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Core banking - Wikipedia, the free encyclopedia

Core banking
From Wikipedia, the free encyclopedia

Core banking is 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. 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 environment". 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 ATMs, Internet banking, and branches.

Core banking solutions

Core banking solutions are 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 creditprocessing 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 Many banks implement custom applications for core banking. Others implement/customize commercial ISV packages.

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Core banking - Wikipedia, the free encyclopedia

Overview of core banking solutions and their providers Package TCB TEMENOS T24 Sopra Banking Suite Essential Solutions BankFusion Universal Banking CSB Misys Equation Misys Midas Plus Finacle CFT-Bank Alnova Financial Solutions TCS BaNCS Bankway Corebank SAP Banking Services ETHIX Financial solutions (http://www.its.ws/enFinancial.cms) FLEXCUBE DIGIBANK Hogan Insite Banking System ICBA FIS Profile (formerly Sanchez Profile) SAB / SAMIC SFB / SCB Signature (software) Systematics CoreSoftt, SuVikas eSmartBanker Temenos Group Temenos Group Sopra Banking Software FPS GOLD Banking Software Misys Natech Misys Misys Infosys Center of Financial Technologies (CFT) Accenture / Alnova Tata Consultancy Services (TCS) Fidelity National Information Services (FIS) Fidelity National Information Services (FIS) SAP AG ITS Group Oracle Financial Services Software Oracle Financial Services Software Computer Sciences Corporation Automated Systems, Inc. Infopro Sdn Bhd Fidelity National Information Services (FIS) SAB UNISYS Fiserv Fidelity National Information Services (FIS) (formerly Systematics, Inc/ Alltel) VSoft Corporation RAMINFO Provider

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.
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References
IDCORP BANCO - IBS Intelligence (http://www.ibsintelligence.com/index.php? option=com_content&view=article&id=16191&Itemid=531/) Inntron- Core Banking vendors (http://www.inntron.com/core_banking.html/) Retrieved from "http://en.wikipedia.org/w/index.php?title=Core_banking&oldid=565141059" Categories: Banking terms Software This page was last modified on 21 July 2013 at 04:07. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.

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