What Are The Various Function Of Core Banking Systems?

The introduction of technology and the latest innovation in the banking sector has led to immense growth and development. The best core banking solutions are an integral part of banking systems. They aim to provide a relaxing and comfortable banking experience to customers. The core banking services break the age-old barriers and bring accessibility with convenience. 

Let us unveil various functions and characteristics of core banking systems.

  • What is the Core Banking System?

Core banking systems take care of the bank’s routine and day-to-day activities. The best core banking solutions are objective-oriented and tailor-made to suit customers’ varied needs. Core banking solutions are account management services. It includes both front-end and back-end processes. 

The top core banking systems emphasise core banking solutions to streamline their operations and offer a comprehensive banking service to their customers. It creates a centralized approach to take care of all the banking services such as fund transfer, managing and accessing bank accounts, performing various bank transactions and much more. 

  • Origins of Core Banking

The history of core banking is elaborated. The banking sector has witnessed tremendous growth and development lately. The technological advancements, liberalisation and fast development in the IT sector have accelerated the progress of the banking industry. The core banking solutions emerged post the computerisation of banks in the 1980s. Initially, computerisation and advancements were a big challenge for central banks. They would find it difficult to adapt and keep pace with new systems. However, things changed drastically in the post-1990s. The banking sector’s innovative ideas and modern tools made the transition easy for the banks. Soon, the top core banking systems were introduced, and centralisation of the data came into existence. 

  • Impact of core banking solutions

The core banking system of various banks has drastically changed the outlook of the modern Indian banking system. It has not only streamlined banking operations but also has drastically improved customer satisfaction. The competent services have maximized customer satisfaction whilst adding more convenience to banking transactions. The core banking services have made banking services more easily accessible and reachable. It has also substantially reduced the need to physically visit the bank. Moreover, core banking services have set the paperless and branchless cult in the Indian banking sector by efficiently restructuring the banking systems.

  • Strategies of Core Banking System

Core banking systems are strategic. They are based on the analytics and requirements of the customers. Banks seek professional assistance to develop the best core banking solutions and software to meet and exceed the customer’s expectations. The core banking system is embedded with an advanced and straightforward interface. They are loaded with advanced features and aim to automate the banking process.

  • Characteristics of Core Banking Systems

A core banking system is an operating system or software that introduces one to the primary and essential features of the bank. Using core banking solutions, one can retrieve necessary bank account information and initiate transactions such as fund transfers. The best core banking solutions are tailored and bespoke as per the bank’s requirements. 

Some significant features of the top core banking system include:

  1. Opening new accounts in the bank
  2. Cheque clearance
  3. Managing customer information
  4. Maintaining customer relationship
  5. Calculating and managing interest rate
  6. Assists in developing new banking products
  7. Banking analytics
  8. Calculating loan interest
  9. Working Loans & related Activities
  10. Processing money deposits/ cash withdrawal
  11. Manage RDs, FDS etc
  12. Access to banking products like internet banking, mobile banking, ATM etc.

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