Core banking is often considered the backbone of a bank. Which means the system should constantly be assessed, managed and updated, even if it means changing directions sometimes to follow where the industry is going or what new solution customers feel more comfortable with. That keeps a bank alive, makes sure its reputation is kept over the years, and means flexibility for anyone working in it.
While branch banking offers face-to-face solutions, with the core banking system the need to get anywhere is eliminated. That’s especially valuable for those living outside of big cities and whose access to banks isn’t always simple.
Internet and mobile banking make everything easier and faster too. As long as you’re keeping your records safe, you can do almost anything with your money in a matter of seconds and with a few clicks. No need to be tech-savvy either. Core banking is flexible, and allows its users to expand their plans when and where they feel The core banking technology also uses centralized databases, which leads to collecting all necessary data quickly. As a result, there’s less errors and no need for employees to leave their current tasks and go fix something. As you see, the core banking system is only evolving and can become more and more convenient, offering a variety of features, and being accessible to anyone who wants to manage their finances.
Now a days, 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 data centers. It means that the deposits made are reflected immediately on the servers of bank and the customer can withdraw the deposited money from any of the branches of bank throughout the world. These applications now also have the capability to address the needs of corporate customers providing a comprehensive banking solution. 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.