Core banking is an umbrella term that refers to all the services of a network of bank branches. Core banking deals with banking accounting systems and services. It systematically keeps records of all the vital elements of the banking business like customer data, transaction data, banking transaction logs and much more.
Core banking services smartly integrate digital channels to access the bank network. It streamlines the banking operations and improves the overall functionality of a bank. Core banking services have a considerable impact on the bank’s functioning, administration and client management.
What is Core Banking Services (CBS)?
Customer can use their accounts from any part of the world and get core banking services from any branch of the CBS network. This is based on the idea that the customer is not a branch customer but a bank. Those things that help banks meet their most basic needs are called core-banking solutions.
Benefits of Core Banking
With the help of technology, banking transactions have become safer, faster, and more accessible. People can do banking from any part of the world and at any time with the core banking services, which makes it even better. It has also cut down on operational costs primarily because they don’t need to hire people to do them when customers do their transactions. Core banking has many advantages, such as these:
Benefits for Customers
- Quicker service at the bank counters for cash deposits and withdrawals, passbooks, statements of accounts, demand drafts, etc.
- Banking can be done from anywhere.
- Banking services can be provided.24 Hours a Day
- Internet banking and mobile banking can be used to make payments quickly.
- ATMs can be used to do banking at all times.
- All branches use applications from a central server or data centre, so deposits made in any addition show up right away. The customer can withdraw money from any component anywhere in the world.
- Because CBS is so important to those in rural areas, it is a good thing. People who grow food can get e-payments for subsidies and other items directly into their bank accounts. People in cities and villages will be able to quickly move money from one place to the other.
Benefits for Banks
- Process standardisation in the bank and its branches.
- Better customer service keeps customers coming back.
- Accuracy in transactions and a low risk of mistakes.
- Improved documentation management and records – centralized databases make it easy to get data and MIS report quickly.
- The government and regulatory boards like the RBI will be able to get their hands on more reports with ease.
- Having an account, processing cash, servicing loans, calculating interest, making policy changes like changing interest rates, etc.
A well-designed core banking system will make a difference in your business. Your customers will love how easy the plan is to use and flexible.