How has core banking solution helped the banking industry?

How has core banking solution helped the banking industry?

Core banking, centralized banking, open banking are the terms that have dominated the banking sector for the past couple of years. After all, it is one of the path-breaking systems the way banks have been functioning. Banks are no longer just an institution that allow you to deposit money and forget about it post giving you a minimum interest rate.

How is it different from legacy systems?

Core banking system and solutions are not just deposits or lending. Did you know you could do a plethora of tasks using these core banking systems? Be it, onboarding new customers, new companies, taking care of the accounting, booking forex deals, maintaining a central repository and the likes are all possible using the core banking system.

Does every bank use the same core banking solution?

It differs from bank to bank which service provider they choose. It is all requirement dependent which dictates the terms and conditions of the core banking system implemented in the bank. A core banking system has optimized the way banks function by providing the basic services such as improved operations which has the customer address listed as required. There are times when customer address are redirected to Post boxes or even other corporate address. How does one expect to keep a track of all these? Through the core banking solution obviously!

How is it helpful?

There were ledger systems in the older times where the discrepancy was higher given multiple entries made their way without anybody’s notice. However, that is no longer the case. With new age core banking software providers rolling out features such as the unique transaction numbers and the likes, these entries cannot be duplicated anymore. Each transaction entry is a new one and doesn’t overlap with the older ones. Additionally, you do not have to go through legacy books to find out when and how the transaction was made. All you need to do is enter the customer id which serves as the primary key to extract all the information related to the same.

With the help of core banking solutions, banks can now enroll customers under different account types. It could savings, current, loan or even maintain multiple pool accounts. It is not only hassle-free but makes detail extraction super easy and convenient. It enhances customer relationship management and allows you to sort customers easily who are eligible for products. Doesn’t that reduce the operations cost? Well, it completely does.

A CBS Software allows your customers to access the banking network from anywhere and everywhere. Mobility is what customers demand and core banking solutions do exactly the same.