Core Banking solution is one of the primary growth factors of the banking industry . It helps every bank to deliver tailor-made solutions to their customers with enhanced customer experience. Its primary goal is to enhance customer convenience/ service and focus on minimizing operational cost. It includes networks of branches, which enables every customer to avail banking services and complete their transaction at a lesser duration from any branch. This concept helps the banks to become a one-stop solution all the financial needs of their customers. It helps to increase employee efficiency and reduces the chances of error and fraud. The adoption of CBS has helped the banks to strengthen their relationship with their customers and deliver them customized solutions.
Recording of transactions, calculations, assimilating customer information, and maintaining massive databases is possible through CBS software. Essential elements of CBS include opening new accounts, Data collection services, deposits, withdrawals, mobile banking, internet banking, use of ATMs, loans, and deposits.
According to a Market research head , the global core banking solutions and market research firm in India market is estimated to reach a value of USD13 Mn by 2023. It allows banks to centralize its record-keeping and gives access to their customers to stay connected 24*7 to fulfill their banking needs.
Long queues and particularly long waiting period for just about any transaction was normal.
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.
