contingency mechanisms, both locally and remotely, which guarantee the continuity of the service in the event of an accident or fortuitous event, for example, if there is a failure of a server, there should be another backup server for the service to continue, without the quality of the service being affected.

Security

The banking core must have different security systems, in addition to applying the latest generation actions in terms of security; among the most outstanding systems and actions are:

  • Anti haking engines based on artificial intelligence.
  • Vulnerability scanning.
  • High precision facial recognition systems.
  • Drills.
  • Verification processes.

Flexibility and low cost

The banking core must have a flexible platform and infrastructure that allows the service they provide to improve and evolve (continuously) to be more competitive and maintain good relationships with their customers. This type of platform is cheaper and easier to implement, which avoids incidents that occur with its own platforms, which tend to be more expensive and less flexible.

User experience

It is essential that the banking core can provide a good experience to the end-user, this is generally achieved with a highly intuitive and versatile platform; likewise, the platform must have a channel where it can receive direct feedback so that users can thus finally make their recommendations and suggestions, which will allow to improve the system constantly and make the user experience improve significantly.

What do you think about this topic? What other characteristics do you think a good banking core should have?

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