Electronic Banking and Payment System – Reading Material 105
Core banking solution refers to a common IT solution wherein a central shareddatabase support the entire banking application. Business processes in all thebranches of a bank update a common database in a central server located atData centre, which gives a consolidated view of the bank’s operations. Branchesfunction as delivery channels providing services to the customers of the bank.Core Banking Solution is an integrated application that supports real time, multi-banking and multi-channel strategies.
The single biggest achievement of implementing the Core Banking Solution is that each customer is truly thecustomer of the Bank and not just the customer of the Branch, where his/her account is maintained. He/she can go to a branch anywhere in the country andperform a transaction. This is possible as the entire Customer Database iscentrally located at the Central Data Centre (CDC) and can be accessedthroughout the network of branches
.Key Features of the System:24X7 Banking
As a result of implementing Core Banking, most of the facilities being offered bybanks, are available to Customers 24 hours a day, 7 days a week. Thetransactions are performed using multiple channels such as ATMs, InternetBanking, Phone Banking and Mobile Banking. Further, the transactions usingthese delivery channels are updated in the CDC in real time.
Customers can avail of banking services across the branch and Channel networkirrespective of location where their account is maintained.
Integration with strategic sectors
Core Banking integrates all strategic sectors of Banking such as Trade Finance,Treasury, Asset-Liability Management and Corporate Balance Sheet. As a