Core banking

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(April 2007)

Core banking is a general term used to describe the services provided by a group of networked bank branches. Bank customers may access their funds and other simple transactions from any of the member branch offices.

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1 Core banking 2 Core banking solutions 3 Select core banking application package vendors 4 References

[edit] Core banking
Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the corporate banking division of the institution. Core banking basically is depositing and lending of money. Nowadays, most banks use core banking applications to support their operations where CORE stands for "centralized online real-time exchange". This basically means that all the bank's branches access applications from centralized datacenters. This means that the deposits made are reflected immediately on the bank's servers and the customer can withdraw the deposited money from any of the bank's branches throughout the world. These applications now also have the capability to address the needs of corporate customers, providing a comprehensive banking solution. A few decades ago it used to take at least a day for a transaction to reflect in the account because each branch had their local servers, and the data from the server in each branch was sent in a batch to the servers in the datacenter only at the end of the day (EoD). 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.

[edit] Core banking solutions
Core banking solutions are banking applications on a platform enabling a phased, strategic approach that is intended to allow banks to improve operations, reduce costs, and be prepared for growth. Implementing a modular, component-based enterprise solution facilitates integration with a bank's existing technologies. An overall service-oriented-architecture (SOA) helps banks reduce the risk that can result from manual data entry and out-of-date information, increases

working simultaneously on different issues and increasing efficiency. This new platform has changed the way banks are working. and posts updates to accounts and other financial records. and avoids the potential disruption to business caused by replacing entire systems. interest calculations on loans and deposits. balance of payments and withdrawal. Inc. satellite. These technologies have cut down time. passbook maintenance. Overview of core banking solutions and their providers Package Provider BankFusion Universal Banking Misys CSB Natech Misys Equation Misys Misys Midas Plus Misys Finacle Infosys CFT-Bank Center of Financial Technologies (CFT) Alnova Financial Solutions Accenture / Alnova TCS BaNCS Tata Consultancy Services (TCS) Bankway Fidelity National Information Services (FIS) Corebank Fidelity National Information Services (FIS) SAP Banking Services SAP AG FLEXCUBE Oracle Financial Services Software DIGIBANK Oracle Financial Services Software Hogan Computer Sciences Corporation Insite Banking System Automated information and review. computer software is developed to perform core operations of banking like recording of transactions. Core banking systems typically include deposit. agile architectures. It allows the user (customers) to operate accounts from any branch if it has installed core banking solutions. This software is installed at different branches of bank and then interconnected by means of communication lines like telephones. [edit] Select core banking application package vendors Many banks implement custom applications for core banking. Gartner defines a core banking system as a back-end system that processes daily banking transactions. customer records. ICBA Infopro Sdn Bhd Profile (software) (formerly Fidelity National Information Services (FIS) Sanchez Profile) SAB / SAMIC SAB . internet etc. The platform where communication technology and information technology are merged to suit core needs of banking is known as core banking solutions. loan and credit-processing capabilities. The advancement in technology. Here. especially Internet and information technology has led to new ways of doing business in banking. Core banking solutions is new jargon frequently used in banking circles. Strategic spending on these systems is based on a combination of service-oriented architecture and supporting technologies that create extensible. with interfaces to general ledger systems and reporting tools. Others implement/customize commercial ISV packages.

SuVikas VSoft Corporation While many banks run core banking in-house. IBM and HP which implement these core banking packages at banks. . There are several Systems integrators like Accenture.Overview of core banking solutions and their providers Package Provider SFB / SCB UNISYS Signature (software) Fiserv Fidelity National Information Services (FIS) (formerly Systematics Systematics. Inc/ Alltel) TEMENOS T24 Temenos Group CoreSoftt. there are some which use outsourced service providers as well.

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