What is Core Banking?

These days we can access our bank account from any of the branch of the bank. But do you know how we are able to do this? The answer is core banking.

Core banking is a business between banking organizations and small or retail customers. In core banking, the bank branches are networked to offer the services to their customers. Generally these services are depositing and loaning money.

What are Core Banking Functions?

The regular core banking functions are:

• Deposit money in accounts
• Offering loans or mortgages
• Making Payments

The customers of core banking can access these services through various modes like internet banking and ATMs and also from any branch of that bank.

What is Core Banking Solution?

To perform core banking it needs a platform or computer software. The communication and information technologies are combined to provide robust structure for this software. The different branches of the bank install this to implement core banking. This software is called as Core Banking Solutions.

Also these branches are networked with each other through internet, telephone or satellite. So the customers can access their account from any branch. The software executes many core banking operations like passbook maintenance, transaction recording, customer records, interest calculation, payments and withdrawals.

Advantages of Core Banking

1. Ability to offer developed operations to the customers.
2. Lowered costs.
3. Decreased risk of multiple data entry and outdated information.
4. The possible disturbance to business because of replacing whole system is prevented.

The core banking solutions has made revolution in the banking techniques and has allowed a planned attitude towards its operations.