Core banking can is basically a bank end system support for all the bankers and customers of the bank, it helps the customer and banker to provide a smooth transaction between different branches of the same bank, each and every bank is connected to a specific domain server which allows the user to interact their transaction with their nearest branch no need to visit here existing branch.
Core banking was initially established to helps the retail business, before core banking, the person needed to visit the branch or open an account that was near to him,
so bankers to avoid losing the customers they come up with this core banking idea which allowed the bankers to hold on to their pre-existing customer.
How Does Core Banking Work?
The core banking itself is software, all the banks have a server of their own which helps them interact between multiple branches at the same.
It provides an interface that allows the user easy accessibility. There are various similar core banking software that allows the banks to not only
enhance their service but also as a result increase efficiency in woking.
There are various soft for example Temenos, Oracle FLEXCUBE, Finacle, etc.
These are the following features of the core banking system:
1. ATM Machine (Automated Teller Machine):
An Automated Teller Machine is an electronic banking outlet machine that works similarly to banks,
In addition, it allows the customer to complete the basic banking transaction without the need for a branch.
2. CDM (Cash Deposit Machine):
Another important feature of core banking is Cash Deposit Machine also commonly known as CDM.
It is a self terminal machine that not only allows the user to deposit but also helps them to make certain banking transactions as well.
3. Home branch facility (All in one and one in all):
Another important feature of core banking is the Home Branch Facility, This facility allows the user to make transactions at any other branch of the same bank.
In other words, the user no longer needs to visit the same branch where he has opened an account.
4. Internet Banking:
Online banking another important facility wherein it allows all the banking transactions to its customer.
Internet banking works in the same way all the banks work, for instance, paying your bills, making cash transfers, deposits, etc.
5. Mobile Banking:
Mobile banking is similar to online banking wherein all the transactions are carried out on mobile devices,
All kinds of transactions can be done through it, either using UPI or APP recommended by the bank.
In brief Core Banking has changed the banking system drastically making it the most effective then every before,
also make ascessable even to the remote location where it is difficult to open a bank.
Finally core banking has changed the way banking works and keeps improving it for the future users.