Core Banking Technology

Technology has changed our habits in a few years. Have you ever wondered the technology that helps you check your bank account from your phone? Working behind the scenes, core banking technology has brought a modernized platform to banks. Know more about banking and financial services in our blog section.

Before the arrival of the latest banking technology, it wasn’t easy to do even the most basic tasks. A simple transaction would take at least a day to get registered in the bank account. Each bank had its servers, which made the whole process more complicated.

As telecommunication technology advanced, banks were the first to adopt them. It revolutionized the whole banking model. These changes created what we call now core banking technology.

Furthermore, the technology has enabled users to access their accounts and carry on transactions from any bank branch. This advancement has simplified the whole process to a large extent.

Core Banking Technology and Its Services

Core Banking Technology

Core banking services are generally linked with retail banking. It provides its services to the general public. These services include providing savings accounts, credit cards, debit cards, loans, and transactional rights. Since all these services are provided to the general public, it makes the banking services much more accessible.

Today’s telecommunication technology allows the banks and credit unions to unify all the records irrespective of the location. The software integrated keeps a record of all the transactions. 

Nobody wants a restricted experience when they visit their bank. No one likes hassle. Customers want their banks to provide all the services quickly and efficiently. They would want to wait for a day to complete a simple transaction. 

Core banking technology has resolved this problem. Additionally, it has made the whole customer experience smooth and hassle-free.

Four key problem areas inhibit the performance of a banking entity. These areas are as follows-

  1. Cost
  2. Time to market
  3. Personalization
  4. Ecosystem

All these problems are resolved by implementing a robust core banking system that can cater to the bank’s needs and customers.

Most Common Core Banking Services

Some of the most common core banking services are as follows-

  • Loan and credit processing
  • Providing floating new accounts
  • Calculating interests
  • Processing deposits and withdrawals
  • Managing customer relationship management activities

Prominent Features of Core Banking Technology 

The core banking system works as a back-end office system. Managing all the transactions and providing services. It processes and posts updates to accounts and other financial records. The main features of a core banking system are as follows-

1. Empowers the existing customers

The primary motive behind implementing the technology was to empower the bank customers. Integration of such advanced technology, enables customers to have a very smooth and hassle-free experience while accessing their bank services.

This technology has given the customers greater freedom of their account transactions. Furthermore, they can perform any activity they want without actually having to wait in lines for hours. 

2. Increased security and reliability

Not long ago, hardly anyone trusted the banks. However, this has changed after the introduction and implementation of the latest technology and software. With the advancement of this service, transactions are now safer.

People trust the banks today because of this aspect. Features such as integrated API and Firewalls have reduced the risks of theft and frauds.

3. Increased efficiency and accessibility

Another significant aspect of the technology is increased accessibility. The fact that anyone can access their account from any part of the world is only possible because of this technology.

Furthermore, increased efficiency and accessibility has contributed to the increment of loyal bank customers. This has made customer experience improvements to a great extent.

4. Reduced additional costs

The additional costs have been reduced with the introduction of core banking technology. These costs are often the operational costs that are significantly brought down—ensuring the less human resources requirements for execution. 

Moreover, implementation of cloud-based systems also cuts down the cost of hardware and other components. This aspect requires less human resources to perform the functions. Furthermore, it also results in greater customer accountability. 

5. It makes the banking system user-friendly.

The advancements of technology have made the whole core banking system more user friendly. The experience of customers have dramatically improved. Now, customers have more control over how they can manage their money.

This whole aspect of the core banking services has made everything very adequate and efficient.

6. It makes the banking system multi-faceted.

The advantages of this banking service are multi-faceted. This technology has made so many aspects more comfortable to approach and implement. Making the banking system versatile is one of them.

Additionally, it enables the banking systems to be in pace with the ever-growing market. All this has been made possible because of the simplified banking processes by integrating this technology.

7. Transform the existing investments

Banks need a reliable core banking platform to transform their existing investments. The intricate features included in a core banking system help the bank to do the same.

In other words there are so many little details that a core banking system contains, enabling it to consolidate everything efficiently.

8. Reduced risk of error due to less human intervention

This is a widespread feature of a core banking system. Almost everything is automated using integrated technology. Consequently, this latest technology has reduced the risks of human error to a great extent.

Moreover, using this technology also saves a lot of time that humans wasted earlier in tallying and updating the account details manually. Thus, it results in reduced risk of errors in increased customers and productivity. 

9. Increased system flexibility

Core banking services are available to customers at every bank branch. This increased system flexibility has dramatically increased the effectiveness and productivity of the banking services.

Furthermore, the fluidity of the banking platforms and the usage of integrated tools to monitor everything has also increased system flexibility. Increased system flexibility furthermore results in greater competence.

10. Robust tools to track and analyze the performance

There are so many tools in a core banking system that enable the banks to monitor the performance.

Additionally, it also provides insights into customer performance. Core banking technology offers a complete package of consolidated core processing applications.

All these features and advantages explain the need to implement the technology to increase a bank’s efficiency and the efficiency of its branches. This explains the increase of trust in customers for banks and the services it provides.

Top-Notch Core Banking Technology Systems

Here is our list of some of the best Global Core Banking Systems. So let’s begin!

1. FLEXCUBE By Oracle

FLEXCUBE By Oracle

It is a global business with its extent to significant countries. Hence, FLEXCUBE enables multi-currency transactions. It is a very popular brand when it comes to core business technology.

However, the only drawback is that it does not integrate with other core systems. Additionally, all the customizations present in it are very costly.

2. Mambu by Mambu

Mambu by Mambu

It is one of the leading challengers in the core banking systems. Anyone can understand the platform provided by Mambu easily. However, the multi-currency technology used by Mambu is underdeveloped. 

The support team of Mambu is very active and responsive. It is an excellent option considering its flexibility and agility.

3. FISA System By FISA Group

FISA System By FISA Group

It is a perfect option for small and mid-sized banks. Furthermore the system is implemented with the latest technology. 

However, FISA system is not very good for enterprise level development since it has very minimal features. Also, it is not a global retail core banking system. It is just a database that you can use as a storage feature. 

4. FIS Profile By FIS

FIS Profile By FIS

It is an excellent option for all sized banks. FIS is a very feasible option for both commercial and retail services and investment banking. Furthermore it is very user friendly and can used for enterprise development.

Summing Up 

Implementing core banking system eased the banking services process. It has made the whole experience of banking very user friendly and accessible. Integrated technology that comes with the core banking system has increased the pace of work. Furthermore, it reduces the risks of error and fraud.

Customers can make transactions using core banking services from any part of the world. Additionally, they have access to their bank accounts on their mobile phones and tablets. This has made the whole banking process very flexible.

Moreover, since everything is done implementing the latest core banking technology, fewer human resources are required to manage the banking processes’ functioning.

In conclusion, the core banking technology has improved the whole banking system dramatically. The services that it provides to the general public enables greater accessibility of banking services to masses of people.

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FAQs

Here are some of the questions that you could have in mind related to core banking technology.

1. What are core banking products?

Core banking covers services such as transaction accounts, loans, mortgages, and payment across channels such as internet banking, ATM, mobile banking, etc.

2. What are the disadvantages of core banking?

Some of the disadvantages of core banking technologies include failure in computer systems can cause failure of network, additional efforts to protect data, etc.

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