In the present world,banking business is growing tremendously. Unlike before, it’s functions are not limited only to deposits taking and loan providing system, but it is enormously growing as a financial institution which provides an entire gamut of financial product and services. Such activities commenced by a bank under one system known as Core Banking.
Core Banking can be explained as a back-end system that processes banking transactions across the different branches of a bank. In simple words, customer need not visit own branch for any banking transaction. It provides an extreme facility to a customer to deal and enjoy banking services from any branch of the bank which has executed CBS.
Under the CBS implementation in any bank, the customer becomes a bank’s customer instead of a customer of a particular branch. Thus, it removes the limitations of geo-specific transaction.
Implementation of Core Banking Solution System has facilitated banks with various additional benefits and easier ways of handling bank transactions. It helps to speed up most of the common transactions of banks and customers. Among the essential core banking services are processing deposits and withdrawals, computing interest, floating new accounts, servicing loans, and customer relationship management activities. These banking applications are arranged on a centralized server which is hosted in the secured data center. The fact that these bank transactions can be executed remotely from any location has made CBS an important aspect of banking nowadays.
In the past few decades, the core banking system has come a long way. It is continuously evolving and expected more improved features in the future. With the innovations of new technology every time, undoubtedly, the core banking system will reign entirely on the banks.