Core banking
Encyclopedia
Core banking is a general term used to describe the services provided by a group of networked bank
branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.
Nowadays, most banks use core banking applications to support their operations where CORE stands for "centralized online real-time exchange". This basically means that all the bank's branches access applications from centralized datacenters. This means that the deposits made are reflected immediately on the bank's servers and the customer can withdraw the deposited money from any of the bank's branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution.
A few decades ago it used to take at least a day for a transaction to reflect in the 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 datacenter only at the end of the day (EoD).
Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATM
s, Internet banking, and branches.
Core banking solutions is new jargon frequently used in banking circles. The advancement in technology, especially Internet and information technology has led to new ways of doing business in banking. These technologies have cut down time, working simultaneously on different issues and increasing efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as core banking solutions. Here, 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 communication lines like telephones, satellite
, internet
etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working.
Gartner defines a core banking system as a back-end system that 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. Strategic spending on these systems is based on a combination of service-oriented architecture and supporting technologies that create extensible, agile architectures.
packages.
While many banks run core banking in-house, there are some which use outsourced service providers as well. There are several Systems integrators like Accenture, IBM and HP which implement these core banking packages at banks.
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.
Core banking
Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the corporate banking division of the institution. Core banking basically is depositing and lending of money.Nowadays, most banks use core banking applications to support their operations where CORE stands for "centralized online real-time exchange". This basically means that all the bank's branches access applications from centralized datacenters. This means that the deposits made are reflected immediately on the bank's servers and the customer can withdraw the deposited money from any of the bank's branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution.
A few decades ago it used to take at least a day for a transaction to reflect in the 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 datacenter only at the end of the day (EoD).
Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s, Internet banking, and branches.
Core banking solutions
Core banking solutions are banking applications on a platform enabling a phased, strategic approach that is intended to allow banks to improve operations, reduce costs, and be prepared for growth. Implementing a modular, component-based enterprise solution facilitates integration with a bank's existing technologies. An overall service-oriented-architecture (SOA) helps banks reduce the risk that can result from manual data entry and out-of-date information, increases management information and review, and avoids the potential disruption to business caused by replacing entire systems.Core banking solutions is new jargon frequently used in banking circles. The advancement in technology, especially Internet and information technology has led to new ways of doing business in banking. These technologies have cut down time, working simultaneously on different issues and increasing efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as core banking solutions. Here, computer software is developed to perform core operations of banking like recording of transactions, passbook
Passbook
A passbook or bankbook is a paper book used to record bank transactions on a deposit account. Depending on the country or the financial institution, it can be of the dimensions of a chequebook or a passport....
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 communication lines like telephones, satellite
Satellite
In the context of spaceflight, a satellite is an object which has been placed into orbit by human endeavour. Such objects are sometimes called artificial satellites to distinguish them from natural satellites such as the Moon....
, internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
etc. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This new platform has changed the way banks are working.
Gartner defines a core banking system as a back-end system that 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. Strategic spending on these systems is based on a combination of service-oriented architecture and supporting technologies that create extensible, agile architectures.
Select core banking application package vendors
Many banks implement custom applications for core banking. Others implement/customize commercial ISVISV
The initialism ISV may refer to:* Internal security vehicle* Independent software vendor* International scientific vocabulary* Cardiff International Sports Village* International Standard Version of the Bible* International Student Volunteers...
packages.
| Package | Provider |
|---|---|
| BankFusion Universal Banking | Misys Misys Misys plc is a business that makes and sells software to banking, investment, and, formerly, to medical businesses. The company merged its healthcare information technology division with Allscripts in 2008... |
| CSB Natech Natech S.A. is an ISV specializing in Financial and Business solutions.-Company profile:Natech S.A. – Integrated IT SolutionsFounded in 1983 under the trading name Computer Store, the company has focused in delivering highly customizable and robust IT solutions mainly to cooperative institutions... |
Natech Natech Natech S.A. is an ISV specializing in Financial and Business solutions.-Company profile:Natech S.A. – Integrated IT SolutionsFounded in 1983 under the trading name Computer Store, the company has focused in delivering highly customizable and robust IT solutions mainly to cooperative institutions... |
| Misys Equation | Misys Misys Misys plc is a business that makes and sells software to banking, investment, and, formerly, to medical businesses. The company merged its healthcare information technology division with Allscripts in 2008... |
| Misys Midas Plus | Misys Misys Misys plc is a business that makes and sells software to banking, investment, and, formerly, to medical businesses. The company merged its healthcare information technology division with Allscripts in 2008... |
| Finacle Finacle Finacle universal banking products are designed to address the core banking, e-banking, Islamic banking, treasury, wealth management and CRM requirements of retail, corporate and universal banks. It is developed by Infosys, and is one of the major players in the arena of core banking in Indian and... |
Infosys Infosys Infosys Limited, formerly Infosys Technologies Limited is a global technology services company headquartered in Bangalore, India. It is the second largest IT exporter in India with 133,560 employees as of March 2011. It has offices in 33 countries and development centers in India, China,... |
| CFT-Bank | Center of Financial Technologies (CFT) |
| Alnova Financial Solutions | Accenture Accenture Accenture plc is a global management consulting, technology services and outsourcing company headquartered in Dublin, Republic of Ireland. It is the largest consulting firm in the world and is a Fortune Global 500 company. As of September 2011, the company had more than 236,000 employees across... / Alnova |
| TCS BaNCS TCS Bancs TCS BαNCS is a market ready universal financial platform for banking, capital markets and insurance, offered by TCS FS , the strategic business unit of Tata Consultancy Services Limited .-External links:* * *... |
Tata Consultancy Services Tata Consultancy Services Tata Consultancy Services Limited is a global IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India... (TCS) |
| Bankway | Fidelity National Information Services Fidelity National Information Services Fidelity National Information Services, Inc. , also known as FIS, is a publicly traded corporation and is a global provider of banking and payments technology solutions, processing services and information-based services... (FIS) |
| Corebank | Fidelity National Information Services Fidelity National Information Services Fidelity National Information Services, Inc. , also known as FIS, is a publicly traded corporation and is a global provider of banking and payments technology solutions, processing services and information-based services... (FIS) |
| SAP Banking Services | SAP AG SAP AG SAP AG is a German software corporation that makes enterprise software to manage business operations and customer relations. Headquartered in Walldorf, Baden-Württemberg, with regional offices around the world, SAP is the market leader in enterprise application software... |
| FLEXCUBE | Oracle Financial Services Software |
| DIGIBANK | Oracle Financial Services Software |
| Hogan | Computer Sciences Corporation Computer Sciences Corporation Computer Sciences Corporation is an American information technology and business services company headquartered in Falls Church, Virginia, USA... |
| Insite Banking System | Automated Systems, Inc. Automated Systems, Inc. Automated Systems, Inc. provides integrated technology systems and solutions to financial institutions. Automated Systems has established a Gold Certified Partner status in the Microsoft Certified Partner Network with a competency in Networking Infrastructure Solutions for seven consecutive years.... |
| ICBA | Infopro Sdn Bhd Infopro Sdn Bhd Infopro Sdn Bhd is an ISO 9001:2000 and a CMMi Level 3 certified Malaysian based software house that specializes in core banking solution that provides front and back end banking solutions known as eICBA system... |
| Profile (software) (formerly Sanchez Profile) | Fidelity National Information Services Fidelity National Information Services Fidelity National Information Services, Inc. , also known as FIS, is a publicly traded corporation and is a global provider of banking and payments technology solutions, processing services and information-based services... (FIS) |
| SAB / SAMIC | SAB SAB SAB may stand for:In businesses:* Sabena, a former airline company* The School of American Ballet in New York City* SAB, a French Core Banking company* South African Breweries* Shipping Association of BarbadosIn literature:... |
| SFB / SCB | UNISYS Unisys Unisys Corporation , headquartered in Blue Bell, Pennsylvania, United States, and incorporated in Delaware, is a long established business whose core products now involves computing and networking.-History:... |
| Signature (software) | Fiserv Fiserv Fiserv, Inc. provides information management systems and services to the financial and insurance industries. Leading services include transaction processing, outsourcing, business process outsourcing , software and systems solutions. The company serves more than 16,000 clients worldwide... |
| Systematics | Fidelity National Information Services Fidelity National Information Services Fidelity National Information Services, Inc. , also known as FIS, is a publicly traded corporation and is a global provider of banking and payments technology solutions, processing services and information-based services... (FIS) (formerly Systematics, Inc Systematics, Inc Systematics Incorporated was a data processing company acquired in 1968 by Arkansas superinvestor Jackson T. Stephens. In 1990 it was sold to Alltel Corporation, and today is a part of Fidelity Information Systems.... / Alltel) |
| TEMENOS T24 | Temenos Group Temenos Group Temenos Group AG is a software company specializing in core banking systems.-Company profile:Founded in 1993 and listed on the Swiss Stock Exchange , Temenos Group AG is a provider of banking software systems to retail, corporate, universal, private, Islamic and microfinance & community banks... |
| CoreSoft CoreSoft Core Banking Solution CoreSoft is a browser-based core banking solution developed and owned by VSoft Corporation, a company based in Duluth, Georgia, US. CoreSoft is developed for deployment in North America and Atlantic regions, it being compliant with the regulatory standards of the region.CoreSoft supports multiple... t, SuVikas Suvikas SuVikas is a browser-based core banking software developed by a Bangalore-based company Coopman Consultancy for Urban Co-Operative Banks, Rural Co-Operative Banks, District Co-Operative banks, State Co-Operative Apex banks, Regional Rural Banks and Credit societies in India and Asia region.The... |
VSoft Corporation VSoft Corporation VSoft Corporation is an information technology company headquartered in Georgia, US. The company has its Research and Development wing based in Hyderabad, India... |
While many banks run core banking in-house, there are some which use outsourced service providers as well. There are several Systems integrators like Accenture, IBM and HP which implement these core banking packages at banks.