Results tagged “core banking”

IT Solutions Moving Forward


IT vendors assisting banks in front- and back end processes and accounting either through a branch- or centralized core database developed several software solutions. They also built compliant solutions enabling banks to follow regulations and processes, reduce manual labor, errors and omissions and increase automation. These solutions were mostly utilized for streamlining operations and improving customer service. This set of solutions may be treated as first generation IT in the banking and financial sector.

Specialized Solutions versus Core Banking Solutions

When banks across the globe are investing in specialized solutions for Front End Teller, Loans, Deposits, General Ledger, Payments, Cash Management, Trade Finance, Private Banking, Customer Data Management and so on, the role of the Core Banking Solution (CBS) needs to be reassessed. Initially,  the core banking solution was0020designed as an integrated solution providing a comprehensive functional offering in all areas of different lines of business, with transaction processing and accounting capability. The legacy software solutions used in banks developed by local vendors presented architectural, technical and functional constraints in scalability and performance, creating a demand for core banking solutions. Also, the maintenance and support of multiple solutions and vendors was a major issue for clients globally, making a core banking solution with integrated offerings the preferred choice.

Here goes the life history of banks -

Banks were first created for handling all the financial needs of people and businesses with licenses to run their segregated operational world- designated masters of their turf.

Simplicity as sophistication

Banking is an inherently complex industry. But for long the sector has been able to leverage technology to manage business complexity and to drive growth, profitability, customer experience and innovation.

Rationalized Software Cost

Banks investing in core banking software have to be cognizant of the various costs involved in procuring and implementing the same, such as:

a) Licensing
b) Implementation
c) Maintenance and Support

Future-proof Banking Solutions


Industry requirements often outpace technology solutions and there is a continuing need to plug this gap. This is especially true of the banking sector. Software companies have to be somewhat intuitive in terms of product design and development, in order to cater to the emerging trends and to stay in line with market dynamics.

Prevention of bypass surgery or heart attacks for core banking

Prevention of bypass surgery.jpg
Core banking systems were originally envisaged with the singular aim of maintaining customer account data in a centralized system accessible across the bank's network of branches. Account aggregation into assets and liabilities for general ledger consolidation was inherent in the core. To ably assist front office operations, the system comprised simple processes. Higher value transactions were often routed through multiple approval levels within the core, with a defined workflow.