What is meant by Core Banking?
A Core Banking System is a central software application that handles the fundamental banking processes and most common financial transactions of a bank. It forms the technological backbone for managing customer accounts, conducting transactions, and supporting various banking services.
Typical software functions in the area of "Core Banking System":
- Account management: Administration of various account types such as current, savings, and fixed deposit accounts.
- Credit management: Issuance and management of loans, including credit assessment and interest calculation.
- Payment processing: Handling of deposits, withdrawals, transfers, and other financial transactions.
- Customer management: Administration of customer data and relationships (CRM).
- Reporting and compliance: Generation of reports and ensuring adherence to regulatory requirements.
- API integration: Connection to external systems and services for extended functionalities.
Examples of "Core Banking System":
- OSPlus: Used in the Sparkassen-Finanzgruppe (German Savings Banks Finance Group).
- agree21: Employed in the cooperative financial group and private banks.
- Finacle: Developed by Infosys and used by various banks worldwide.
- Avaloq Core: Utilized by international banks such as Barclays and HSBC.
- SAP Industry-Solution-Banking: A solution for various banking processes, including credit management.
- BANCOS Core Banking: A customizable system for various financial institutions.