Core Banking and choosing the right solution
Imagine what banks looked like before 1970. Long queues and
particularly long waiting period for just about any transaction was
normal. People were customers of a branch and not really a parent bank.
All transactions could be performed at your particular branch only. Any
entry only reflected after more than 24 hours as information went to
data centers in batches at the end of the working day. However, over the
next 40 years most banks chose to create a Centralized Online Real-time
Exchange or Environment (CORE) to manage their operations, thus giving
rise to Core Banking. In India alone, the number of public sector bank
branches with core banking implementation went from 79.4% in March 2009
to 90% in March 2010. All over the world, the numbers are closing in on
cent per cent.
According to US-based research and
advisory firm Gartner, core banking system (CBS) is basically a back-end
system that performs banking transactions on a daily basis and updates
accounts and financial records. It is essentially a bank’s nervous
system that if affected can change the bank’s operations drastically.
CBS is a common point of connection for the entire gamut of products and
services that banks today provide under one umbrella.
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