Understanding Core Banking Solutions

In this era of globalization and diversification, our banking and financial system too have gone far to be integrated with other banks in the country and also across the world. In order to keep things organized in this scenario, centralization is the key.

Core banking system is the example of centralization in an organization. Core Banking solutions integrate all bank branches in the country to provide customers with the ease of conducting their business from any other bank branch in the country. CBS has made banking operations easier by merging self-service operations and back office data. Also, it has made customer demands easily addressable, eliminated repetition of work and errors due to multiple entries and eased the introduction of new financial products.

Core banking architecture includes every bank branch across the country grouped together into a network, maintaining a centralized record accessible by customers from any location. The core banking architecture is generally one of the major expenses for banks as it requires a heavy technical backup and support of service applications.

Advantages of Core Banking Solutions for Customers

There are various advantages that the customer may avail from CBS including:

• Access to unlimited banking facilities including deposits, transfers and savings from any location.
• Ease of accessibility of various banking facilities from a plethora of channels.
• Transparency and singularity in dealings. The customer is not confused with different updates and information from different bank branches.
• Saves time and provides accurate information.
• People living in rural areas can highly benefit from CBS as the payments and transfer process for rural people will be much easier and less time-consuming.

Features of Core Banking Architecture

Here are the key features of the core banking system which will give you an insight into this new approach to banking:

• Deposits and withdrawals are managed. The customer can freely withdraw from or deposit to any bank branch across the country without having to travel there.
• Payment processing is made easier and faster with the help of NEFT/RTGS.
• The bank focuses more on customer relationship management activities.
• The management and disbursal of loans made simpler.
• Established banking policies and also the criteria regarding minimal balance, the rates of interest, withdrawals allowed and such.

Thus, CBS has proved to be fruitful for both the banks and the customers.